Zions Bancorporation, National Association (ZION) Gets Some Respect

Zions Bancorporation, National Association (NASDAQ:ZION) is now being followed by Argus, as they initiated the stock at Buy on December 17. Analysts at Piper Jaffray, shed their negative views on November 07 by lifting it fromNeutral to Overweight. The stock lost favor of UBS analysts who expressed their lack of confidence in it using a downgrade from Buy to Neutral on September 07. Wedbush, released new analyst coverage on May 15, calling the stock is Neutral.

ZION stock dropped -0.08% in recent trade and currently has a stock-market value of $9.14B. The shares finished at $49.08, after trading as low as $48.83 earlier in the session. It hit an intraday high Thursday at $49.38. Trading activity significantly improved as the volume at ready counter increased to 2,431,580 shares versus 2,220,605 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 2,576,804 shares. The stock is now 28.89% above against its bear-market low of $38.08 on December 26, 2018. It has retreated -20.6% since it’s 52-week high of $59.19 reached in May. Now the market price is down -11.96% on the year and up 20.47% YTD.

Wall Street’s most bullish Zions Bancorporation, National Association (NASDAQ:ZION) analysts are predicting the share price to blow past $69 per share during the next 12 months. The current median share price forecast by them is $59, suggesting that the stock could increase 20.21% in that time frame. The average price target of $58.96 calls for a nearly 20.13% increase in the stock price.

Zions Bancorporation, National Association (ZION)’s 50 day simple moving average (SMA 50) price is $48.02 and its 200-day simple moving average (SMA 200) price is $49.97. The company’s stock currently has a total float of 183.72M shares. Its weekly volatility is hovering around 1.28% and felt 1.77% volatility in price over a month. On the upside, the share price will test short term resistance at around $49.36. On a downside, the stock is likely to find some support, which begins at $48.81. The failure to get near-term support could push it to $48.55.

When looking at valuations, Zions Bancorporation, National Association (ZION) has a cheap P/E of 12.02x as compared to industry average of 18.98x. Moreover, it trades for 10.21 times the next 12 months of expected earnings. Also, it is trading at rather expensive levels at just over 1.32x price/book and 3.68x price/sales. Compared to others, Zions Bancorporation, National Association is in a different league with regards to profitability, having net margins of 34%. To put some perspective around this, the industry’s average net margin is 29.84%. ZION’s ROE is 12%, which is also considerably worse than the industry’s ROE of 16.12%.

Shares of ZION have gained 5.6% since the company’s most recent earnings report. Over the past 12 fiscal quarters, Zions Bancorporation, National Association (NASDAQ:ZION) has topped consensus earnings estimates in 9 quarters (75%), missed earnings in 2 quarters (16%), whereas at 1 occasion EPS met analyst expectations. ZION last reported earnings that exceeded expectations. The company raked in $1.08 per share, -58.94% change on the same period last year. That was better than consensus for $1.05. Revenue for the recent quarter stood at $716 million, up 8% on last year and above the $713.54 million predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $706.7 million to $726 million, which should be compared with $700.47 million generated last year. EPS is seen in a range of $0.96 to $1.09, against the $0.92 reported a year ago.