< The 2015 All-America Research Team
Kenneth Usdin
Jefferies
First-place appearances: 2
Total appearances: 10
Analyst debut: 2006
Earning his tenth straight appearance on this roster, Kenneth Usdin rebounds from runner-up to reclaim third place. The Jefferies analyst is “a realist because he understands the numbers,” one fund manager observes. “Therefore he does not invest in the ‘hope’ trade — rather, he recommends real value with a recognized catalyst.” Usdin, 42, contends that “the fundamentals of the business are moving along at a decent clip, but we really need rates to move higher for the next leg of earnings expansion.” At this moment, he prefers a balanced portfolio approach, “with some exposure to rate-sensitive names but also some quality and some growth-valuation balance as well.” Huntington Bancshares is among his top picks. The analyst deems management at the Columbus, Ohio–based lender disciplined and able to deliver positive operating leverage annually, with a better chance than its peers of achieving its forward earnings-per-share estimates. In mid-September the stock traded at $10.36, 20.7 percent below his price objective of $12.50. Another favorite is Regions Financial Corp., “one of the more attractively valued names among regional banks and one that should prove to be more rate-sensitive when the [Federal Reserve] starts hiking,” Usdin says. He pegs the Birmingham, Alabama–based bank at $12, implying a 34.2 percent upside to its trading level at the middle of last month.