PNC Financial Services Group (NYSE: PNC): Lagging Bank Stock Just Triggered a 'Buy' Signal

One of my favorite strategies is to find a strong group and look for lagging stocks within it that are just starting to play catch-up. It is a variation on the "strongest stocks in the strongest groups" mantra espoused by Wall Street strategists, but I think my modification offers a little more bang for your buck.

Currently, the banks, and especially regional banks, are breaking out to the upside.

Leaders in the group, such as U.S. Bancorp (NYSE: USB), have already made some nice gains this month, and even more since their respective October lows. One of my favorites right now is PNC Financial Services Group (NYSE: PNC), which is based in Pittsburgh.
To be sure, the rising tide of a strong sector does not float all boats, especially those with holes in their hulls. Some stocks are down for reasons besides simply being off investors' radar. Therefore, just because a stock is low in price relative to its recent past does not necessarily mean it will rally to catch up with its sector. Indeed, weak stocks tend to stay that way.  (more)

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