6. Zions Bancorporation
Shares of Zions Bancorporation (ZION) of Salt Lake City closed at $15. 50 Friday, down 36% year-to-date. Based on the mean price target of $21.23among analysts polled by FactSet, the shares have 37% upside potential.
Zions owes $1.4 billion TARP money.The company had $51.5 billion in total assets as of Sept. 30, and reported third-quarter earnings applicable to common shareholders of $65.2 million, or 35 cents a share, compared to a net loss of $80.5 million, or 47 cents, in the third quarter of 2010. The earnings improvement mainly reflected a decline in the provision for loan losses to just $14.6 million in the third quarter, compared to a provision of $184.7 million a year earlier. The company also reported other operating improvements, with net interest income increasing 4% year-over-year to $470.6 million in the third quarter, while noninterest income was up 10% year-over-year to $121 million, mainly because of a decline in derivative losses to $5.7 million in the third quarter, from $16.8 million in the third quarter of 2010. The third-quarter net interest margin was 3.99%, improving from 3.62% a year earlier. The third-quarter ROA was 0.84%, according to SNL Financial. Guggenheim Securities analyst Marty Mosby has a neutral rating on the shares, with a $16.50 price target, saying after the third-quarter results were reported in late October that "there are only two significant factors that could move ZION's operating earnings meaningfully over the next year or two: lower credit-related operating expenses (+$0.40) or an eventual reduction in capital cost (+$0.60). Both could take most of 2012 and 2013 before they could be realized." The shares trade for 9.4 times the consensus 2012 earnings estimate of $1.62 a share among analysts polled by FactSet, and for 0.8 times tangible book value, according to SNL. Out of 24 analysts covering Zions Bancorporation, 13 rate the shares a buy, nine have neutral ratings, and one analyst recommends selling the shares. Interested in more on Zions Bancorporation? See TheStreet Ratings' report card for this stock.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV