Kenneth Bruce
Bank of America Merrill Lynch
First-place appearances: 0

Total appearances: 6

Analyst debut: 2008

Bank of America Merrill Lynch’s Kenneth Bruce captures third place for a fourth year running. According to the San Francisco–based analyst, an “improving credit backdrop” has propelled earnings increases for the names he covers, and a stronger economic recovery would advance this trend. Macro gains have so far benefited more-affluent consumers, but the housing turnaround will lead to a “more democratic recovery in terms of wealth creation,” he advises. “Ultimately, that has a net positive impact on consumer sentiment and willingness to pull forward spending, which is really what leads to the loan growth that’s going to be the next driver of earnings growth for these companies.” Bruce believes that McLean, Virginia–based Capital One Financial Corp. will profit from such a broader rebound, so the credit card issuer still offers significant upside earnings growth potential — and its valuation is attractive. He also favors Ocwen Financial Corp., a distressed-loan servicer based in Atlanta that he says has picked up significant market share as the mortgage-servicing industry transitions from bank to nonbank providers. The researcher possesses an “in-depth understanding of the sector and stocks he covers,” one money manager avers. — Carolyn Koo