First Horizon Corp (FHN, Financial) has experienced a notable fluctuation in its stock price recently. With a current market capitalization of $7.71 billion, the stock is trading at $13.8. Over the past week, FHN has seen a 6.82% loss, yet when zooming out to the past three months, the stock tells a different story with a 23.22% gain. According to GuruFocus's valuation metrics, the GF Value of FHN is $17.99, up from a past GF Value of $17.92. This suggests that the stock is currently modestly undervalued, a shift from its previous status of being significantly undervalued.
Understanding First Horizon Corp
First Horizon Corp, a key player in the banking industry, operates primarily through its subsidiary, First Tennessee Bank. With approximately 200 branches, it has a strong presence in Tennessee, contributing to 65% of its revenue. The bank's capital markets operations add another 25%, while the remaining revenue streams come from non-strategic and corporate segments. First Horizon is known for its diverse banking products and holds a significant 13% deposit market share in its home state. 
Profitability Insights
First Horizon's Profitability Rank stands at 4 out of 10. The company's Return on Equity (ROE) is 11.65%, which is better than 58.14% of 1,450 companies in the same industry. Its Return on Assets (ROA) is also commendable at 1.20%, surpassing 66.28% of 1,453 companies. Notably, First Horizon has maintained profitability for the past 10 years, a feat better than 99.93% of 1,465 companies. 
Growth Trajectory and Projections
Despite a 3-Year Revenue Growth Rate per Share decline of -1.50%, First Horizon's future growth outlook appears more positive. The company's Total Revenue Growth Rate, estimated for the next 3 to 5 years, is 2.66%, which is more favorable than 37.7% of 244 companies. The 3-Year EPS without NRI Growth Rate is 2.10%, and the 5-Year EPS without NRI Growth Rate is 8.80%, indicating a steady improvement over time. 
Notable Shareholders
First Horizon's shareholder base includes prominent investors who have expressed confidence in the company's potential. Louis Moore Bacon (Trades, Portfolio) is the leading holder with 2,795,162 shares, representing 0.5% of the company. Following him is Jim Simons (Trades, Portfolio), holding 2,260,311 shares or 0.4%, and David Einhorn (Trades, Portfolio) with 1,297,020 shares, accounting for 0.23% of First Horizon.
Competitive Landscape
When compared to its closest competitors, First Horizon holds its ground with a market cap of $7.71 billion. New York Community Bancorp Inc (NYCB, Financial) has a slightly lower market cap of $7.12 billion, while Comerica Inc (CMA, Financial) and Western Alliance Bancorp (WAL, Financial) follow closely with market caps of $6.93 billion and $6.81 billion, respectively. This positioning reflects First Horizon's solid standing within the banking sector.
Conclusion
In summary, First Horizon Corp's recent stock performance has been a mixed bag with short-term losses but significant gains over the past quarter. The company's current valuation indicates that it is modestly undervalued, presenting a potential opportunity for investors. First Horizon's consistent profitability and promising growth estimates, coupled with the backing of notable shareholders, underscore its resilience and potential for future success. When juxtaposed with its competitors, First Horizon's market position remains robust, suggesting a stable investment prospect within the banking industry.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
