This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

10 Bank Stocks With Up to 154% Upside for 2012

Stocks in this article: BAC C JPM BK BPOP ZION FCF TFSL PSTB METR WBCO

6. Zions Bancorporation

Shares of Zions Bancorporation (ZION - Get Report) 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.

6 of 11

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,378.31 -38.54 -0.22%
S&P 500 2,015.56 -5.69 -0.28%
NASDAQ 4,678.8850 -4.5220 -0.10%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs