5 Most Undervalued Bank Stocks To Buy According To Analysts

1. First Horizon Corporation (NYSE:FHN)

Number of Hedge Fund Holders: 50

PE Ratio as of March 4: 9.38

Average Upside Potential: 12.87%

Average Analyst Price Target: $16.31

First Horizon Corporation (NYSE:FHN), operating as the bank holding company for First Horizon Bank, offers diverse financial services. The company’s operations are divided into Regional Banking and Specialty Banking segments, providing general banking services to consumers, businesses, financial institutions, and governments. First Horizon Corporation (NYSE:FHN) is one of the most undervalued stocks to buy. On January 24, the company declared a quarterly dividend of $0.15 per share, in line with previous. The dividend is payable on April 1, to shareholders on record as of March 15. The company also announced that its board has granted authorization for the repurchase of common stock worth $650 million. 

According to Insider Monkey’s fourth quarter database, 50 hedge funds were bullish on First Horizon Corporation (NYSE:FHN), compared to 48 funds in the prior quarter. Israel Englander’s Millennium Management is the largest stakeholder of the company, with 12 million shares worth $170.4 million. 

ClearBridge Small Cap Value Strategy made the following comment about First Horizon Corporation (NYSE:FHN) in its Q2 2023 investor letter:

“The financials sector was also a positive contributor to relative outperformance during the quarter as fears of further contagion of March’s bank crisis eased and allowed for a rebound in many of the higher-quality small and regional banks caught up in the panic. For example, as investor pessimism dissipated, Bank OZK exceeded analyst expectations and raised its quarterly dividend, highlighting continued improvement in its net interest income margin in the first quarter. We capitalized on the retreat in bank stocks early in the quarter to initiate a new position in regional bank First Horizon Corporation (NYSE:FHN), which reflected a unique opportunity to buy a bank with an extremely strong capital and liquidity profile at a distressed value after its deal to be acquired by Toronto Dominion was canceled through no fault of First Horizon. While we continue to be vigilant for signs of further deterioration in the sector, we have high conviction in our holdings and believe that they will continue to be positive contributors to our long-term performance.”

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