) achieved a new 52-week high, touching $41.12 on Jul 3, 2013.
The closing price of this regional bank reflects a robust
year-to-date return of 31.9%. The trading volume for the session
was 1.5 million shares.
Despite the strong price appreciation, this Zacks Rank #3 (Hold)
stock has plenty of upside left given its expected long-term
earnings growth rate of 6.2%.
Impressive first-quarter 2013 results, a strong capital position
and healthy capital deployment activities were the company's
primary growth drivers.
Comerica's first-quarter earnings beat the Zacks Consensus
Estimate by 4.5%. Results benefited from reduced expenses, growth
in average loans and improved credit metrics. However, the
positives were partially offset by lower revenues.
Further, over the years, Comerica's capital deployment
initiatives through dividend payment and share buybacks boosted
confidence of yield seeking investors. During the first quarter,
the company paid back 77% of net income to shareholders. We
expect such actions to garner more trust from investors.
We believe Comerica's continuous geographic diversification
beyond its long-established but slower-growing Midwest markets to
drive growth over the next cycle. Further, we expect revenue
synergies from the Sterling Bancshares Inc acquisition to augment
top-line growth in the near term.
For 2013, the Zacks Consensus Estimate moved north marginally to
$2.79 per share over the last 60 days. For 2014, the Zacks
Consensus Estimate moved up 1.1% to $2.84 per share over the same
Some better performing banks include
JPMorgan Chase & Co.
), all of which carry a Zacks Rank #2 (Buy).
CITIGROUP INC (C): Free Stock Analysis Report
COMERICA INC (CMA): Free Stock Analysis
JPMORGAN CHASE (JPM): Free Stock Analysis
KEYCORP NEW (KEY): Free Stock Analysis Report
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