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Comerica (CMA) Riding High on Fundamentals: Time to Buy?

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On Mar 21, we issued an updated report on Comerica Incorporated (CMA - Free Report) . The company has benefited from its GEAR Up initiative which aims to drive long-term efficiency. Also, its involvement in capital deployment activities encourages us. However, its exposure in the stressed energy sector remains a headwind.

The company’s shares increased 42.0% over the last six months compared with the Zacks categorized Bank-Major Regional industry’s rally of 26.9%. Also, its current-year earnings estimates have been revised 1.7% upward over the last 30 days.



Initiatives like GEAR Up are expected help Comerica in achieving a double-digit return on equity and enhance shareholders’ value. Also, the company has been involved in capital deployment activities, such as share buybacks, which reflect its capital strength.

Further, Comerica raised its prime lending rate on Mar 15, following the latest Fed interest rate hike. This should help release the pressure on the marginsand improve the financials of the company.

Nevertheless, the company’s significantproportion of energy related loans in its loan portfolio keep us apprehensive. Also, the strict regulatory environment continues to result in increased costs and fees.

Currently, Comerica carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Some other favorably ranked stocks in the finance space worth consideringinclude Bank of America Corporation (BAC - Free Report) , Lazard Ltd (LAZ - Free Report) and Apollo Global Management, LLC (APO - Free Report) . All these stocks carry Zacks rank #2 (Buy).

Bank of America has witnessed an upward earnings estimate revision of 1.2% for the current year, in the last 60 days. Its share price rose over 47.6% in the last six months.

Lazard’s current year earnings estimates have revised 2.9% upwards for the last 60 days. Its share price increased 20.3%, in the last six months.

Apollo Global witnessed an upward earnings estimate revision of 9.8% for the current year, in the last 60 days. Its share price rose 29.7% in the last six months.

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