Time to Buy ZION Stock … Again

buy low opportunity

Sometimes the stock market hands you a gift. A simple trading situation in a high-quality stock. An opportunity to repeatedly make 10%-15% profit within half a year’s time. When you find such a wonderful money-making stock, it’s best not to overthink it. Simply say “thank you” and take action! For us, ZION stock is the gift that keeps on giving.

Zions Bancorporation (ZION – yield 2.3%) has been trading between 50 and 59 throughout 2018. Investors who bought and sold at the highs and lows of the stock’s very solid trading range this year had an opportunity to make 10% profit in January, February, April and again in May. Each trade lasted less than a month, while occasionally receiving a boost from dividends!

Are you ready to profit from ZION stock again? Let’s do it!

Repeated Profits in ZION Stock

Investors who took advantage of my first recommendation to buy ZION on August 4, 2016 have since doubled their money.

Investors who took advantage of my second recommendation to buy ZION in February 2017 have received a 22% total return by now.

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Investors who took advantage of my third recommendation to trade ZION in early April 2018 were able to earn a quick 12% profit from a seven-week run-up in the share price, and also collect a dividend!

ZION stock has been up and down this year, but appears primed for another breakout.Zions Bancorporation is a bank holding company that owns eight commercial banks with $65 billion in assets, operating in 11 states throughout the western U.S., including California Bank & Trust. The company is based in Salt Lake City, Utah.

Many recent economic and regulatory changes are boosting the bank’s profitability. Rising interest rates, lower income tax rates, strong U.S. economic growth and new 2018 banking legislation that reduces Zions’ expensive regulatory burdens are all helping banks better serve their customers, communities and shareholders.

Zions achieved a 43.7% increase in earnings per share (EPS) in 2017. (For perspective, I consider any EPS growth rate over 15% to be extremely attractive.) Wall Street’s consensus estimate points toward EPS growing another 35% in 2018.

While the earnings growth rate will eventually slow to a more normal single-digit number, that’s okay. If you want a go-go growth stock, you can chase a technology stock. We’re discussing a trading opportunity today, so the earnings growth rate is not actually pivotal. The strong, consistent earnings growth simply reinforces our confidence in the quality of the company that we’re investing in, thereby eliminating some of the risk associated with stock investing.

ZION is a mid-cap stock within the S&P 500 index, with a market capitalization of $10.2 billion. Keep in mind that while I’m recommending ZION in a trading situation today, there’s always the possibility that Zions could be gobbled up by a larger bank in a buyout deal. Institutions own 94% of Zions shares—a bullish sign of professional confidence in the stock.

This week, Zions announced its fifth quarterly dividend increase in a row. The payout has risen from $0.08 per share in the second quarter of 2017 to $0.30 per share in the third quarter of 2018. The current yield on the stock is now 2.3%.

In addition to the good dividend news, Zions announced that they will repurchase $180 million of their stock during the third quarter. Share repurchases serve to enhance the stock’s EPS, and thus the overall value of the remaining shares. In addition, when a company has a stock buyback plan in place, there’s less downside risk with their share price. That’s because each time the price falters a bit, the company can swoop in and buy the stock, thus serving to support the share price.

10%-15% Profit Potential

ZION recently peaked at 59 in May 2018, then slowly declined to the bottom of its trading range in the low 50s. Investors who buy now have a good opportunity to see the stock rise 10%-15% as ZION once again marches back to the top of its 2018 trading range.

This is an excellent time to buy ZION, before it resumes its upward climb.

Crista Huff

Buy Low, Sell High

Crista Huff is the lead analyst of Cabot Undervalued Stocks Advisor. Her goal is to assist you in outperforming the major U.S. stock market indexes while minimizing risk, by screening many hundreds of stocks for growth, value and bullish technical charts.

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