2 regional banks with price performance above the sector

Large-cap financials such as JPMorgan Chase (NYSE: JPM), Bank of America (NYSE: BAC) and Wells Fargo (NYSE: WFC) rallied early in the week alongside the broader market, while some smaller bank stocks, such as First Citizens Bancshares (NASDAQ:FCNCA) outperformed the broader sector.

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First Citizens, like its industry as a whole, has seen net interest income and margins rise as interest rates rise . This usually happens in a rising rate environment.

Regional banks can go unnoticed as investment opportunities. Unless you live in an area where one of these banks operates, they are not obvious candidates that fall under Peter Lynch's famous "buy what you know" category of investment ideas. But a filter, like the one you'll find on MarketBeat.com, can help you identify some names that aren't immediately obvious.

First Citizens is a North Carolina-based regional bank that operates 529 branches and offices in 19 states and Washington, DC. It has a market cap of $13.48 billion, making it the largest company in the regional and southeast banking subsector.

The stock outperformed not only the financial sector as a whole, but also its regional banking peers. Shares are up 5.78% in the past month and 25.47% in the past three months.

MarketBeat analyst data for the stock indicates a "moderate buy" rating with a price target of $925, a potential upside of 9.67%.

The stock staged a handle cup breakout on September 12, but was halted with the broader market volatility. It was unable to sustain the breakout and closed below its 50-day moving average the week ended September 30, but found that price line again. It is currently trading above its 10 and 21 day moving averages.

The company announces its third quarter results on October 27, with Wall Street forecasting net income of $19.77 per share on revenue of $1.02 billion. These would be increases of 62% and 110%, respectively.

For the full year, analysts expect the company to earn $69.33 per share, up 29% from 2021. Next year, that figure is expected to rise another 31% to reach $91.05 per share.

Other banks, of course, will benefit from a rising rate environment, and some are already showing share price appreciation reflecting strong fundamentals. < /p>

Currently, Pennsylvania-based Fulton Financial (NASDAQ: FULT) also outperforms all financial stocks. The stock is up 5.94% in the last month and 15.43% in the last three months.

Fulton has a market capitalization of $2.635 billion, which puts it either in the upper end of the small-cap category or in the lower end of the mid-cap category.

It is currently forming a mug-with-handle pattern, with a potential buy point above $17.67. It has been languishing below that point since mid-August.

According to MarketBeat stock earnings data, Fulton has topped earnings views in five of the past six quarters. During the quarter ended December 2021, the company encountered views of $0.37 per share.

Fulton is due to report its third quarter on October 18, after the closing bell. Analysts expect the company to earn $0.44 per share on revenue of $198.64 million. Both would be lower than the previous year's results, but often positive forecasts can offset declines in revenue or earnings and drive the stock higher.

Fulton is categorized as a super-regional bank, which means it has significant operations in multiple states.

Larger and more well-known super-regional banks include PNC (NYSE: PNC). This Pittsburgh-based bank has a strong presence in the Northeast, with more than 2,600 branches. The stock has been in a correction since January, but so far it has found a floor between $14...