Zions Bancorporation reported a decent second quarter. Net interest income trends were strong, loan growth trends were robust, but credit trends were mixed. Overall, there was little that would alter our long-term view of the firm, and we will maintain our fair value estimate of $56 and no-moat rating.
Zions is priced like a distressed asset. It would not take much to exceed the current expectations being priced into the stock.
There are few positive catalysts left for banks. Funding costs are running higher, net interest income has likely peaked, higher regulatory scrutiny is likely, and a recession may be around the corner.
|
Metric
|
ZION
|
CMA
|
BAC
|
|---|---|---|---|
Price/Earnings (Normalized) | 11.34 | 8.84 | 13.96 |
Price/Book Value | 1.38 | 1.23 | 1.21 |
Price/Sales | 2.57 | 2.18 | 3.39 |
Price/Cash Flow | 8.03 | 10.59 | 9.04 |
|
Metric
|
ZION
|
CMA
|
BAC
|
|---|---|---|---|
Quick Ratio | — | — | — |
Current Ratio | — | — | — |
Interest Coverage | — | — | — |
|
Metric
|
ZION
|
CMA
|
BAC
|
|---|---|---|---|
Return on Assets (Normalized) | 0.85% | 0.93% | 0.92% |
Return on Equity (Normalized) | 14.84% | 14.41% | 11.28% |
Return on Invested Capital (Normalized) | — | — | — |
|
1-Day Chart
|
Name
|
Price
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
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