BB&T trades at a respective 16.9x and 10.8x past and forward earnings with, a dividend yield of 2.6%.
Consensus estimates for BB&T's EPS forecast are that it will grow by 36.1% to $2.49 in 2012, and then by 14.5% and 10.5% in the following two years. Modeling a CAGR of 19.8% for EPS over the next three years, and then discounting backwards by a WACC of 9%, yields a fair value figure of $39.57, implying 27.7% upside. The acquisition of Crump Group's P&C and life insurance business for $570M in cash will be almost immediately accretive. Strong fourth quarter results also beat consensus by 3.8%, and the firm has plenty of room to penetrate off of its "community bank" image."
The author indicated that BB&T was his favorite of the three stocks covered in the article.