Zions Bancorp NA (ZION, Financial), a regional U.S. bank with core operations spanning 11 states, has seen a significant surge in its stock price over the past three months. As of September 12, 2023, the company's stock price has risen by 21.53%, marking a notable gain for the bank. This article aims to provide a comprehensive analysis of Zions Bancorp's recent stock performance, profitability, growth, and its position within the banking industry.
Stock Performance Analysis
With a market cap of $5.42 billion and a current price of $36.58, Zions Bancorp has demonstrated a robust performance in the stock market. Over the past week, the company's stock price has seen a gain of 0.55%. More impressively, over the past three months, the stock price has surged by 21.53%. According to the GF Value, a measure of a stock's intrinsic value defined by GuruFocus.com, Zions Bancorp is significantly undervalued. The current GF Value stands at $63.98, compared to $64.52 three months ago, indicating a potential for further growth.
Profitability Overview
Zions Bancorp's profitability is commendable, with a Profitability Rank of 6/10 as of June 30, 2023. The company's Return on Equity (ROE) is 17.13%, better than 83.41% of 1447 companies in the Banks industry. The Return on Assets (ROA) is 1.00%, outperforming 52.24% of 1451 companies in the same industry. Furthermore, Zions Bancorp has maintained profitability for the past ten years, a feat achieved by only 0.07% of 1461 companies in the industry.
Growth Prospects
Despite the challenging economic environment, Zions Bancorp has demonstrated solid growth. The company's Growth Rank stands at 4/10. Over the past three years, the company's revenue growth rate per share has been 11.30%, better than 72.84% of 1399 companies in the Banks industry. Over the past five years, the revenue growth rate per share has been 10.90%, outperforming 77.8% of 1347 companies in the same industry. However, the company's future total revenue growth rate estimate is a modest 0.37%, and the future EPS without NRI growth rate estimate is -6.90%.
Major Stock Holders
Among the top holders of Zions Bancorp's stock are renowned investors Jim Simons (Trades, Portfolio), Louis Moore Bacon (Trades, Portfolio), and Joel Greenblatt (Trades, Portfolio). Jim Simons (Trades, Portfolio) holds the largest number of shares, with 671,795 shares, representing 0.45% of the total shares. Louis Moore Bacon (Trades, Portfolio) holds 477,771 shares, accounting for 0.32% of the total shares. Joel Greenblatt (Trades, Portfolio) holds a smaller stake, with 11,336 shares, representing 0.01% of the total shares.
Competitive Landscape
Zions Bancorp operates in a competitive industry, with major competitors including Pinnacle Financial Partners Inc (PNFP, Financial), Prosperity Bancshares Inc (PB, Financial), and SouthState Corp (SSB, Financial). These companies have similar market caps, with Pinnacle Financial Partners and Prosperity Bancshares both at $5.21 billion, and SouthState Corp at $5.29 billion.
Conclusion
In conclusion, Zions Bancorp has demonstrated strong stock performance, profitability, and growth in recent months. Despite facing stiff competition in the banking industry, the company has managed to maintain a solid position. With a GF Value indicating that the stock is significantly undervalued, there may be potential for further growth. However, investors should also consider the company's modest future revenue growth rate estimate and negative future EPS growth rate estimate when making investment decisions.
