US Bancorp (USB)

jasonjim (< 20) Submitted: 1/02/08 8:11 PM : Start Price: $30.14 USB Score: 30.35

Usb, surprisingly perhaps among the top ten banks ranked by assets in the USA, is currently valued by the market at around $31.08 (Jan 2,08) which is not bad considering it is a bank and they have all suffered regardless of exposure to bad debt over the past few months. This bank is still undervalued and has very little downside risk. My feeling is that it has a 1 year target price of about $40 or so, perhaps more. Dividend is about 4.9 %, pretty good while you wait for capital appreciation. Estimated EPS for 2008 is $2.90, which gives a pretty low P/E if things materialize as expected. This is a very conservative investment which may realize a reasonably good profit and very little chance of a loss.

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