It is another rough day for bank stocks, as comments from JP Morgan CEO Jamie Dimon that the crisis is banking is not over is pressuring the shares. However, Mr. Dimon said that the situation is not comparable to 2008, and I believe the main risk to banks is not failure, but declining earnings estimates this year due to lower interest margins and rising loan losses. However, a recent winner for us, U.S. Bancorp (USB) is up to handle the challenges.

They have limited loan exposure to the office market, which is the main area of concern. I also believe with a strong deposit base, with 25% in non-interest-bearing checking accounts, the situation is manageable for USB. While EPS estimates of $4.80 this year will likely have to come down as much as 15%, this is more than reflected in the current stock price. I look for earnings on April 19th, when investors get more information, to be a positive catalyst for the stocks.

Buy USB stock under $37, my target is $42.