Large-cap banks weaken again as valuation concerns persist
C, GS, BAC, MS and WFC trade weaker again after BTIG’s Jonathan Krinsky flagged the BKX’s 13-week rally and Raymond James CIO Larry Adam highlighted financials at about 2.3 times book value.
C GS BAC MS WFC all weaker again in large cap banks.
Yesterday, group better for sale with BTIG's strategist Jonathan Krinsky noted the BKX had risen for 13 consecutive weeks, the longest such streak on record, and warned that the group could be vulnerable to a pullback as September approached.
Today, Raymond James CIO (Larry Adam) noted the financial sector was trading at about 2.3 times book value, near its highest level in the past 20 years.
He highlighted the sector’s price-to-book ratio in a chart showing its valuation from 2006 through 2026.
The ratio had climbed from lows of around 0.6 times during the global financial crisis to above 2 times in 2025 and 2026.
The sector’s price-to-book ratio had reached roughly 2.3 times, putting it near the upper end of its two-decade historical range Link To Story from SEEKINGALPHA.com