FHN or CFR: Which Is the Better Value Stock Right Now?

Core Viewpoint - Investors in the Banks - Southwest sector should consider First Horizon National (FHN) and Cullen/Frost Bankers (CFR) as potential value opportunities [1] Group 1: Zacks Rank and Earnings Outlook - Both FHN and CFR currently have a Zacks Rank of 1 (Strong Buy), indicating positive earnings estimate revisions [3] - The Zacks Rank strategy targets companies with improving earnings outlooks, which applies to both FHN and CFR [3] Group 2: Valuation Metrics - FHN has a forward P/E ratio of 13.28, while CFR has a forward P/E of 16.38 [5] - FHN's PEG ratio is 1.23, compared to CFR's PEG ratio of 6.58, indicating FHN may be more favorably valued considering growth expectations [5] - FHN's P/B ratio is 1.35, while CFR's P/B ratio is 2.48, further suggesting FHN is undervalued relative to its book value [6] Group 3: Value Grades - Based on various valuation metrics, FHN holds a Value grade of B, whereas CFR has a Value grade of F, indicating FHN is the superior value option at this time [6]