Investors looking for stocks in the Banks - Southwest sector might want to consider either First Horizon National (FHN) or Cullen/Frost Bankers (CFR). But which of these two stocks is more attractive to value investors?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
First Horizon Corporation's stock has risen over 20% in 2H '24, driven by better-than-expected financial performance, a broad re-rating among regional banks, and expectations for a more favorable political/regulatory environment. First Horizon is not well-placed for the immediate environment — weak loan growth, spread pressure, and ongoing tech investment is likely to drive below-peer core earnings growth in FY '25. Positives include strong (and counter-cyclical) capital markets operations, potential growth in mortgage lending, future operating leverage, and an attractive Southeast market footprint.
First Horizon and Citizens Financial are well-positioned to perform impressively in 2025 as the operating environment turns favorable.
FHN hits a new 52-week high of $21.01, driven by optimism surrounding Donald Trump's win in the U.S. presidential election and Fed rate cuts.
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First Horizon shares gained 66% over the past year, driven by strong recovery post-2023 banking crisis and solid financial performance. Q3 earnings beat expectations at$0.42 per share, driven by a 6% revenue increase and strong non-interest income growth. Despite margin compression, deposit repricing is expected to stabilize NIM by Q1 2025, supporting future earnings growth.
FHN's Q3 2024 earnings benefit from a rise in NII and fee income, alongside deposit growth. Yet, rising costs and declining loan balances remain concerns.
First Horizon Corporation (NYSE:FHN ) Q3 2024 Earnings Conference Call October 16, 2024 9:30 AM ET Company Participants Natalie Flanders - Head, Investor Relations Bryan Jordan - Chairman, President and Chief Executive Officer Hope Dmuchowski - Chief Financial Officer Thomas Hung - Deputy Chief Credit Officer Conference Call Participants Ebrahim Poonawala - Bank of America Michael Rose - Raymond James Jon Arfstrom - RBC Capital Jared Shaw - Barclays Capital Samuel Varga - UBS Chris McGratty - KBW Timur Braziler - Wells Fargo Christopher Marinac - J. Montgomery Scott Operator Good morning all and thank you for joining us for the First Horizon Third Quarter 2024 Earnings Conference Call.
Although the revenue and EPS for First Horizon (FHN) give a sense of how its business performed in the quarter ended September 2024, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.
First Horizon National (FHN) came out with quarterly earnings of $0.42 per share, beating the Zacks Consensus Estimate of $0.38 per share. This compares to earnings of $0.27 per share a year ago.
Besides Wall Street's top -and-bottom-line estimates for First Horizon (FHN), review projections for some of its key metrics to gain a deeper understanding of how the company might have fared during the quarter ended September 2024.