10 Best Local Bank Stocks to Buy

5. Comerica Incorporated (NYSE:CMA)

Number of Hedge Fund Investors: 46

Comerica Incorporated (NYSE:CMA) offers financial products and services to commercial and retail clients.  CMA also manages a securities portfolio through its Finance segment. The stock has rallied 27% in the past six months but the forward dividend yield remains appealing at 4.28%. Recently it received a couple of price downgrades from analysts at Baird and JP Morgan amidst declining loan and deposit balances.

While the growth in the balance sheet has been limited for fiscal 2024, Comerica Incorporated (NYSE:CMA) has been able to build a strong balance sheet, increasing its CET1 ratio by 80 bps. A lower charge-off demonstrated a strong underwriting capability. The efficiency ratio in the 60s continues to be a weakness as the management targets a ratio of around 50%. The Commercial Real Estate loan is expected to underperform in 2025 but new opportunities have cropped up in its capital market business. Not only did the securities portfolio offer a super yield but Comerica Incorporated (NYSE:CMA) also managed to execute its first M&A deal as an advisor.