Banking companies with diversified business lines and fee-based revenue streams are best positioned to weather the volatile market conditions that have rattled financial stocks recently, according to analysts.
In a research report published Wednesday, Catherine Murray of J.P. Morgan Chase & Co. recommended staying with higher-quality names to avoid getting blown up by the negative sector fundamentals. She named Wells Fargo & Co. and Citigroup Inc. as the stocks investors should keep in their portfolio. A number of other analysts also pointed to Citigroup as a good stock to own right now. With a broad menu of financial services that includes banking, insurance, and brokerage, Citigroup has excellent growth prospects, said Andrew Collins, an analyst at ING Barings, who participated in an American Banker roundtable on Tuesday.