ChristopherCarrollSmith

In a weakened banking sector, Credit Suisse stands out

Long
NYSE:CS   CREDIT SUISSE GROUP SPON ADR-REP 1 ORD CHF0.40(REGD)
I've just finished reading through Moody's analysis of Friday's Fed stress test of banks. Honestly, a lot of it was over my head. However, from what I can tell, it looks like Credit Suisse may be the best positioned of the big banks to weather this crisis. In the Fed models, CS survived with more Tier 1 capital than any other bank, beating most of them by a wide margin. CS also has little exposure to loan losses. Here's the link to the Moody's report:

https://www.moodys.com/researchdocumentc...

CS looks attractively priced at 8.53 forward P/E and 0.6 PEG. Its Starmine Equity Summary Score is 9.9/10, meaning that analysts widely regard the stock as a "buy." I'm generally bearish on banks as we head into the July earnings season, but it looks like this may be a gem in the rough, a quality company that's been unduly punished along with the rest of the sector.
Comment: I sold Credit Suisse and bought Citigroup, which has a slightly weaker balance sheet, but a higher dividend of nearly 4%. I decided I like Citigroup better because it's more transparent than Credit Suisse. In the classic style of Swiss banks, Credit Suisse is very secretive and possibly somewhat shady.
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