There weren’t any S&P 500 earnings reactions yesterday…
However, one industry group continues to stand out: Regional Banks.
There are 346 tradeable Regional Bank stocks in the U.S., but most have been dead money, or worse, for years.
Balance sheet stress, deposit flight, interest rate risk, and the absence of consolidation have weighed on the group.
We haven’t seen a wave of M&A to clean things up in decades.
The weakest names are still out there, dragging down the averages like the S&P Regional Bank ETF $KRE.
And that’s why we built a custom Super Regional Bank Index - to isolate the quality.
Our Super Regional Bank Index is at all-time highs 📈
Our Super Regional Bank Index includes the top 25 Regional Banks by market capitalization. With loosening banking regulations, these names are poised to benefit from industry consolidation.
As you can see, the index is breaking above the 2018 peak for the first time. After over 7 years of no returns, this is the beginning of a brand-new uptrend.
You won't see that in the KRE, which has structurally broken names.
This is how we identify the leaders that are separating from the pack.
One of our favorite names is Intercorp Financial Services $IFS, a $4.2B regional bank based in Peru.
Don’t let the market cap fool you. IFS is a powerhouse 💪
Thanks to explosive revenue and net income growth, Intercorp Financial Services has been rewarded for its last two earnings reports.
In the most recent quarter, revenue jumped 47% year-over-year, while net interest income surged 227% to a new all-time high.
While most banks struggle to defend margins and grow earnings, IFS is thriving.
It’s no surprise the stock is showing major relative strength.
Here's the setup in IFS👇
Intercorp Financial Services is in the process of resolving a multi-year accumulation pattern below the 61.8% retracement of the prior drawdown.
A breakout above this key level of interest would shift the path of least resistance toward new all-time highs.
It’s a high-probability setup backed by real fundamental progress.
We want to own IFS above 36, with a target of 47.50 and 66 over the coming quarters.
Thank you for reading.
- The Beat Report Team
PS: Breakout Multiplier is about finding and riding the fastest horses with leverage.
Steve Strazza uses tight consolidations, clean breakouts, and options trades that can double within days.
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