Comerica Frostbitten As Wall Street Turns Cold On Bank Stocks

Although I thought Comerica’s (CMA) valuation was a little stretched back in the summer, I thought at the time that it offered the market a lot of what investors wanted. Turns out, those investors have changed their minds about what they want, and in a big way, sending the shares down about a quarter over the past six months. If there’s a bright side to that, it’s that Comerica’s fall hasn’t been much worse than the average retail bank, and there have been a fair few to do worse over that time.

Ongoing weak loan growth and the prospect of peaking rate, credit, and cost leverage has soured the Street on banks heading into what is likely to be an economically less impressive 2019. That, in turn, has led to some pretty startlingly revaluations across the sector. I can’t say that Comerica is my favorite bank idea, but the valuation and business drivers definitely support a closer look.

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Comerica Frostbitten As Wall Street Turns Cold On Bank Stocks