Fresh Look at First Horizon (FHN) Valuation After a 20% One-Year Share Price Gain

Market context for First Horizon

First Horizon (FHN) has quietly outperformed many regional peers this year, with the stock up about 20% over the past year and nearly 8% in the past month. This performance invites a closer look.

See our latest analysis for First Horizon.

With the share price now at $23.59 and a 1 month share price return of just over 8 percent, that recent momentum builds on a solid 1 year total shareholder return above 20 percent. This hints that investors are gradually reassessing both earnings power and risk.

If First Horizon’s move has you thinking about what else might be quietly re rating, it could be a good moment to explore fast growing stocks with high insider ownership.

With earnings and revenue still growing and shares trading at a meaningful discount to some valuation estimates, the next question is clear: Is First Horizon a fresh buying opportunity, or is the market already pricing in that future growth?

Most Popular Narrative: 3.7% Undervalued

With First Horizon last closing at $23.59 against a narrative fair value of about $24.49, the story leans toward modest upside grounded in disciplined execution.

The diversified business model, offering countercyclical revenue support, may shield earnings from macroeconomic volatility and ensure a steady revenue stream across various interest rate environments.

Read the complete narrative.

Curious how modest growth expectations, stable margins and a shifting share count can still point to upside from here? The narrative’s math might surprise you.

Result: Fair Value of $24.49 (UNDERVALUED)

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

However, rising credit costs and weaker fee income could quickly undercut margin resilience and challenge the case for steady, compounding earnings from here.

Find out about the key risks to this First Horizon narrative.

Another Way to Look at Value

On earnings, First Horizon trades at 13.6 times profits, richer than both peers at 11.2 times and the US Banks average at 12 times, and above its 12.7 times fair ratio. If sentiment cools, could that valuation premium unwind faster than fundamentals improve?

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own First Horizon Narrative

If you see the story differently, or would rather dig into the numbers yourself, you can build a fresh view in minutes with Do it your way.

A great starting point for your First Horizon research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

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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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