Kenneth Usdin
Jefferies
First-place appearances: 2

Total appearances: 8

Analyst debut: 2006

Jefferies analyst Kenneth Usdin climbs from runner-up to third place. Usdin “does a great job of analyzing reams of industry data to come up with actionable ideas,” in the words of one investor. Based on continued improvement in credit quality, rising interest rates and the U.S. economy’s broader and better base, the analyst pronounces himself “directionally positive” on the sector. In this scenario he’s recommending Columbus, Ohio–based Huntington Bancshares, citing the Midwest providers multiple expansion and top- and bottom-line growth. He also favors Regions Financial Corp. of Birmingham, Alabama because the Southeast bank is reaping the rewards of advancements in its capital base, credit quality and expense control. Looking ahead, Usdin observes that although price-earnings multiples have expanded for midcap banks, earnings estimates for the next two years haven’t followed suit. “You still really need a better backdrop economically to get you to that next stage of growth,” he explains, adding that U.S. real gross domestic product expansion of at least 3 percent would boost earnings for companies in the sector and make their stocks appear less expensive. — Carolyn Koo