Long-established in the Banks industry, Zions Bancorp NA (ZION, Financial) has enjoyed a stellar reputation. However, it has recently witnessed a decline of 3.04%, juxtaposed with a three-month change of 18.05%. Fresh insights from the GuruFocus Score Rating hint at potential headwinds. Notably, its diminished rankings in financial strength, growth, and valuation suggest that the company might not live up to its historical performance. Join us as we dive deep into these pivotal metrics to unravel the evolving narrative of Zions Bancorp NA.
Decoding the GF Score
The GF Score is a stock performance ranking system developed by GuruFocus using five aspects of valuation, which has been found to be closely correlated to the long-term performances of stocks by backtesting from 2006 to 2021. The stocks with a higher GF Score generally generate higher returns than those with a lower GF Score. Therefore, when picking stocks, investors should invest in companies with high GF Scores. The GF Score ranges from 0 to 100, with 100 as the highest rank.
- 1. Financial strength rank: 5/10
- 2. Profitability rank: 6/10
- 3. Growth rank: 4/10
- 4. GF Value rank: 8/10
- 5. Momentum rank: 2/10
Based on the above method, GuruFocus assigned Zions Bancorp NA the GF Score of 69 out of 100, which signals poor future outperformance potential.
Understanding Zions Bancorp NA's Business
Zions Bancorporation is a regional U.S. bank with core operations that span 11 states. The bank is headquartered in Salt Lake City and does business primarily in the Western and Southwestern United States. Zions primarily focuses on providing banking services to small and midsize businesses, with the majority of its loans focused on commercial and commercial real estate lending. With a market cap of $5.19 billion and sales of $3.32 billion, the company's operating margin is currently not applicable.
Financial Strength Breakdown
Zions Bancorp NA's financial strength indicators present some concerning insights about the company's balance sheet health. The financial strength rank of 5/10 suggests that the company may face challenges in maintaining its financial stability, which could impact its future performance.
Growth Prospects
A lack of significant growth is another area where Zions Bancorp NA seems to falter, as evidenced by the company's low Growth rank of 4/10. This indicates that the company's growth potential may be limited, which could affect its ability to generate higher returns for investors.
Lastly, Zions Bancorp NA's predictability rank is just one star out of five, adding to investor uncertainty regarding revenue and earnings consistency.
Conclusion
Given the company's financial strength, profitability, and growth metrics, the GuruFocus Score Rating highlights Zions Bancorp NA's potential for underperformance. While the company has a strong reputation in the banking industry, its current financial and growth indicators suggest that it may struggle to maintain its historical performance. Therefore, investors should exercise caution when considering this stock for their portfolio.
GuruFocus Premium members can find more companies with strong GF Scores using the following screener link: GF Score Screen
