First Horizon's Footprint And Business Mix Should Drive Long-Term Growth

With good strategic positioning across the Southeast U.S., deal synergies, a respectable specialized lending business, and an asset-sensitive balance sheet, First Horizon (FHN) looks well-placed to deliver good growth so long as the economic cycle stays positive. That makes a softer than expected first quarter a little easier to digest, though investors should keep an eye on the competitive factors pushing up deposit betas and the still-sluggish overall environment for loan demand.

First Horizon looks priced for high single-digit to low double-digit annualized returns, which isn't bad, but I like to pay $0.90 (or less) for a dollar of value and bank stocks are no exception. To that end, there are cheaper bank stocks that I'd favor today, but First Horizon deserves a spot on a watch list and certainly doesn't seem like a bad hold now.

Click here for the full article:
First Horizon's Footprint And Business Mix Should Drive Long-Term Growth