Consistency Carrying Commerce Bancshares

I believe that at least part of the reason that investors are willing to bid up Commerce Bancshares (NASDAQ:CBSH) to above-average multiples is that this bank is built to weather the ups and downs of normal banking cycles without much drama. And so it would seem to be the case in the fourth quarter as well, as the bank continues to see solid, but not spectacular, results.

Commerce shares are up a bit from my last update, outperforming peers in a market where there is still a lot of angst as to what banking earnings will look like in 2023 due to rising deposit costs and more limited operating leverage prospects. As much as it surprises me to say this, I don't find the valuation all that bad, at least relative to what passes for normal with Commerce, and while I can't really recommend it wholeheartedly as a bank stock likely to generate substantial outperformance, I think it is a name for investors who want less drama and volatility.

 

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Consistency Carrying Commerce Bancshares