If You Invested $1000 in Zions 10 Years Ago, This Is How Much You'd Have Now
How much a stock's price changes over time is a significant driver for most investors. Not only can price performance impact your portfolio, but it can help you compare investment results across sectors and industries as well.
Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.
What if you'd invested in Zions (ZION) ten years ago? It may not have been easy to hold on to ZION for all that time, but if you did, how much would your investment be worth today?
Zions' Business In-Depth
With that in mind, let's take a look at Zions' main business drivers.
Headquartered in Salt Lake City, UT and founded in 1873, Zions Bancorporation, National Association is a diversified financial service provider, operating a widespread network of more than 400 branches. The company’s footprint spans 11 western states, namely Utah, Idaho, California, Nevada, Arizona, Colorado, Texas, New Mexico, Washington, Oregon and Wyoming.
Effective October 2018, Zions Bancorporation, N.A. merged with its holding company, Zions Bancorporation. Earlier in 2015, the company had consolidated its seven subsidiary banks into a single national bank charter.
Zions Bancorporation was earlier the part of Systematically Important Financial Institution (SIFI). However, following the changes in the regulations related to the same, the company no longer holds the SIFI label. The company is included in the S&P 500 and NASDAQ Financial 100 indices.
Zions Bancorporation offers its services through local banking identities using local management teams. The company provides a full range of traditional banking services (both commercial and retail) and is a national leader in small business administration lending, public finance advisory and electronic bond trading. It also offers wealth management and private client banking services. It is one of the largest providers of the Small Business Administration’s Paycheck Protection Program (PPP) loans in the United States.
Zions Bancorporation conducts its operations through seven separately managed and branded segments - Zions Bank, Amegy Bank, California Bank & Trust, National Bank of Arizona, Nevada State Bank, Vectra Bank Colorado and The Commerce Bank of Washington.
As of Jun 30, 2022, Zions had $87.8 billion in total assets, $51.9 billion in net loans held for investment, $79.1 billion in total deposits and $5.6 billion in shareholders’ equity. As of the same date, the company had more than 9,800 employees.
Bottom Line
While anyone can invest, building a lucrative investment portfolio takes research, patience, and a little bit of risk. If you had invested in Zions ten years ago, you're probably feeling pretty good about your investment today.
A $1000 investment made in August 2012 would be worth $2,956.59, or a gain of 195.66%, as of August 24, 2022, according to our calculations. This return excludes dividends but includes price appreciation.
The S&P 500 rose 194.47% and the price of gold increased 0.49% over the same time frame in comparison.
Looking ahead, analysts are expecting more upside for ZION.
Shares of Zions have outperformed the industry over the past year. The company’s earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters. Its second-quarter 2022 results reflected higher provisions, rising rates and loan demand, and fall in fee income. Robust loans and deposit balances and higher interest rates will keep aiding revenues. While persistently increasing operating expenses, mainly owing to the company's investments in franchise and efforts to digitize operations, are likely to hurt the bottom line to some extent in the near term, a strong balance sheet position, manageable debt level and business simplifying initiatives will support financials in the upcoming quarters. Further, the bank's steady capital deployment activities indicate earnings strength and will keep enhancing shareholder value.
The stock has jumped 6.54% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 11 higher, for fiscal 2022; the consensus estimate has moved up as well.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Zions Bancorporation, N.A. (ZION) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
