FHN Stock Analysis — First Horizon Corporation

Sector: Financials

AI Verdict

FHN is cheap on headline P/E, but the 3.8% growth forecast and high PEG mean you're paying a premium the numbers don't yet support unless the bank can deliver a positive surprise.

Competitive Moat

First Horizon is a regional bank with a strong presence in the southeastern U.S., leveraging long-standing local relationships and sticky deposit bases to defend its market share. Its defensibility comes from entrenched customer ties and regulatory barriers that make new competition costly and slow.

Summary

FHN stands out for its 64.2% revenue growth over the past year, far outpacing typical regional banks.

Where It Stands

FHN trades at 11.4x next year's earnings, a discount to the sector median of 14x, with a modest 3.8% forward EPS growth and a trailing PEG of 3.09 signaling the stock is expensive for its growth rate.

Key Metrics

Trailing P/E: 11.8x
Forward P/E: 11.4x
PEG Ratio: 3.09
Earnings Growth: +0.0%
Revenue Growth: +0.6%
Dividend Yield: 0.05%
52-Week High: $26.56
52-Week Low: $19.80

Analyst Consensus

11 Buy · 13 Hold · 0 Sell (24 analysts)

Bull Case

The 11.4x forward P/E is 19% below the financial sector median, offering a cheaper entry point if even modest growth continues.

Bear Case

With a PEG ratio of 3.09 and just 3.8% forward EPS growth, any P/E compression to the sector median would cut the valuation by about 19%.

Catalyst to Watch

Watch for quarterly earnings surprises or M&A activity that could accelerate EPS growth above the current 3.8% consensus.