{"id":108183,"date":"2017-06-28T10:39:56","date_gmt":"2017-06-28T14:39:56","guid":{"rendered":"http:\/\/countingpips.com\/?p=108183"},"modified":"2017-06-28T06:40:29","modified_gmt":"2017-06-28T10:40:29","slug":"trump-pardon-triggers-shocking-move-in-bank-stocks","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2017\/06\/trump-pardon-triggers-shocking-move-in-bank-stocks\/","title":{"rendered":"Trump Pardon Triggers Shocking Move in Bank Stocks"},"content":{"rendered":"<div id=\"inves-2100660153\" class=\"inves-below-title-posts inves-entity-placement\"><div id =\"posts_date_custom\"><div align=\"left\">June 28, 2017<\/div><hr style=\"border: none; border-bottom: 3px solid black;\">\r\n<\/div><\/div><p>By <a href=\"http:\/\/WallStreetDaily.com\/\"><u>WallStreetDaily.com<\/u><\/a> <img loading=\"lazy\" decoding=\"async\" class=\"attachment-home-th size-home-th wp-post-image\" style=\"display: block; margin-bottom: 5px; clear: both;\" src=\"https:\/\/s3.amazonaws.com\/wallstreetdailywebsite\/wp-content\/uploads\/2017\/06\/0617_banks_feature.jpg\" sizes=\"auto, (max-width: 580px) 100vw, 580px\" srcset=\"https:\/\/s3.amazonaws.com\/wallstreetdailywebsite\/wp-content\/uploads\/2017\/06\/0617_banks_feature.jpg 580w, https:\/\/s3.amazonaws.com\/wallstreetdailywebsite\/wp-content\/uploads\/2017\/06\/0617_banks_feature-300x155.jpg 300w\" alt=\"Trump Pardon Triggers Shocking Move in Bank Stocks\" width=\"580\" height=\"300\" \/><\/p>\n<ul>\n<li>Dodd-Frank Act shackled the nation\u2019s banks.<\/li>\n<li>Trump aims to break the chains.<\/li>\n<li>One bank is perfectly positioned to reap the rewards.<\/li>\n<li><strong><a href=\"https:\/\/pro.agorafinancial.com\/m\/702473\" target=\"_blank\" rel=\"noopener\">Also recommended: 6-year \u201cbeta\u201d test leads to shocking results\u2026<\/a><\/strong><\/li>\n<\/ul>\n<hr \/>\n<p><img decoding=\"async\" style=\"float: left; max-width: 85px;\" src=\"https:\/\/duip7hn7nchpo.cloudfront.net\/editor-circle-louis-basenese.jpg\" alt=\"Louis Basenese\" \/>In the financial markets, tech and energy stocks have gotten the lion\u2019s share of press recently.<\/p>\n<p>As you may know, tech stocks have rallied on surging second-quarter profits, and energy names have tanked on plunging oil prices.<\/p>\n<p>But thanks to a major piece of legislation passed last week\u00a0 \u2014 led by Trump \u2014 one sector of the stock market has staged a major comeback.<\/p>\n<p>And as senior analyst Jonathan Rodriguez writes below, there\u2019s a lot more upside ahead for these stocks\u2026<\/p>\n<p>Ahead of the tape,<\/p><div id=\"inves-2758454808\" class=\"inves-in-content inves-entity-placement\"><hr style=\"border: 1px solid #ddd;\">\r\n<div id=\"inpost_ads_header\">\r\n<p style=\"font-size:10px; float:left; color:#666;\">Free Reports:<\/p><\/div>\r\n<div id=\"inpost_ads\"> \r\n<p style=\"font-size:15px; float:left;\"><a href=\"https:\/\/goo.gl\/1ApBOV\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/investmacro.com\/wp-content\/uploads\/2018\/06\/graph_techs_PD.png\" align=\"left\" width=\"80\"  height=\"55\"\/><\/a>\r\n\t     <a href=\"https:\/\/goo.gl\/1ApBOV\"><b><u>Get Our Free Metatrader 4 Indicators<\/u><\/b><\/a> - Put Our Free MetaTrader 4 Custom Indicators on your charts when you join our Weekly Newsletter<\/p><br><br>\r\n<br>\r\n<br>\r\n<p style=\"font-size:15px; float:left;\"><a href=\"https:\/\/goo.gl\/f3RrHX\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/investmacro.com\/wp-content\/uploads\/2019\/01\/cot_pie_80.png\" align=\"left\" width=\"80\"  height=\"55\"\/><\/a>\r\n\t    <a href=\"https:\/\/goo.gl\/f3RrHX\"><b><u>Get our Weekly Commitment of Traders Reports<\/u><\/b><\/a> - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.<\/p><br><br>\r\n<\/div>\r\n<hr style=\"border: 1px solid #ddd;\">\r\n<br><\/div>\n<p>Louis Basenese<br \/>\nChief Investment Strategist, <em>Wall Street Daily<\/em><\/p>\n<hr \/>\n<h2 class=\"centered headline\">The Real Driver of Economic Growth<\/h2>\n<p><img decoding=\"async\" style=\"float: left; max-width: 85px;\" src=\"https:\/\/duip7hn7nchpo.cloudfront.net\/editor-circle-jonathan-rodriguez.jpg\" alt=\"Jonathan Rodriguez\" \/>Banks have gotten a bad rap in the wake of the financial crisis of 2008.<\/p>\n<p>Yes, it\u2019s true that some of the country\u2019s largest institutions were guilty of overleveraging themselves and engaging in nefarious trading activities.<\/p>\n<p>And the trouble ultimately led to a $250 billion taxpayer-funded bailout of the industry.<\/p>\n<p>But the misdeeds of a relative few have weighed on many of America\u2019s banks.<\/p>\n<p>As you know, Congress passed the Dodd-Frank Act, which detailed sweeping financial regulations intended to prevent another meltdown, into law in 2010.<\/p>\n<p>Some of these regulations include increased reserve capital requirements, the creation of the Consumer Financial Protection Bureau (a $600 million financial watchdog for consumers) and a mountain of red tape that now stands between lenders and customers.<\/p>\n<p>And while many of these cost-heavy regulations target the nation\u2019s largest banks, some of which have been deemed \u201ctoo big to fail,\u201d they broadly affect banks of all sizes \u2014 unfairly so.<\/p>\n<p>In fact, Federal Reserve Chair Janet Yellen confessed in February that community banks \u2014 small banks that serve regional customers \u2014 were not responsible for the financial crisis.<\/p>\n<p>Yet community banks across the country are saddled with the sky-high costs of compliance for crimes they did not commit.<\/p>\n<p>We\u2019re talking about millions of dollars they could be lending to their residential and business customers to drive the economy.<\/p>\n<p>Well, if the Trump administration has its way\u2026 our nation\u2019s most crucial lenders are about to be unshackled.<\/p>\n<p>Last week, the House passed the Financial Choice Act. Among other things, it exempts small banks (those with less than $50 billion in assets) from key CFPB regulations on loan-making.<\/p>\n<p>Of course, the bill will likely undergo debate and change in the Senate.<\/p>\n<p>But this is the first step toward unlocking a huge growth opportunity for investors.<\/p>\n<p>And if you\u2019re looking for a head start, here\u2019s a tiny bank well-positioned to capitalize on deregulation\u2026<\/p>\n<h2 class=\"subhead\">A Rising Star Down South<\/h2>\n<p>Investar Holding Corp. (NASDAQ: ISTR) is the holding company for Investar Bank, a community bank headquartered in Baton Rouge, Louisiana.<\/p>\n<p>Investar sports a growth-friendly market cap of $204 million and is one of most well-capitalized community banks in the country.<\/p>\n<p>Over the last five years, annual loan growth for the bank has surged by double digits. Since 2012, revenue has grown 31% \u2014 seven times the growth of the industry (5%) over the same period.<\/p>\n<p>The bank has also boosted net income by an average of 35% over the last three years. That\u2019s four times the industry average.<\/p>\n<p>And Investar\u2019s booming business isn\u2019t expected too cool any time soon\u2026<\/p>\n<p>On double-digit loan and deposit growth, Wall Street estimates the bank will post earnings of $1.60 next year \u2014 a 44% annual increase.<\/p>\n<p>Better still, analysts see a 23% increase in revenue in 2018 \u2014 more than twice the industry\u2019s projected top-line growth.<\/p>\n<p>The company trades at 16 times forward earnings \u2014 right in line with the industry but 20% below the S&amp;P 500.<\/p>\n<p>Investar also boasts a price-to-book of 1.3 \u2014 a 13% discount to the industry average (1.5).<\/p>\n<p>And the company sports a yield of 0.35%.<\/p>\n<p>Best of all, even if Trump\u2019s Dodd-Frank reforms stall in Congress, the bank is on solid financial footing and poised for growth over the next several years.<\/p>\n<p>On the hunt,<\/p>\n<p>Jonathan Rodriguez<br \/>\nSenior Analyst, <i>Wall Street Daily <\/i><\/p>\n<p>The post <a href=\"https:\/\/www.wallstreetdaily.com\/2017\/06\/28\/trump-pardon-triggers-shocking-move-bank-stocks\/\" rel=\"nofollow\">Trump Pardon Triggers Shocking Move in Bank Stocks<\/a> appeared first on <a href=\"https:\/\/www.wallstreetdaily.com\" rel=\"nofollow\">Wall Street Daily<\/a>.<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>By WallStreetDaily.com Dodd-Frank Act shackled the nation\u2019s banks. Trump aims to break the chains. One bank is perfectly positioned to reap the rewards. Also recommended: 6-year \u201cbeta\u201d test leads to shocking results\u2026 In the financial markets, tech and energy stocks have gotten the lion\u2019s share of press recently. As you may know, tech stocks have [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-108183","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/108183","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=108183"}],"version-history":[{"count":2,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/108183\/revisions"}],"predecessor-version":[{"id":108189,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/108183\/revisions\/108189"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=108183"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=108183"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=108183"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}