From the vast universe of banking stocks, today we pick First Horizon National Corporation (FHN - Free Report) for you. The company offers a profitable investment opportunity based on inorganic growth expansion and robust fundamentals.
The company has been witnessing upward estimate revisions, reflecting analysts’ optimism about its earnings growth potential. Over the past 60 days, the Zacks Consensus Estimate for 2019 and 2020 has displayed an upward trend.
Further, this Zacks Rank #2 (Buy) stock has gained 16.4%, year to date, compared with the industry’s growth of 6.2%.
Why is First Horizon an Attractive Pick?
Earnings Strength: First Horizon recorded an earnings growth rate of 13% over the last three to five years. Retaining the earnings momentum, the earnings growth rate is anticipated to be around 12.8% for the current year and around 2.5% for 2020. Good news is that the company generated an average positive earnings surprise of around 2.7%, over the trailing four quarters.
Strategic Moves: First Horizon has executed several strategic repositioning efforts to improve the company’s long-term profitability after being severely affected by its exposure to national mortgage and construction lending, and focused on growing its core Tennessee banking franchise. Also, the company was involved in a number of acquisitions, which greatly diversified its product offerings, and strengthened footprint in the Carolina and Florida markets.
Superior Return on Equity (ROE): First Horizon’s ROE of 10.14%, compared with the industry’s 9.80% average, highlights the company’s commendable position over its peers.
Stock Looks Undervalued: The stock currently has a Value Score of A. The Value Score condenses all valuation metrics into one actionable score that helps investors steer clear of “value traps” and identify stocks that are truly trading at a discount. Our research shows that stocks with a Style Score of A or B, when combined with a Zacks Rank #1 (Strong Buy) or 2, offer the best upside potential.
Other Stocks to Consider
T. Rowe Price Group, Inc. (TROW - Free Report) has been witnessing upward estimate revisions for the past 60 days. Moreover, this Zacks #1 Ranked stock has rallied more than 14% year to date. You can see the complete list of today’s Zacks #1 Rank stocks here.
AllianceBernstein Holding L.P. (AB - Free Report) has been witnessing upward estimate revisions for the past 60 days. Further, the company’s shares have gained 1.4% year to date. At present, it carries a Zacks Rank of 2.
Ameriprise Financial, Inc. (AMP - Free Report) has been witnessing upward estimate revisions for the past 60 days. Additionally, the stock has jumped around 19.3% year to date. It currently holds a Zacks Rank #2.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
See their latest picks free >>