Why $93 Is An Important Level In PNC Financial ServicesBack in December, PNC shares tried on several occasions to make a move above the $93 level, but inevitably ended correcting to $82. Now PNC has once again made another rally, now trading just below the key resistance level. This is not the time to be buying the stock, but is the time to be waiting for a close above $93 to make a bullish trade. If it does happen look for a run to $100 and likely to a completion of the measured move to $104 ($93-$82=$11+$93=$104) in the longer-term.
Even though PNC is near all-time highs currently, shares only trade at a P/E ratio of 11.73x (2016 estimates) with 8.7% EPS growth, P/S ratio of 3.22x, and a P/B ratio of 1.20x. Revenue growth is likely to come back next year to the tune of 6% (north of $16B for the year).
Potential Options Trade Idea (if the stock closes above $93): Buy the Aug $92.50/$100 bull call spread for a $3.00 debit or better.
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