Once viewed as one of the country's best-managed banks, Fifth Third wrecked its reputation in recent years by overpaying for acquisitions and making bad investment decisions. Its stock, now around $10, trades just above tangible book. St. Pierre thinks Fifth Third could earn $2.35 a share in 2010 after making 70 cents in '09, and he carries a price target of $17.

Milwaukee-based Marshall & Ilsley also has been stung by construction lending. Its shares, at around 18, trade at 1.1 times tangible book value. St. Pierre thinks it will earn $1.44 in 2009 and $2.75 in 2010.

While the elite of PNC, Wells Fargo, US Bancorp and JPMorgan have done well, there appear to be better values in the financial sector, including regionals like Fifth Third (FITB), Marshall & Ilsley (MI), KeyCorp (KEY) and Synovus (SNV). Outside banking, battered life insurers beckon, including Prudential Financial (PRU) and MetLife (MET), both of which trade below book value. While insurers are exposed to weak markets through huge investment portfolios, they don't have banks' leverage -- or risks.

St. Pierre is bullish on several depressed regionals, including Synovus, Marshall & Ilsley and Fifth Third, which all trade near their tangible book values: "2009 is going to be a tough earnings year for all these banks. You have to value them on tangible book value and 2010 earnings," he says. Georgia-based Synovus, now around 10, could earn over 90 cents a share in 2010 after just 25 cents in 2009, St. Pierre estimates. It has a poorly performing portfolio of construction loans, but a desirable franchise in Georgia and Florida.

While the elite of PNC, Wells Fargo, US Bancorp and JPMorgan have done well, there appear to be better values in the financial sector, including regionals like Fifth Third (FITB), Marshall & Ilsley (MI), KeyCorp (KEY) and Synovus (SNV). Outside banking, battered life insurers beckon, including Prudential Financial (PRU) and MetLife (MET), both of which trade below book value. While insurers are exposed to weak markets through huge investment portfolios, they don't have banks' leverage -- or risks.

While the elite of PNC, Wells Fargo, US Bancorp and JPMorgan have done well, there appear to be better values in the financial sector, including regionals like Fifth Third (FITB), Marshall & Ilsley (MI), KeyCorp (KEY) and Synovus (SNV). Outside banking, battered life insurers beckon, including Prudential Financial (PRU) and MetLife (MET), both of which trade below book value. While insurers are exposed to weak markets through huge investment portfolios, they don't have banks' leverage -- or risks.

Property-and-casualty insurance stocks got a lift recently amid expectations of an end to the slide in commercial premiums. Yet, Allstate (ALL) and The Travelers Companies (TRV) still trade at or under book value, while two of the strongest insurers, Ace (ACE) and Chubb (CB), trade at modest premiums to book and at less than 10 times projected 2009 profits. Depressed asset managers like Franklin Resources (BEN) and AllianceBernstein (AB) trade for 10 to 15 times projected 2009 profits.

Property-and-casualty insurance stocks got a lift recently amid expectations of an end to the slide in commercial premiums. Yet, Allstate (ALL) and The Travelers Companies (TRV) still trade at or under book value, while two of the strongest insurers, Ace (ACE) and Chubb (CB), trade at modest premiums to book and at less than 10 times projected 2009 profits. Depressed asset managers like Franklin Resources (BEN) and AllianceBernstein (AB) trade for 10 to 15 times projected 2009 profits.