"Regional Banks Face Credit Rating Cuts, but Analysts Spot Hidden Gems"

Moody's credit rating cuts have put additional pressure on regional bank stocks, which have already been underperforming this year. However, some analysts believe that there are bargains to be found in the sector. Wells Fargo banking analyst Michael Mayo suggests that the price discount on regional bank stocks due to rising interest rates and potential recession fears is overblown. He advises investors to look for consistency of strategy and management, credit quality, cost control, and sound capital levels when considering regional bank investments. Analysts recommend stocks such as PNC Financial Services, U.S. Bancorp, Fifth Third Bancorp, East West Bancorp, New York Community Bank, and Columbia Banking System as potential opportunities in the regional bank sector.