Investor Insights

This summary was created by AI, based on 4 opinions in the last 12 months.

Experts are optimistic about the future of US regional banks, citing their strong positioning and potential for re-evaluation. There is anticipation of a trade up to $50 depending on declining interest rates, and recent reports of excellent quarters have led to a significant jump in value for KRE. Despite recent losses, experts believe that regional banks will bottom and see potential for growth. Additionally, KRE holds a basket of regional U.S. banks, making it a diversified investment option with a relatively low management expense ratio and a decent dividend yield.

Consensus
Optimistic
Valuation
Undervalued
BUY

It's time to look at US regional banks, because they're well-positioned for the next few years.

E.T.F.'s
TOP PICK

Regional banks are unfairly discounted. There has been a big sell-off in a sector that people will be re-evaluating and maybe consider buying. There is lots of consolidation at the $43 to $44 level. It has a solid base at $40 and should trade up to $50 depending on interest rates declining.

E.T.F.'s
BUY

No one said buy the regional banks before they reported, but KRE has jumped 16.5% so far this month, including 7.5% last week. Many regional banks reported excellent quarters. Also, there hasn't been another regional bank failure since the spring.

E.T.F.'s
premium

It's a Monthly Gems opinion which is available only for Premium members

Curated by Allan Tong since 2019.
99+ opinions with 4.15 rating.

TOP PICK

Speaking of which, KRE on the NYSE holds a basket of regional U.S. banks, including Comerica, SVB Financial and East West Bancorp. Some of the names in this basket will ring a bell for the wrong reasons. This ETF, as of the end of March, has lost 24%. If you think that the editors of Stockchase have gone temporarily insane, consider that sooner or later the regionals will bottom. Also factor that KRE charges only a 0.35% MER, pays a not-bad 2.39% dividend yield, and its beta is only 1.1, surprising considering all that has happened.

E.T.F.'s
BUY
If the yield curve flattens dramatically it wouldn't be good for the banks. For now, financials are likely to outperform. He owns some of these regional banks in stocked-based funds. Already have rallied significantly. Not necessarily a place to put new dollars. He still likes it and thinks it will be more profitable than growth stocks for the next year.
E.T.F.'s
BUY

He's not surprised by the outflows from tech, which has been defensive this year. If Delta continues to slow and accomodative policy continues, investors will look at other places in the market for returns. KRE was below market weight. He trimmed his holding in June and jusT added to it. Cyclicals are up; financials have been flat this month, though up this past week. He likes regional banks; there's a return to loan demand.

E.T.F.'s
BUY
Financials work really well in this re-flation trade. This goes right into it and should play very well at this time.
E.T.F.'s
BUY

Financials have been slower to recover, only gaining strength in September-October. Still have a long way to go. If you believe we had a generational low in long-term interest rates, and we're just entering a reflationary cycle, insurance companies benefit as assets go up in price. Higher rates are really good. Also interesting are KIE and KBE. Most interesting is IAI, making new highs. As a group, financials have underperformed since 2007, so they should now have a tailwind in this environment.

E.T.F.'s
WAIT
Underweight US banks right now. They've underperformed the S&P for a while. Low interest rates, plus economic uncertainty. If interest rates start to move, they'll do better. But not now.
E.T.F.'s
DON'T BUY
Short term it is a goodbye. You are too early on this by a couple of years at least. Flat and inverted yield curves are toxic for their earnings. The Canadian banks are some of the better ones in the world as they rely more on fees than on interest margins. You also get dividend tax credits.
E.T.F.'s
COMMENT
Regional banks can defend better in a weaker economy. Declining rates are tough for all banks. Competition is hurting deposit costs, while yields are weakening on assets. Credit is pristine right now, so there is no where but downside from a credit perspective. He is not expecting an immediate turn, but he can't convince himself there will be many more buyers from here.
E.T.F.'s
DON'T BUY
The US regionals are driven by the US economy which has been on a decent pace. But it'll slow down this year and maybe the next. They're doing fine, chugging along, with no credit issues. He's lukewarm about KRE. It's sold off lately. Hold onto it and don't get aggressive now. Commercial lending is cyclically sensitive, which is his concern.
E.T.F.'s
BUY
Canadian Banks, BAC-N. See his educational segment today on Canadian banks. The US banks will make weaker lows before new highs. He is long on KRE-T (US Banks).
E.T.F.'s
BUY
He does not own ETFs but he owns regional banks and likes the industry very much. See his Top Picks today. Interest rates are going up for sure in the US. The yield curve is flat in the US but showing signs of steepening, which is positive for them. He would buy this one if you are into ETFs.
E.T.F.'s
BUY

KBE vs. KRE? Both US listed. KBE is basically the S&P US bank index. KRE is regional banks. Difference is regional banks are consumer oriented, like Canadian banks. They are not “big enough to fail.” They haven’t performed. US banks will probably perform, because they’re cheap. Either one would be fine, but the regional one is slightly less risky, KRE would probably be the better of the two.

E.T.F.'s
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SPDR S&P Regional Banking ETF(KRE-N) Rating

Ranking : 4 out of 5

Bullish - Buy Signals / Votes : 2

Neutral - Hold Signals / Votes : 0

Bearish - Sell Signals / Votes : 0

Total Signals / Votes : 2

Stockchase rating for SPDR S&P Regional Banking ETF is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

SPDR S&P Regional Banking ETF(KRE-N) Frequently Asked Questions

What is SPDR S&P Regional Banking ETF stock symbol?

SPDR S&P Regional Banking ETF is a American stock, trading under the symbol KRE-N on the NYSE Arca (KRE). It is usually referred to as AMEX:KRE or KRE-N

Is SPDR S&P Regional Banking ETF a buy or a sell?

In the last year, 2 stock analysts published opinions about KRE-N. 2 analysts recommended to BUY the stock. 0 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for SPDR S&P Regional Banking ETF.

Is SPDR S&P Regional Banking ETF a good investment or a top pick?

SPDR S&P Regional Banking ETF was recommended as a Top Pick by on . Read the latest stock experts ratings for SPDR S&P Regional Banking ETF.

Why is SPDR S&P Regional Banking ETF stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is SPDR S&P Regional Banking ETF worth watching?

2 stock analysts on Stockchase covered SPDR S&P Regional Banking ETF In the last year. It is a trending stock that is worth watching.

What is SPDR S&P Regional Banking ETF stock price?

On 2024-02-23, SPDR S&P Regional Banking ETF (KRE-N) stock closed at a price of $47.87.