ALLEGAN, Mich., Oct. 29 /PRNewswire/ -- FinStrata announces its third quarter 2010 rank-to-returns results. The study, based on the firm's fundamentals-based rankings of 800 listed banking companies, shows that average stock market returns of the FinStrata Select Listed US Banks 200 have consistently outperformed returns of lower-ranked banks.
The quarterly rankings, available at FinStrata.com, rank the 800 largest listed U.S. banking companies from strongest to weakest, based on twenty measures of asset quality, capital adequacy, liquidity, and profitability. Each quarter, FinStrata compares the market performance of the Select 200 and the remaining 600 ranked banks.
A theoretical $1,000 investment in the Select 200 on January 1, 2008 would be worth $951 at September 30, 2010. The same investment in banks ranked 201 to 400 would average $843. Banks ranked 401 to 600 would have returned an average of $683 to their shareholders. The $1,000 investment in the lowest ranking banks, ranked 601 to 800, would be worth only $413 today. Returns are based on quarterly stock price changes and dividend yield. A graph depicting these returns over time is available.
The Select 200 also outperforms other ranked banks in shorter-term market returns. The Select 200's average return for the four quarters ended September 30 was 6.49%, which compares to an average return of -3.59% for the remaining 600 banks in the rankings.
FinStrata's Select Listed US Banks 200 are FinStrata's highest-ranking, actively traded listed banks. FinStrata identifies the Select 200 based on their six-quarter average ranks in the Listed 800 group, excluding any bank whose stock was not actively traded during all six ranking periods. The remaining 600 banks are ranked 201-800 regardless of trading activity. Rankings details are available to FinStrata subscribers.
FinStrata's principal, Carol Doeringer, points out that FinStrata's bank rankings highlight companies whose stronger fundamentals have delivered the best response to today's turbulent banking environment. FinStrata's rankings give subscribers an edge by enabling them to identify higher-performing banking companies based on a systematic composite rankings method they won't find anywhere else. To subscribe, visit http://www.finstrata.com. For information, e-mail email@example.com or call (269) 906-9223.
SOURCE FinStrata, LLC