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

Comerica: Financial Loser

Stocks in this article: C STI CMA

NEW YORK ( TheStreet) -- Comerica (STI - Get Report) was the loser among the largest U.S. banking names on Wednesday, with shares declining over 4% to close at $29.47.

The broad indexes showed slight declines, despite a report by the National Association of Realtors that existing home sales in January increased 4.3% to an annual rate of 4.57 million, which was the strongest sales growth since May of 2010.

The Consumer Financial Protection Bureau announced an "inquiry into checking account overdraft programs" which may have sent a chill into bank executives and investors, after the huge drops in service charges on deposit accounts from rules implemented in 2010, requiring banks only to offer expensive ATM and debit card overdraft protection to customers who previously opted-in for the service, followed by a vicious hit to revenue from the Durbin Amendment's caps on debit card interchange fees in October of last year.

The The KBW Bank Index (I:BKX) declined 2% to close at 44.62, with all 24 index components showing declines.

In his report highlighting banks growing their commercial and industrial loan portfolios, Jefferies analyst Ken Usdin said that Comerica grew its commercial loan portfolio by 8% during the fourth quarter, to $25.0 billion as of Dec. 30, while the Dallas Lender's totl loans grew 3.5%, to $42.7 billion.

Usdin said that "growth in C&I led the way as CMA experienced a strong quarter in its dealer finance and mortgage banker businesses," but that Comerica's "forward guidance is fairly cautious given the company is only calling for 2%-5% average loan growth in 2012."

The analyst rates Comerica a "Hold," with a $28 price target, and estimates the company will earn $2.40 a share in 2012, followed by EPS of $2.50 in 2013.

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

Comerica's shares have now returned 14% year-to-date, after a 38% decline in 2011.

1 of 3

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 17,416.85 +225.48 1.31%
S&P 500 2,021.25 +19.09 0.95%
NASDAQ 4,683.4070 +45.4130 0.98%

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