Zions Bancorporation (ZION): Evaluating Valuation After $50M Loan Charge-Off and Ongoing Federal Investigations

Zions Bancorporation (ZION) has come under scrutiny after disclosing a $50 million charge-off tied to two commercial loans. This development has sparked federal investigations and debate about risks in the broader U.S. private credit market.

See our latest analysis for Zions Bancorporation National Association.

The recent charge-off and ensuing investigations brought a sharp dip to Zions Bancorporation’s share price mid-October, but bigger picture performance tells a different story. Despite short-term volatility, Zions' 1-year total shareholder return stands at 4.45%, showing the stock’s ability to rebound as confidence has rebuilt off the lows, even as broader scrutiny lingers around private credit risk.

If the market’s swift reactions to news at Zions has you rethinking your watchlist, this could be the moment to discover fast growing stocks with high insider ownership.

With fresh fraud-related losses and ongoing regulatory scrutiny weighing on sentiment, but fundamentals showing resilience and a double-digit discount to analyst price targets, is Zions Bancorporation now a bargain or is the market already factoring in its road ahead?

Most Popular Narrative: 14.7% Undervalued

With Zions Bancorporation National Association’s last close at $53.12 and the most popular narrative assigning a fair value of $62.30, there is a notable gap between market price and perceived worth. This divergence has put the bank’s strategic bets and recent performance firmly in focus.

The ongoing investment in digital capabilities, including a modern, AI-enabled core banking platform, positions Zions to capitalize on increasing demand for efficient, tech-driven banking services. This approach lowers operational costs and improves the efficiency ratio, which should support net margin expansion.

Read the complete narrative.

Is surging digital adoption the secret sauce behind this bullish valuation, or is something else fueling the upside? Only by unpacking the underlying assumptions such as growth, profitability, and a bold future profit multiple will you see what is really driving this price target.

Result: Fair Value of $62.30 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, regional economic shocks or a sharper than expected decline in noninterest-bearing deposits could quickly test these improving fundamentals and analyst optimism.

Find out about the key risks to this Zions Bancorporation National Association narrative.

Build Your Own Zions Bancorporation National Association Narrative

If you see things differently or want to dig into the numbers yourself, you can craft your own view of Zions in just a few minutes. Do it your way.

A good starting point is our analysis highlighting 4 key rewards investors are optimistic about regarding Zions Bancorporation National Association.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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