Top 10 Quant-rated regional bank stocks as credit concerns rock the industry

[Bank sign on a building exterior.]
kevinjeon00

U.S. regional bank stocks took it on the chin this week after the disclosure of bad loans by Zions Bancorporation (ZION [https://seekingalpha.com/symbol/ZION]) and Western Alliance Bancorporation (WAL [https://seekingalpha.com/symbol/WAL]) sent ripples through the industry.

The KBW Nasdaq Regional Banking Index (KRX [https://seekingalpha.com/symbol/KRX]) fell as much as -4.2% this week and hit a session low on Thursday. Meanwhile, ZION and WAL retreated -5.1% and -3.3%, respectively, for the week.

After Thursday's carnage [https://seekingalpha.com/news/4504958-regional-bank-stock-slide-after-two-banks-disclose-bad-loans], which also hit the broader [https://seekingalpha.com/news/4505099-bank-fears-spread-with-wider-market-spooked-over-credit-cockroaches] financial sector, Friday saw a solid rebound [https://seekingalpha.com/news/4505263-bank-stocks-retrace-some-of-thursdays-losses-as-investors-nerves-settle] on commentary from banks and analysts that highlighted the industry's strong fundamentals.

With regional banks in the spotlight, here are the top 10 such U.S. stocks ranked by their Seeking Alpha Quant rating (the companies have a market cap of at least $1B):

* Regions Financial (RF [https://seekingalpha.com/symbol/RF]); Strong Buy, 4.84 [https://seekingalpha.com/symbol/RF/ratings/quant-ratings].
* M&T Bank (MTB [https://seekingalpha.com/symbol/MTB]); Strong Buy, 4.67 [https://seekingalpha.com/symbol/MTB/ratings/quant-ratings].
* Provident Financial Services (PFS [https://seekingalpha.com/symbol/PFS]); Strong Buy, 4.65 [https://seekingalpha.com/symbol/PFS/ratings/quant-ratings].
* Citizens Financial (CFG [https://seekingalpha.com/symbol/CFG]); Strong Buy, 4.65 [https://seekingalpha.com/symbol/CFG/ratings/quant-ratings].
* Atlantic Union Bankshares (AUB [https://seekingalpha.com/symbol/AUB]); Strong Buy, 4.61 [https://seekingalpha.com/symbol/AUB/ratings/quant-ratings].
* Bank OZK (OZK [https://seekingalpha.com/symbol/OZK]); Strong Buy, 4.61 [https://seekingalpha.com/symbol/OZK/ratings/quant-ratings].
* Valley National Bancorp (VLY [https://seekingalpha.com/symbol/VLY]); Strong Buy, 4.60 [https://seekingalpha.com/symbol/VLY/ratings/quant-ratings].
* Popular (BPOP [https://seekingalpha.com/symbol/BPOP]); Strong Buy, 4.58 [https://seekingalpha.com/symbol/BPOP/ratings/quant-ratings].
* Associated Banc-Corp (ASB [https://seekingalpha.com/symbol/ASB]); Strong Buy, 4.58 [https://seekingalpha.com/symbol/ASB/ratings/quant-ratings].
* Texas Capital Bancshares (TCBI [https://seekingalpha.com/symbol/TCBI]); Strong Buy, 4.56 [https://seekingalpha.com/symbol/TCBI/ratings/quant-ratings].

Here are some exchange-traded funds of interest that track the financial sector: (NYSEARCA:XLF [https://seekingalpha.com/symbol/XLF]), (NYSEARCA:VFH [https://seekingalpha.com/symbol/VFH]), (NYSEARCA:IYF [https://seekingalpha.com/symbol/IYF]), (NYSEARCA:FNCL [https://seekingalpha.com/symbol/FNCL]), (NYSEARCA:IYG [https://seekingalpha.com/symbol/IYG]), and (NYSEARCA:FXO [https://seekingalpha.com/symbol/FXO]).

MORE ON THE FINANCIAL SECTOR

* IYF: Stable Growth For The Long-Term Investor [https://seekingalpha.com/article/4829683-iyf-stable-growth-for-long-term-investor]
* XLF: Financials Appear Primed For More Record Highs (Rating Upgrade) [https://seekingalpha.com/article/4824656-xlf-financials-appear-primed-for-more-record-highs-rating-upgrade]
* Breaking Down VFH: A Practical Look At Vanguard's Financials ETF [https://seekingalpha.com/article/4822263-breaking-down-vfh-practical-look-at-vanguards-financials-etf]
* Bond king Bill Gross warns about regional bank 'cockroaches' and gold’s momentum rally [https://seekingalpha.com/news/4505438-bill-gross-warns-bank-cockroaches-gold-rally]
* Jefferies, Zions, Western Alliance sink, leading regional bank stocks down on credit risk concern [https://seekingalpha.com/news/4504958-regional-bank-stock-slide-after-two-banks-disclose-bad-loans]