Zions Bancorporation National Association (ZION) recently priced US$500,000,000 of fixed to floating rate senior notes due 2029, a funding move intended to pay down short term borrowings and adjust its interest rate exposure.

At a latest share price of US$61.53, Zions has seen a 22.01% 90 day share price return alongside an 11.99% 1 year total shareholder return. This suggests momentum has been building as investors react to recent funding moves and the bank's broader performance.

If this funding update has you thinking about where banks fit in your portfolio, it can help to broaden your search and check out 23 top founder-led companies for more ideas beyond the financial sector.

With Zions trading at US$61.53, sitting below the average analyst price target and with an intrinsic discount flag showing, the key question is simple: are you looking at undervaluation, or is the market already pricing in future growth?

Most Popular Narrative: 19.5% Undervalued

According to the most followed narrative, Zions Bancorporation National Association’s fair value of $76.48 sits above the recent $61.53 share price, putting the current funding move into a wider valuation context.

Zion Bank will be releasing their Quarterly Earnings Report on 10-21-24. 4 out of 4 of their last reports were all beats. Two out of the four were major blowouts. The thing with most banks is that they move slowly until they release their reports. Zion is a small banking firm. For the last 3 months they are up 1.41%. However, for the past month they are up 7%. How is this? Our market and its volatility. Currently only $50 a share. This is a company that some investors may consider a must-have, especially with the importance of their earnings release. Some traders look to catch a potential price move around such events. They are being estimated to see a 15% jump once the report is released. Our information suggests this will be a major event for this bank, and this little firm is expected to attract significant attention. Daily Investors

Curious what sits behind that higher fair value and confident tone from DailyInvestors? Earnings beats, revenue growth assumptions and margin strength all play a role, but the details are where this narrative really gets interesting.

Result: Fair Value of $76.48 (UNDERVALUED)

However, this story could change quickly if future earnings miss expectations or if funding costs and credit quality move against what the narrative is assuming.

Next Steps

If this mix of optimism and caution has you thinking more critically about Zions, take a moment to review the data and weigh both sides for yourself. Then check out 4 key rewards and 1 important warning sign to see how the key concerns and potential upsides stack up in one place.

Looking for more investment ideas?

If you stop with Zions, you might miss opportunities that better match your goals, so use the screener and let the data surface fresh ideas for you.

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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.