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FHN Stock Analysis — First Horizon Corporation

Sector: Financials

AI Verdict

FHN trades at 11.2x next year's earnings with 8.2% expected EPS growth—cheap for a regional bank if its sticky deposit moat keeps earnings momentum, but the growth expectation needs to hold up to justify even this modest multiple.

Competitive Moat

First Horizon operates as a regional bank with deep local relationships and a sticky deposit base, which helps insulate it from national competition. Its defensibility comes from entrenched customer ties and regulatory barriers to entry in core markets.

Summary

FHN stands out for its 11.2x forward P/E and a recent 64.2% revenue growth spike, drawing attention in a sector where growth is rare.

Where It Stands

With a 12.2x trailing P/E and 11.2x forward P/E, FHN trades below the financial sector median of 14x, while posting 8.2% forward EPS growth and a 64.2% revenue jump.

Key Metrics

Analyst Consensus

12 Buy · 12 Hold · 0 Sell (24 analysts)

Bull Case

FHN's 11.2x forward P/E is a discount to the sector average, while analysts expect 8.2% EPS growth, suggesting you're paying less for more growth than most regional banks.

Bear Case

If FHN's P/E reverts to the sector median of 14x without further growth, upside is capped at just 25%, and any disappointment on the 8.2% EPS growth could trigger a rerating down to single-digit multiples.

Catalyst to Watch

Watch for the next earnings report to confirm whether the 8.2% EPS growth forecast is on track, as a miss could quickly compress the P/E below 11x.

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