What to make of big bank stocks

We suggested earlier that some analysts might use the historic TARP to push clients back into the murky world of financial stocks. But so far, it seems that analysts are still wary, and not without reason. Meredith Whitney, Oppenheimer & Co's Delphic analyst, told Fortune, "Solvency concerns are off the table for now, but earnings weakness is not. Stocks are still very expensive on a real earnings basis."

That said, she did suggest that clients buy preferred shares of three big banks as of late. Fortune also notes JPMorgan's stock trades for 18 times trailing earnings, which is hardly a bargain considering all the questions surrounding the banking biz. It should be noted that other large banks thought to be relatively healthy, such as Wells Fargo and Bank of America, sport similarly pricey PEs. So there you have it. It feels like a big turn is coming, but it is a matter of timing. 

For more:
- here's the Fortune article

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