Value or Quality? Five Bank Stocks for When Unemployment Rises

Bank stocks are down by double digits this year, falling on fears of a recession coming in early 2023. Yet some banks look more resilient than others, and it may pay to emphasize those with quality over value-priced shares.

UBS


for one, favors quality banks in the U.S., according to a recent report. “Value matters most in a relatively homogeneous sector such as banks until there is a cyclical downturn,” writes Jaiwish Nolan, a UBS analyst and author of the report. “During these periods of uncertainty, we see a flight to quality among investors.”