First Horizon Shares Weaker On A Less Distinguished Third Quarter

First Horizon (FHN) still doesn't seem to be getting its due, but arguing with the market only gets you so far in the short term. Although the shares had done slightly better than the peer group going into the quarter, a sell-off on the earnings report has pulled the relative performance back to the peer group.

I continue to believe that First Horizon has some useful near-term offsets to spread pressure, including a counter-cyclical trading business and cost leverage, and I like the long-term ramifications of a management team that is keenly focused on out-earning its cost of capital in all parts of the business. These shares could languish without beat-and-raise quarters, but I believe they trade at a double-digit discount to fair value and offer appeal for more patient investors.

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First Horizon Shares Weaker On A Less Distinguished Third Quarter