Buy F.N.B. Corporation For A Decent Yield With 18% Upside

F.N.B. Corporation (FNB) is an ideal stock for investors looking for cashflow, along with decent capital gains. This financial holding company has a medium market capitalization, flawless balance sheet and a decent dividend whose stability is the icing on the cake. The decision to invest in this company is further supported by the fact that the Fed is planning another interest rate increase at the end of this year, which we understand is beneficial to the banking sector more than any other sector in the market. As a result, the institutions and insiders have been building their positions in FNB's stock which is a further confirmation for the potential investor.
The Fed has already increased their interest rates twice this year, and the update on another interest rate hike in December by Philadelphia Fed President Patrick Harker means that the banking industry is having the time of its life. This is beneficial to both economy and the banking industry. After a further increase in interest rates and eventually the spread, banks will now be more willing to lend to small businesses posing relatively high risks. Although, the increase in interest rates will make borrowing a little more expensive, but still funds would be available to small businesses at a cheap rate. This would, in turn, increase the profitability of banking companies like FNB and will further lead to business growth in the country.
With an average target of $16.55/share, a consensus of 11 analysts gives an... Read more

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