1. First Horizon Corporation (NYSE:FHN)
Number of Hedge Fund Holders: 47
Market Capitalization as of October 28, 2024: $9.25 Billion
Forward P/E as of October 28, 2024: 11.4
First Horizon Corporation (NYSE:FHN) ranks first on our list of the best mid-cap value stocks to invest in. The company provides wealth management services, regional banking, and capital markets services. Its products and services encompass banking, borrowing, digital banking, insuring, investing, and trust services.
First Horizon Corporation (NYSE:FHN) is one of the biggest banks in the United States. It has an average daily trading volume of more than $5 billion and has transacted business with more than 50% of all US banks over the past few years, with portfolios amounting to more than $100 million. As of December 31, 2023, the company had over 418 locations across the United States and total assets worth $81.7 billion.
In the third quarter of 2024, First Horizon Corporation (NYSE:FHN) logged $631 million in net interest income and $200 million in fee income, bringing the total revenue for Q3 to $832 million. In addition to that, despite declining short-term rates, net interest income remained stable. The company expects subsequent changes in net interest income as rate cuts are initiated. During the third quarter of 2024, the company grew its client balances by almost $1 billion, with growth momentum particularly coming from the Carolinas, Alabama, and specialty business lines.
Overall, First Horizon Corporation (NYSE:FHN) is one of the best stocks on our list and we say that because of its large customer base, which is constantly expanding, and its strong fundamentals.
Scout Investments, Inc’s Carillon Scout Mid Cap Fund stated the following regarding First Horizon Corporation (NYSE:FHN) in its fourth quarter 2023 investor letter:
“First Horizon Corporation (NYSE:FHN) was the third-largest contributor. This bank holding company rose as the industry rallied due to the investor sentiment shift toward a soft economic landing or continued growth. A soft economic landing, should it occur, means that banks are likely to experience fewer loan losses than in a recession and steadier interest rate margins if extreme interest rate volatility is dampened.”
While we acknowledge the potential of FHN to grow, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than FHN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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