Five U.S. banks and thrifts were trading at least 40% below analysts' mean one-year price targets as of May 31.

Detroit-based Chemical Financial Corp., which agreed to a merger of equals with TCF Financial Corp. on Jan. 28, was trading 44.1% below its mean price target at the end of May, the largest discount in the industry.

The company's stock has lost around 15% since it announced the transaction, but seven of the eight analysts covering the stock still have a buy recommendation.

Pasadena, Calif.-based East West Bancorp Inc. was trading 43.6% below its mean one-year price target as of May 31. The company's stock has lost over a third of its value in the last 12 months, compared to a median loss of 15.4% for the broader industry. Eleven of the 13 analysts covering the company recommend buying the stock.

Meanwhile, four bank and thrift stocks were trading above analysts' mean one-year price target as of May 31.

Franklin, N.C.-based Entegra Financial Corp. was trading 8.1% above its one-year price target, the largest premium of any company in the analysis. The bank's shares have gained 4% over the last 12 months, and two of the three analysts covering the company currently have a buy recommendation. In April, Entegra dropped its planned merger of equals with SmartFinancial Inc. to instead sell for a higher price to First-Citizens Bank & Trust Co.

In this analysis, S&P Global Market Intelligence considered major exchange-traded U.S. bank and thrift stocks trading in relation to mean one-year analyst price targets as of May 31. Only stocks covered by at least three analysts and trading above $5 per share at the end of May were included.

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