Comerica Could Be Assembling The Pieces For Better Long-Term Returns

Short-term success in investing is often down to an investor's ability to read and predict sentiment, but longer-term success is usually tied to understanding businesses and their sectors and figuring out which companies have the mettle to rise to the top over time. I mention this as an open to a discussion on Comerica (NYSE:CMA), because I think there may be changes underway in the operating philosophy of this bank that could lead to better, more consistent, performance over time and a sustainably higher multiple for the shares.

Since my last update, wherein I thought the performance prospects of the shares were good but not great, the stock has fallen about 12% - a fairly average performance on balance. At this point, though, I'm getting more interested in the shares. There are a lot of banks trading too cheaply ahead of what I expect will be strong earnings in FY'23, but if Comerica can in fact make some positive adjustments to its operating strategy, I think there's a better case for long-term ownership.

 

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Comerica Could Be Assembling The Pieces For Better Long-Term Returns