A Sour Sentiment Toward First Horizon Could Mean Opportunity

"Worse than Wells Fargo (WFC)" isn't a title anybody wants to hold or share these days, but First Horizon's (FHN) share price performance over the past year and year-to-date does have it trailing that larger scandal-plagued rival. Granted, other similarly-sized banks like Signature (SBNY) and FNB (FNB) have been no great shakes over the past year either, but investors really didn't like what they heard from this Tennessee-based mid-cap bank this quarter.

I think this could be an opportunity for long-term investors to consider First Horizon, but the next few quarters could make for a tough holding period, as it is hard to see what would really drive a meaningful turn in performance or sentiment. First Horizon is a well-placed Southeastern bank active in most of the attractive, major MSAs, and one with a good net beta and specialty lending franchise, but the current performance trajectory isn't getting the job done and the valuation isn't so cheap that it's a can't-miss prospect.

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A Sour Sentiment Toward First Horizon Could Mean Opportunity