Ashleigh Rogers
Long/short equity, growth at reasonable price, value, banks

Zions BanCorp Is Cheap But It Has A Revenue Problem

Western regional bank Zions BanCorp (NASDAQ:ZION) is a powerhouse in Utah and the Southwest, with nearly 500 branches. But unfortunately for the bank and its shareholders, neither a wide-spread branch network nor a resurgent housing economy in the area has been enough to pull the banks revenues out of their tailspin. In fact, much of its earnings power over the last three years has been the result of reserves releases, while revenues have actually fallen consistently since 2009. While ZION is fairly cheap, trading at around 1.3X tangible book value and 15X my forward EPS estimate of $1.98, the bank is not so cheap that it's a good investment (especially given the alternatives out there in the financial...

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