In general, we believe it is still a bit early to get involved with non-US bank stocks as the fundamental outlook remains weak -- asset quality will continue to deteriorate as individuals and companies default on loans, and revenues should continue to fall as loan growth falters and investment banking faces a dearth of new business in the face of economic slowing.

Consumer job losses and sluggish business conditions are increasing worldwide, which will tend to dampen demand for credit, even assuming banks are capable of lending more. Moreover, these factors will also hurt asset quality and increase losses on the existing "good" loan portfolios, even apart from considerations of toxic assets. Combined with top-line pressure due to weakening economic conditions, non-US banks face a daunting outlook.

That said, we believe that banks in stable emerging economies, such as Chile, Brazil or India, may be more attractive investments -- similar to what

...

In general, we believe it is still a bit early to get involved with non-US bank stocks as the fundamental outlook remains weak -- asset quality will continue to deteriorate as individuals and companies default on loans, and revenues should continue to fall as loan growth falters and investment banking faces a dearth of new business in the face of economic slowing.

Consumer job losses and sluggish business conditions are increasing worldwide, which will tend to dampen demand for credit, even assuming banks are capable of lending more. Moreover, these factors will also hurt asset quality and increase losses on the existing "good" loan portfolios, even apart from considerations of toxic assets. Combined with top-line pressure due to weakening economic conditions, non-US banks face a daunting outlook.

That said, we believe that banks in stable emerging economies, such as Chile, Brazil or India, may be more attractive investments -- similar to what

...

In general, we believe it is still a bit early to get involved with non-US bank stocks as the fundamental outlook remains weak -- asset quality will continue to deteriorate as individuals and companies default on loans, and revenues should continue to fall as loan growth falters and investment banking faces a dearth of new business in the face of economic slowing. Consumer job losses and sluggish business conditions are increasing worldwide, which will tend to dampen demand for credit, even assuming banks are capable of lending more. Moreover, these factors will also hurt asset quality and increase losses on the existing "good" loan portfolios, even apart from considerations of toxic assets. Combined with top-line pressure due to weakening economic conditions, non-US banks face a daunting outlook. That said, we believe that banks in stable emerging economies, such as Chile, Brazil or India, may be more attractive ...

Mitsubishi UFJ Financial Group, Inc. (MTU) reported a fiscal year (March 31) loss of ¥271 billion versus ¥629 billion in net earnings in the year-ago period. This reflected ¥305 billion of increased credit costs related to deterioration in asset quality from the economic slowdown, a ¥384 billion jump in net losses from equity securities due to lower share prices, and ¥267 billion in losses from securitized products.Gross profits for the period were ¥2,273 billion, down ¥240 billion, or 7%, from the ¥3,513 billion reported for the period ending March 31, 2008. This largely reflected a¥238 billion decline in trading income and other business profits due to ¥267 billion in losses from securitized products and a ¥103 billion decline in net fees and commissions from deterioration in the market environment, partly offset by a ¥134 billion increase in net interest income from higher overseas net lending income ...

Here are the stocks added to the Zacks #1 Rank ("strong buy") List today:

The Advisory Board Co (ABCO) Koninklijke Ahold NV (AHONY) Alliance Imaging Inc (AIQ) Amerisafe Inc (AMSF) Arena Pharmaceuticals Inc (ARNA) Ariad Pharmaceuticals Inc (ARIA) AspenBio Pharma Inc (APPY) AstraZeneca plc (AZN) BASF SE (BASFY) CBIZ Inc (CBZ) Chemed Corp (CHE) Church & Dwight Co Inc (CHD) CombinatoRx Inc (CRXX) Continucare Corp (CNU) deCODE genetics Inc (DCGN) EZCORP Inc (EZPW) Hellenic Telecom Organization SA (OTE) Horsehead Holding Corp (ZINC) Human Genome Sciences (HGSI) Jackson Hewitt Tax Service Inc (JTX) Jazz Pharmaceuticals Inc (JAZZ) Kirkland's Inc (KIRK) La Jolla Pharmaceutical Co (LJPC) MAKO Surgical Corp (MAKO) Mitsubishi UFJ Financial Group Inc (MTU) NovaMed Inc (NOVA) Pactiv Corp (PTV) Reed's Inc ...

Here are the stocks added to the Zacks #1 Rank ("strong buy") List today:

The Advisory Board Co (ABCO) Alliance Imaging Inc (AIQ) Allscripts-Misys Healthcare Solutions (MDRX) Almost Family Inc (AFAM) Alnylam Pharmaceuticals Inc (ALNY) Array BioPharma Inc (ARRY) AsiaInfo Holdings Inc (ASIA) athenahealth Inc (ATHN) BearingPoint Inc (BGPT) Chemed Corp (CHE) Coca-Cola Amatil Ltd (CCLAY) Corinthian Colleges Inc (COCO) Corrections Corporation of America (CXW) Cox Radio Inc (CXR) Crown Castle International Corp (CCI) CSG Systems International Inc (CSGS) deCODE genetics Inc (DCGN) Delhaize Group (DEG) Diageo plc (DEO) DRI Corp (TBUS) El Paso Pipeline Partners LP (EPB) Elbit Systems Ltd (ESLT) The Ensign Group Inc (ENSG) EnteroMedics Inc (ETRM) EZCORP Inc (EZPW) FGX International Holdings Ltd (FGXI) Force Protection Inc (FRPT) ...

Here are the stocks added to the Zacks #1 Rank ("strong buy") List today:

AAR Corp (AIR) The Advisory Board Co (ABCO) Alliance Imaging Inc (AIQ) Allscripts-Misys Healthcare Solutions (MDRX) Array BioPharma Inc (ARRY) AsiaInfo Holdings Inc (ASIA) athenahealth Inc (ATHN) BearingPoint Inc (BGPT) Boston Properties Inc (BXP) Chemed Corp (CHE) Coca-Cola Amatil Ltd (CCLAY) Corinthian Colleges Inc (COCO) Corrections Corporation of America (CXW) Cox Radio Inc (CXR) Crown Castle International Corp (CCI) CSG Systems International Inc (CSGS) deCODE genetics Inc (DCGN) Delhaize Group (DEG) DRI Corp (TBUS) El Paso Pipeline Partners LP (EPB) Elbit Systems Ltd (ESLT) The Ensign Group Inc (ENSG) EnteroMedics Inc (ETRM) FGX International Holdings Ltd (FGXI) Force Protection Inc (FRPT) FPIC Insurance Group Inc (FPIC) Gentiva Health Services ...

To say that bank stocks have been put through the ringer would be an understatement. As a result, many are rightfully staying away from the sector or even anything financial. While that is a good idea amid current conditions, a long-term investment strategy could greatly benefit by some exposure to banks. < ?DART(15);?>

Even though some banks have been beaten down by the credit crisis, one can still turn to industry stalwarts that should be strong enough to stand on their own during turbulent times and possibly lead the industry to a recovery from current bargain levels. Two bank giants in particular are weathering the credit crisis storm relatively well and have a layer of reinforcement around them in the form of the government's Troubled Asset Relief Program, or TARP. These are JP Morgan Chase & Co. (JPM) and Wells Fargo & Company (WFC).

JP Morgan Chase & Co.

...

Here are the stocks added to the Zacks #1 Rank ("strong buy") List today:

Amtrust Financial Services Inc (AFSI) Antares Pharma Inc (AIS) AsiaInfo Holdings Inc (ASIA) AtriCure Inc (ATRC) Bayer AG (BAYRY) CBIZ Inc (CBZ) Command Security Corp (MOC) Continucare Corp (CNU) CSG Systems International Inc (CSGS) Daimler AG (DAI) Dolby Laboratories Inc (DLB) Elbit Systems Ltd (ESLT) Helicos BioSciences Corp (HLCS) HMS Holdings Corp (HMSY) Human Genome Sciences (HGSI) I-Many Inc (IMNY) Ikanos Communications Inc (IKAN) Immunomedics Inc (IMMU) Incyte Corp (INCY) James Hardie Industries NV (JHX) Kirkland's Inc (KIRK) Landry's Restaurants Inc (LNY) MAKO Surgical Corp (MAKO) MAP Pharmaceuticals Inc (MAPP) Mitsubishi UFJ Financial Group Inc (MTU) National Beverage Corp (FIZZ) NorthWestern Corp (NWE) Novartis AG (NVS) Novavax ...

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