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Comerica Reaches New 52-Week High - Analyst Blog

Posted: 11/6/2013 2:56:00 PM
Referenced Stocks: BKU;CMA;HBAN;KEY

Shares of Comerica Incorporated ( CMA ) crafted a new 52-week high, touching $44.03 at the end of the trading session on Nov 5. The closing price of this financial services provider represents a solid year-to-date return of 41.6%. The trading volume for the session was 2.58 million shares.

Despite hitting its 52-week high, this Zacks Rank #2 (Buy) stock has plenty of upside left, given its strong estimate revisions over the last 30 days and expected long-term earnings growth of 6.8%.

Growth Drivers

Impressive third-quarter 2013 results - including a positive earnings surprise of 9.86% and top-line growth - as well as a strong capital position were the primary growth drivers for Comerica.

On Oct 16, Comerica reported its third-quarter 2013 earnings of 78 cents per share, outpacing the Zacks Consensus Estimate by 9.86%. Moreover, results surpassed the prior-year quarter earnings by 27.9%.

A year-over-year increase of 8.6% in non-interest revenue, 7.1% fall in non-interest expenses and a rise in deposits and loans were the tailwinds for the quarter. Moreover, the company's capital ratios depict its strong position. However, a 3.5% fall in net interest revenue acted as the headwind for the quarter.

Further, Comerica has now delivered positive earnings surprises in the last 4 quarters with an average beat of 7.68%.

Estimate Revisions Show Potency

Over the last 30 days, 18 out of 21 estimates for 2013 have been revised upward for Comerica, lifting the Zacks Consensus Estimate by 3.5% to $2.97 per share. For 2014, 14 out of 21 estimates moved north, helping the Zacks Consensus Estimate advance 1.7% to $2.95 per share.

Other better performing banks include BankUnited, Inc. ( BKU ), KeyCorp  ( KEY ) and Huntington Bancshares Inc.  ( HBAN ). All 3 companies carry a Zacks Rank #2.

BANKUNITED INC (BKU): Free Stock Analysis Report

COMERICA INC (CMA): Free Stock Analysis Report

HUNTINGTON BANC (HBAN): Free Stock Analysis Report

KEYCORP NEW (KEY): Free Stock Analysis Report

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