The market's shift to a risk-on position toward banks has helped a number of riskier bank stocks (or bank stocks perceived as riskier), and First Horizon (FHN) has benefited, rising a little more than 30% since my last update - good enough for a modest beat relative to its larger peer group, but not good enough to match other regional competitors like Pinnacle (PNFP) and Regions (RF). Over that time, expectations for '21 have definitely improved, but First Horizon still doesn't seem to be getting full credit for its growth and profitability improvement potential.
Admittedly, investing in "potential" always carries risk, but if you wait to see that potential become reality, you typically miss most of the market-beating performance potential. To that end, while First Horizon absolutely still needs to prove that they can achieve above-average growth in a highly competitive market and at least peer-average profitability, management has already made progress on its underwriting, and I believe the annualized total return potential here is still comfortably in the double digits, making First Horizon still very much a name worth buying/owning.
Read more here:
First Horizon Still Undervalued With Wall Street In Show Me Mode
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