The financials have been on a tear this year and after the outstanding jobs report this morning, they are leading the rally today. I have written several articles on the banks stating that they have gone from being significant underperformers in 2011 to solid outperformers in 2012. Some analysts are stating people should wait for a pullback to get in, a pullback that may never come frankly or may be so quick and shallow you will miss it if you blink. So what to do?
My position is to start a position a quarter at a time on a weekly interval with the bank that is most undervalued by enterprise value to sales ratio (EV/Sales) coupled with having the most upside based on analysts' consensus mean estimated price target.
The EV/Sales ratio is a valuation measure that compares the enterprise value of a company to the company's sales. The EV/sales
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