Bank stocks are about to get a lift from Lehman Brothers.
Jeffrey Applegate, the firm's chief equity strategist, is preparing a
Mr. Applegate, who was readying his message before last week's rate cut
The reduction of the federal funds rate by 25 basis points, to 5%,
Mr. Applegate predicts even better times by summer, with the federal
"The Fed must take firm and aggressive action to recalibrate the yield
As Lehman's prime stock picker and a frequent commentator on the market,
It may breathe some life into a sector whose own industry analysts have
In one regard, though, Mr. Applegate does resemble those analysts-they
Mr. Applegate's favorite bank stocks are part of the Standard & Poor's
This group, to which he also called attention in a report last summer,
"The market's clocking of financials is way overdone," he said.
The banking industry is at its healthiest point in 30 years, he said.
Back then, banks traded at 87% of the trailing market multiple, versus
"A corollary to the good fundamentals is that earnings of financials