Is Zions Bancorporation a Good Regional Bank Stock to Own in 2022?

NASDAQ: ZION | Zions Bancorporation N.A. News, Ratings, and Charts

ZION – Zions Bancorporation (ZION) has maintained stable momentum over the past year coupled with impressive profitability. However, given the company’s bleak growth prospects, is it worth adding its stock to one’s portfolio now? Read on to learn our view.

Zions Bancorporation, National Association (ZION), in Salt Lake City, Utah, is a leading financial services company in the United States, with $2.9 billion in annual net revenue in 2021 and more than $90 billion in total assets. The stock has gained 53.7% in price over the past year and 30.1% over the past six months.

The company’s board of directors authorized a share repurchase of up to $50 million for the first quarter of 2022, reflecting the company’s stable cash flow generating capabilities.

However, last month BofA Securities downgraded the stock to “Underperform from Neutral.” In addition, the company’s bleak growth prospects make its near-term prospects look uncertain.

Here is what could shape ZION’s performance in the near term:

Strong Profitability

ZION’s 35.4% net income margin is 17.2% higher than the 30.2% industry average. Also, its 6.3% CAPEX/Sales multiple is 283.7% higher than the 1.64% industry average. Also, its $634 million in cash from operations is 365.7% higher than the $136.14 million industry average.

Poor Growth Prospects

Analysts expect ZION’s EPS to decline 40% in the current quarter (ending March 2022) and 41.3% in the next quarter (ending June 2022). Also, the company’s sales growth is expected to remain negative in next quarter. Furthermore, the company failed to beat the Street’s EPS estimates in two trailing four quarters. In addition, ZION’s EPS is expected to decline at the rate of 32.4% per annum over the next five years.

POWR Ratings Reflect Uncertainty

ZION has an overall C rating, which equates to Neutral in our proprietary POWR Ratings system. The POWR ratings are calculated by considering 118 distinct factors, with each factor weighted to an optimal degree.

Our proprietary rating system also evaluates each stock based on eight distinct categories. ZION has a D grade for Growth. The company’s poor growth prospects are consistent with this grade.

Among the 37 stocks in the D-rated Pacific Regional Banks industry, ZION is ranked #25.

Beyond what I have stated above, one can view ZION ratings for Value, Stability, Momentum, and Sentiment Quality here.

Bottom Line

While the company possesses strong profitability and has exhibited impressive price performance over the past months, its near-term growth prospects could raise investors’ concerns. So, we believe investors should wait for the company’s prospects to stabilize before investing in the stock.

How Does Zions Bancorporation National Association (ZION) Stack Up Against its Peers?

While ZION has an overall C rating, one might want to consider its industry peers, OP Bancorp (OPBK), PCB Bancorp (PCB), and BayCom Corp (BCML), having an overall B (Buy) rating


ZION shares fell $0.54 (-0.80%) in premarket trading Tuesday. Year-to-date, ZION has gained 7.38%, versus a -5.27% rise in the benchmark S&P 500 index during the same period.


About the Author: Pragya Pandey


Pragya is an equity research analyst and financial journalist with a passion for investing. In college she majored in finance and is currently pursuing the CFA program and is a Level II candidate. More...


More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
ZIONGet RatingGet RatingGet Rating
OPBKGet RatingGet RatingGet Rating
PCBGet RatingGet RatingGet Rating
BCMLGet RatingGet RatingGet Rating

Most Popular Stories on StockNews.com


:  |  News, Ratings, and Charts

Recession or Not Recession…That Is the Question

Every investor appreciates that recessions and bear markets go hand in hand. But the definition of a recession often seems more difficult to pin down. So are we in a recession? And if not, then does that mean that disaster has been averted or that the pain train is still rolling towards investors? This is an important debate because it helps us appreciate what lies ahead for the stock market (SPY). We will tackle this vital topic in this week's commentary. Read on below...

:  |  News, Ratings, and Charts

3 Cybersecurity Stocks to Buy on the Pullback

Tech stocks are rallying. Within the sector, cybersecurity stocks offer the best combination of growth and value especially as the sector's importance grows everyday. Read on to find out why investors should consider buying top cybersecurity stocks like Fortinet (FTNT), Qualys (QLYS), and OneSpan (OSPN).

:  |  News, Ratings, and Charts

4 Big Reasons Why the Bear Rally Is Nearing an End…

The Stock Market (SPY) has put on an impressive rally over the last few weeks, leading many investors to believe that the bull is ready to resume its run. However, there are multiple reasons to believe the bear market is far from over. I lay out 4 of the main reasons below and explain how you can profit from the volatile markets that lie ahead. Read on below for more…

:  |  News, Ratings, and Charts

Is Costco Stock Still a Buy Amid Retail Troubles?

Retail companies have faced significant headwinds this year due to sky-high inflation and supply chain disruptions. However, Costco Wholesale's (COST) strong revenue performance and consistent margins have helped the stock to remain resilient amid retail troubles. So is this stock worth adding to your portfolio now? Let’s find out…

:  |  News, Ratings, and Charts

4 Big Reasons Why the Bear Rally Is Nearing an End…

The Stock Market (SPY) has put on an impressive rally over the last few weeks, leading many investors to believe that the bull is ready to resume its run. However, there are multiple reasons to believe the bear market is far from over. I lay out 4 of the main reasons below and explain how you can profit from the volatile markets that lie ahead. Read on below for more…

Read More Stories

More Zions Bancorporation N.A. (ZION) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All ZION News