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 Winner

Stocks in this article: CMA I:BKX

NEW YORK ( TheStreet) -- Comerica (CMA - Get Report) was the winner among the largest U.S. banks on Thursday, with shares rising 1.5% to close at $34.38.

The broad indices all faded late to end the session with slight declines, after the Bureau of Economic Analysis released its second estimate on fourth-quarter gross domestic product, showing that the U.S. economy expanded at an annual rate of 0.1%. The GDP growth figure was revised from the previous estimate of a negative growth rate of 0.1%. The consensus among economists was for the revised GDP growth rate to come in at 0.5%, according to Zacks.

The Labor Department said initial unemployment claims for the week ended Feb. 23 were 344,000, a decrease of 22,000 from the previous week's upwardly revised 366,000. The four-week moving average was 355,000, a decline of 6,750 from the previous week's 361,750.

Continuing claims for the week ended Feb. 16 were 3.074 million, down 91,000 from the preceding week's upwardly revised level of 3.165 million.

In other U.S. economic news on Thursday, the Chicago Purchasing Managers Index rose to 56.8 in February from 55.6 in January.

The KBW Bank Index (I:BKX) was down slightly to close at 53.98.

Comerica


Shares of Comerica of Dallas have now returned 13% this year, following a 20% return during 2012. The shares trade for just above tangible book value, according to Thomson Reuters Bank Insight, and for 12.3 times the consensus 2014 earnings estimate of $2.79 a share, among analysts polled by Thomson Reuters. The consensus 2013 EPS estimate is $2.76.

Based on a quarterly payout of 17 cents, the shares have a dividend yield of 1.98%.

A major concern for Comerica's investors coming out of fourth-quarter earnings season was the narrowing of the company's net interest margin (NIM), which is the spread between the average yield on loans and investments and the average cost for deposits and borrowings. The company's fourth-quarter NIM was 2.87%, declining from 2.96% the previous quarter, and 3.19% a year earlier.

Loan growth was insufficient to offset the narrowing margin, as fourth-quarter net interest income declined to $424 million from $427 million in the third quarter and $444 million in the fourth quarter of 2011.

1 of 2

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 17,320.39 -96.46 -0.55%
S&P 500 2,008.32 -12.93 -0.64%
NASDAQ 4,669.5990 -13.8080 -0.29%

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