Fifth Third: It Will (Likely) Take Time For The Story To Play Out

Summary:

- Fifth Third's stock has been a major disappointment so far in 2020 and a recovery will likely not happen over the next quarter or two.

- Fifth Third has promising business prospects but the bank will have to contend with several major near term headwinds.

- I am long Fifth Third, and I recently added to my position on the pullback.

Fifth Third Bancorp's ($FITB) stock performance has been lackluster for a significant period of time, and it has been pretty much the same story so far in 2020. To this point, FITB shares have underperformed the broader market by 26 percentage points over the first 2+ months of the current year

Poor investor sentiment for the financial sector (and I should note for good reason) has wreaked serious havoc on Fifth Third's stock price, and many other financial institutions, but I believe that this bank is properly positioned for the future. Yes, it will likely take time for Fifth Third's story to play out but that does not mean that investors should jump ship, especially at today's price.