Core Insights - Investors often focus on the price-to-earnings (P/E) ratio for stock valuation, but it has limitations [1] - The EV-to-EBITDA ratio is considered a more comprehensive valuation metric, providing a clearer picture of a company's true value and earnings potential [2][4] Valuation Metrics - EV-to-EBITDA is calculated by dividing a company's enterprise value (EV) by its earnings before interest, taxes, depreciation, and amortization (EBITDA) [4] - EV accounts for market capitalization, debt, and preferred stock, minus cash and cash equivalents, offering a complete view of a company's value [4] - EBITDA provides insight into profitability by excluding non-cash expenses, making it a useful proxy for cash flows [4] Investment Opportunities - Stocks with low EV-to-EBITDA ratios are often seen as undervalued and attractive for acquisition [5] - Companies like Astrana Health, KT Corporation, Upbound Group, Noah Holdings, and DXP Enterprises have impressive EV-to-EBITDA ratios, indicating potential investment opportunities [3][9] Screening Criteria for Bargain Stocks - Parameters for screening include EV-to-EBITDA less than the industry median, P/E less than the industry median, and P/B less than the industry median [8][10] - Additional criteria include a minimum average trading volume, current price above $5, and a favorable Zacks Rank [11] Company Profiles - Astrana Health is a physician-centric healthcare company with a Zacks Rank of 1 and an expected earnings growth rate of 76.7% for 2025 [12][13] - KT Corporation, the largest telecommunications operator in South Korea, has a Zacks Rank of 2 and an expected earnings growth rate of 280% for 2025 [13] - Upbound Group, a lease-to-own provider, has a Zacks Rank of 2 with a projected earnings growth rate of 9.1% for 2025 [14] - Noah Holdings, a wealth management service provider in China, has a Zacks Rank of 2 and an expected earnings growth rate of 28% for 2025 [15] - DXP Enterprises, providing innovative solutions and services, has a Zacks Rank of 2 and an expected earnings growth rate of 17.5% for 2025 [16]

Core Viewpoint - Comerica Incorporated (CMA) has shown strong performance with a 21.2% increase in shares over the past year, surpassing the industry's growth of 19.5% [1] Price Performance - CMA's stock performance indicates strong investor confidence, outperforming peers like Northern Trust Corporation (NTRS) and BankUnited Inc. (BKU) [1][9] Factors Supporting CMA's Growth - **Improving Operational Efficiency**: The company is optimizing its cost structure by closing underutilized branches, reducing management layers, and enhancing digital tools, leading to a 3.2% year-over-year decline in non-interest expenses in Q1 2025 [3][4] - **Solid Net Interest Income (NII)**: NII has shown a compound annual growth rate (CAGR) of 2.8% over five years, with a 4.9% year-over-year increase in Q1 2025, driven by higher interest rates [5][6] - **Stable Loan Portfolio**: Total loans reached $49.9 billion as of March 31, 2025, with a five-year CAGR of nearly 1%, despite a 1.2% sequential decline due to commercial lending pressures [7] - **Strong Liquidity Position**: The company has a total liquidity capacity of $42.5 billion and $25.4 billion in borrowing capacity at the Federal Reserve, providing financial flexibility [10] - **Impressive Capital Distribution**: With a Common Equity Tier 1 (CET1) ratio of 12.05%, the bank supports robust shareholder return programs, including a quarterly dividend of 71 cents per share and a dividend yield of 4.9% [11][12] Earnings Strength - Comerica has a strong earnings surprise history, beating the Zacks Consensus Estimate in three of the last four quarters with an average surprise of 12.58% [12] - Over the past three to five years, earnings per share (EPS) have grown at a CAGR of 6.37%, higher than the industry average of 4.10% [13] Earnings and Sales Estimates - **Earnings Estimates**: For the current year, the Zacks Consensus Estimate for EPS is $5.11, with a projected decline of 5.2% in 2025, followed by a rise of 9.8% in 2026 [14] - **Sales Estimates**: The current year sales estimate stands at $3.39 billion, with a year-over-year growth estimate of 3.91% [16] Valuation Consideration - CMA's shares are considered expensive relative to the industry, trading at a forward P/E of 11.26X, above the industry average of 11.05X [19]