...best guess is when the market believes the Fed is through raising interest rates. Last time I looked the consensus 12 month price estimate for BB&T was in the $40-$42 range. That would be a good move from these levels even tho '97 closed at 40 5/8. Takes a long view when a correction in a sector is going on.
and I am considering BB&T. Just some small investments for now, to which I expect to add over time. It's to be long-term for my retirement, which is many years away. But why this stock instead of others? What do all you "regulars" have to say? I am sincerely interested and thank you in advance for any and all answers. (Although I do work in a bank, it is not BB&T.)
You say you are 'looking to buy into a few banks'...........meaning, presumably, more than one bank.
You may wish to consider Citigroup...'C'..... It is a well-balanced, global, financial services commpany and its stock has performed very nicely in 1999, a year when most bank stocks performed miserably.
In that you seem to have the luxury of timing, the question I have is "Why buy any bank's stock at this time"? Many analysts and economists believe that the Fed is going to raise interest rates in 2000........more than once. Perhaps, delay your purchase until early Spring, at least.
In any case, the general wisdom seems to be that higher interest rates will reduce bank share prices, especially for regional-type banks such as BBT. (Please, people, do not inundate the board with messages about how banks have increased fee income and noninterest revenues and, thus, offset some of the net interest income risks.........we understand that concept.) The MARKET is saying that higher rates drive bank stock prices down..........period.
If you do not want to take the risks of investing in the technology or telecom sectors, and still wish to buy bank stocks, you may want to stay short for awhile, buy 3-month federal agency issues, and earn about 5.75 - 6.00 %........while waiting for bank share prices to get lower......and they will go lower.
my advice - buy track records. Salomon Smith Barney in late October ranked BB&T third in overall performance (profit, growth, operating efficiency, capital, and asset quality) behind Fifth Third and National Commerce. Suntrust was 15th, BofA 13th, Amsouth 20th,Wachovia 31st, Wells Fargo 36th, and First Union 42nd (no surprise there). This is just one opinion,
Read the annual reports of your top candidates and see if you like what they say. Good Investing!!