Here's Why First Horizon (FHN) Stock is a Must Buy Right Now

Core Viewpoint - Adding First Horizon Corporation (FHN) to an investment portfolio is considered a favorable decision due to higher interest rates and a robust loan and deposit balance, positioning the company for growth [1]. Financial Performance - Over the past six months, FHN's shares have increased by 14.4%, contrasting with a 1.7% decline in the industry [2]. - FHN's loans and leases have experienced a compound annual growth rate (CAGR) of 18.7% over the past four years, driven by strategic acquisitions and a diversified loan portfolio [11]. - Deposits have also seen a CAGR of 19.3% during the same period, supported by the company's presence in high-growth markets [11]. - Earnings have grown by 3.74% over the past three to five years, with projections indicating a 4.90% increase in 2024 and a 9.15% rise in 2025 [12]. Balance Sheet Strength - FHN's debt-to-equity ratio stands at 0.13, below the industry average of 0.23, indicating a strong balance sheet [5]. - As of March 31, 2024, the company reported $1.73 billion in debt and $2.63 billion in cash and interest-bearing deposits, showcasing a solid liquidity profile [5]. Capital Distribution - FHN has an attractive capital distribution plan, having authorized a new share repurchase program worth $650 million in January 2024, set to expire on January 31, 2025 [13]. - The company has consistently paid dividends to shareholders over the years, reflecting its commitment to capital distribution [13]. Valuation - FHN's price/earnings (F1) ratio is 10.26 and price/sales ratio is 1.61, compared to the industry's 11.76 and 1.69, respectively, suggesting the stock may be undervalued [14]. - The stock has a Value Score of B, and research indicates that stocks with a Style Score of A or B, combined with a Zacks Rank of 1 or 2, offer the highest upside potential [14]. Analyst Sentiment - The Zacks Consensus Estimate for FHN's 2024 earnings has been revised upward by 4.9% over the past 60 days, indicating positive analyst sentiment regarding its earnings growth potential [9].