Zions Bancorporation (ZION): Taking a Fresh Look at Valuation After Recent Share Price Momentum
Zions Bancorporation National Association (ZION) has quietly pushed higher, with the stock up about 16% over the past month and roughly 9% year to date, signaling improving sentiment around regional banks.
See our latest analysis for Zions Bancorporation National Association.
That recent 15.9% 30 day share price return has helped the stock claw back from a softer spring, and with a 5 year total shareholder return of 66.9%, momentum now looks to be rebuilding rather than fading.
If Zions recent move has you rethinking your financials exposure, it could be worth scanning other fast growing stocks with high insider ownership that might be setting up for the next leg higher.
But with shares still trading at a steep discount to some intrinsic value estimates despite recent gains, is Zions a regional bank that the market is underappreciating? Or are investors already pricing in the next leg of earnings growth?
Most Popular Narrative Narrative: 4.7% Undervalued
With Zions Bancorporation National Association last closing at $59.15 versus a narrative fair value of about $62.09, the storyline leans toward modest upside and improving fundamentals.
The ongoing investment in digital capabilities including a modern, AI enabled core banking platform positions Zions to capitalize on increasing demand for efficient, tech driven banking services, lowering operational costs and improving the efficiency ratio, which should drive net margin expansion. Robust loan growth, particularly in commercial and small business sectors, is being supported by positive demographic and economic trends in the Mountain West and Southwest, leading to a larger addressable customer base and sustained increases in both net interest income and fee based revenues.
Curious how modest growth assumptions, slightly thinner margins, and a richer future earnings multiple still add up to upside from here? The narrative’s full math might surprise you.
Result: Fair Value of $62.09 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, persistent regional CRE risks and rising regulatory costs could quickly erode today’s margin optimism and challenge the case for multiple expansion.
Find out about the key risks to this Zions Bancorporation National Association narrative.
Build Your Own Zions Bancorporation National Association Narrative
If you see the story differently or want to stress test the numbers yourself, you can build a tailored view in just minutes by using Do it your way.
A good starting point is our analysis highlighting 4 key rewards investors are optimistic about regarding Zions Bancorporation National Association.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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