I know that bank stocks nowadays are very scary, but, on the other hand, I think that they’re undervalued on the long run.

A bank stock that I think is a good stock is UBS, and here’s why:

– UBS is the largest bank in Switzerland (the second largest in Switzerland is Credit Suisse). Switzerland is a country that, despite all the financial and political turmoil in the world, remained strong, and the Swiss Franc is one of the most attractive currencies nowadays (along with the Canadian Dollar and the Japanese Yen).

– In most cases, the movement of the UBS stock is determined by the movement of the financials in the stock market, and not by some company news.

– The stock is trading at a P/E of only 7.23, meaning that even in today’s harsh times, it will take UBS just over 7 years to pay back all the investors.

– UBS (the bank) is actually making money, and is not faced by a myriad of scandals, new regulations, and bad news every other day.

– At the current price of $14.72, the stock is trading 9% below its book value of $16.13. OK, I know that BAC is trading at less than 60% of its book value, but Bank of America has a lot of problems, and is a stock that most investors hate/dread.

I do not only think that UBS is a good stock, I think it’s an excellent stock, and I think it’s way undervalued. In these very bad times for financials, its price should be at least 10 P/E, which is $20. In normal times it should trade at 20 P/E (or $40).

Even if you’re thinking short term, I think you should consider buying UBS, for this stock is probably the best of bank stocks at the current times.