We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Here's How Much You'd Have If You Invested $1000 in Regions Financial a Decade Ago
Read MoreHide Full Article
For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.
Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.
What if you'd invested in Regions Financial (RF - Free Report) ten years ago? It may not have been easy to hold on to RF for all that time, but if you did, how much would your investment be worth today?
Regions Financial's Business In-Depth
With that in mind, let's take a look at Regions Financial's main business drivers.
Regions Financial Corporation is a Birmingham, AL-based financial holding company, providing retail and commercial and mortgage banking, as well as other financial services in the asset management, wealth management, securities brokerage, trust services, merger and acquisition advisory services and other specialty financing. As of Jun 30, 2021, Regions Financial operated 1,313 banking offices and 2,000 ATMs across a 16-state network over the South, Midwest and Texas.
The company has five business segments.
The Corporate Bank (44% of total average assets as of Dec 31, 2020) segment includes the company’s commercial banking functions including commercial and industrial, commercial real estate, investor real estate lending and equipment lease financing.
The Consumer Bank (25%) segment comprises the company’s branch network, including consumer banking products and services as well as the corresponding deposit relationships.
The Wealth Management (2%) segment consists of wealth management products and services. This segment provides services such as investment advice, assistance in managing assets and estate planning to individuals and institutional clients.
Other (29%) includes the company’s treasury function, the securities portfolio, wholesale funding activities, interest rate risk management activities and other corporate functions that are not related to a strategic business unit.
Notably, another segment – Discontinued Operations constitutes all brokerage and investment activities associated with Morgan Keegan, which was sold in April 2012 and the sale of Regions Insurance Group, Inc. and related affiliates, which closed on Jul 2, 2018.
In April 2020, the company acquired equipment finance lender, Ascentium Capital LLC, from Warburg Pincus. Also, in August 2019, Regions Financial closed acquisition of Highland Associates — a leading institutional investment firm. In July 2018, it completed the divesture of Regions Insurance Group to BB&T Insurance Holdings — a wholly owned subsidiary of BB&T Corporation.
Bottom Line
While anyone can invest, building a lucrative investment portfolio takes research, patience, and a little bit of risk. If you had invested in Regions Financial ten years ago, you're probably feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in September 2011 would be worth $6,027.70, or a gain of 502.77%, as of September 28, 2021, and this return excludes dividends but includes price increases.
Compare this to the S&P 500's rally of 278.01% and gold's return of 1.87% over the same time frame.
Analysts are anticipating more upside for RF.
Regions Financial’s attractive core businesses are likely to aid its profitability in the quarters ahead. Further, the company has an impressive earnings surprise history. Its earnings surpassed the Zacks Consensus Estimate in all of the trailing four quarters. Apart from its inorganic growth strategies, cost-control initiatives act as a tailwind. Investments in people, process and technology will likely boost its growth prospects. Decent loan growth backed by the resumption of business activities is likely to support interest income in the quarters ahead. However, shares of Regions Financial have underperformed the industry over the past year. Pressure on margin due to low rates is likely to hamper top-line growth. Regions Financial’s major exposure to commercial loans and rising expense base keep us apprehensive in the near term.
Over the past four weeks, shares have rallied 6.98%, and there have been 4 higher earnings estimate revisions in the past two months for fiscal 2021 compared to none lower. The consensus estimate has moved up as well.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Here's How Much You'd Have If You Invested $1000 in Regions Financial a Decade Ago
For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.
Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.
What if you'd invested in Regions Financial (RF - Free Report) ten years ago? It may not have been easy to hold on to RF for all that time, but if you did, how much would your investment be worth today?
Regions Financial's Business In-Depth
With that in mind, let's take a look at Regions Financial's main business drivers.
Regions Financial Corporation is a Birmingham, AL-based financial holding company, providing retail and commercial and mortgage banking, as well as other financial services in the asset management, wealth management, securities brokerage, trust services, merger and acquisition advisory services and other specialty financing. As of Jun 30, 2021, Regions Financial operated 1,313 banking offices and 2,000 ATMs across a 16-state network over the South, Midwest and Texas.
The company has five business segments.
The Corporate Bank (44% of total average assets as of Dec 31, 2020) segment includes the company’s commercial banking functions including commercial and industrial, commercial real estate, investor real estate lending and equipment lease financing.
The Consumer Bank (25%) segment comprises the company’s branch network, including consumer banking products and services as well as the corresponding deposit relationships.
The Wealth Management (2%) segment consists of wealth management products and services. This segment provides services such as investment advice, assistance in managing assets and estate planning to individuals and institutional clients.
Other (29%) includes the company’s treasury function, the securities portfolio, wholesale funding activities, interest rate risk management activities and other corporate functions that are not related to a strategic business unit.
Notably, another segment – Discontinued Operations constitutes all brokerage and investment activities associated with Morgan Keegan, which was sold in April 2012 and the sale of Regions Insurance Group, Inc. and related affiliates, which closed on Jul 2, 2018.
In April 2020, the company acquired equipment finance lender, Ascentium Capital LLC, from Warburg Pincus. Also, in August 2019, Regions Financial closed acquisition of Highland Associates — a leading institutional investment firm. In July 2018, it completed the divesture of Regions Insurance Group to BB&T Insurance Holdings — a wholly owned subsidiary of BB&T Corporation.
Bottom Line
While anyone can invest, building a lucrative investment portfolio takes research, patience, and a little bit of risk. If you had invested in Regions Financial ten years ago, you're probably feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in September 2011 would be worth $6,027.70, or a gain of 502.77%, as of September 28, 2021, and this return excludes dividends but includes price increases.
Compare this to the S&P 500's rally of 278.01% and gold's return of 1.87% over the same time frame.
Analysts are anticipating more upside for RF.
Regions Financial’s attractive core businesses are likely to aid its profitability in the quarters ahead. Further, the company has an impressive earnings surprise history. Its earnings surpassed the Zacks Consensus Estimate in all of the trailing four quarters. Apart from its inorganic growth strategies, cost-control initiatives act as a tailwind. Investments in people, process and technology will likely boost its growth prospects. Decent loan growth backed by the resumption of business activities is likely to support interest income in the quarters ahead. However, shares of Regions Financial have underperformed the industry over the past year. Pressure on margin due to low rates is likely to hamper top-line growth. Regions Financial’s major exposure to commercial loans and rising expense base keep us apprehensive in the near term.
Over the past four weeks, shares have rallied 6.98%, and there have been 4 higher earnings estimate revisions in the past two months for fiscal 2021 compared to none lower. The consensus estimate has moved up as well.