WEBULL

Zions Bancorporation (ZION): Assessing Valuation After Recent Share Price Gains

Simply Wall St · 01/05 00:23

Zions Bancorporation National Association (ZION) has quietly delivered steady gains, with the stock up about 7% over the past month and 12% over the past year, helped by improving earnings and modest revenue growth.

See our latest analysis for Zions Bancorporation National Association.

At a share price of $59.25, Zions looks like a bank stock where momentum is quietly building. A roughly 7 percent 1 month share price return is feeding into a solid 1 year total shareholder return and reinforcing the market’s gradually improving view of its earnings power.

If Zions has caught your eye, it can be worth comparing it with other regional names and beyond, starting with fast growing stocks with high insider ownership.

With Zions trading just below analyst targets yet still at what looks like a steep intrinsic discount, is the market overlooking its earnings momentum, or already baking in the next leg of growth for this regional bank?

Most Popular Narrative Narrative: 4.6% Undervalued

With Zions last closing at $59.25 against a narrative fair value near $62, the story leans toward modest upside built on evolving fundamentals.

The ongoing investment in digital capabilities, including a modern, AI enabled core banking platform, positions Zions to capitalize on increasing demand for efficient, tech driven banking services, potentially lowering operational costs and improving the efficiency ratio, which may support net margin expansion. Loan growth, particularly in commercial and small business sectors, is being supported by positive demographic and economic trends in the Mountain West and Southwest, contributing to a larger addressable customer base and higher net interest income and fee based revenues.

Read the complete narrative.

Want to see what happens when steady regional loan growth meets tighter margins and a richer earnings multiple? Uncover the projections this narrative is quietly banking on.

Result: Fair Value of $62.09 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, mounting fraud-related headlines and any renewed stress in commercial real estate could quickly challenge the improving credit story underpinning this valuation.

Find out about the key risks to this Zions Bancorporation National Association narrative.

Build Your Own Zions Bancorporation National Association Narrative

If you see the story differently, or simply prefer to dig into the numbers yourself, you can build a custom narrative in minutes, Do it your way.

A good starting point is our analysis highlighting 5 key rewards investors are optimistic about regarding Zions Bancorporation National Association.

Looking for more investment ideas?

Before you move on, consider using the Simply Wall St Screener to help identify opportunities that some investors may be overlooking.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.