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First Horizon - AI Stock Analysis

Analysis generated October 15, 2024

First Horizon Corporation is a leading regional financial services company, serving customers primarily across the southern United States. The bank offers a broad range of products and services, including consumer and commercial banking, wealth management, and insurance solutions. Its diverse portfolio, strong regional presence, and persistent focus on community involvement make it a notable player in the regional banking sector.

Fundamental Analysis

Revenue for the last quarter was $789 million. This represents a decrease of 1.50% compared to the quarter before, which raises concerns given the need for consistent revenue growth. More importantly, compared to the same quarter last year, there is a stark decrease of 22.87%, indicating deeper issues that need addressing.

Net income for the last quarter was $199 million, an increase of 3.65% compared to the previous quarter. This low but positive growth should be seen as a silver lining despite its year-over-year decrease of 38.77%, which signifies substantial areas of concern surrounding profitability.

EBITDA came in at $195 million for the last quarter, a significant decrease of 72.46% compared to the quarter before and a sharp decline of 76.16% compared to the same quarter in the previous year. Such a steep drop in EBITDA is alarming and suggests operational inefficiencies or increased overheads.

The current P/E ratio stands at 13.48, which is within a normal range for the industry. While this figure doesn’t raise immediate red flags, it does highlight that the stock is neither undervalued nor overpriced in the current market context.

Technical Analysis

Today's stock price is $16.71, which represents a notable increase of 5.69% compared to a month ago. This suggests some positive momentum in the short term. Moreover, compared to a year ago, the stock price has surged by 63.98%, indicating a strong bullish trend in the long term.

The current Simple Moving Average (SMA10) is $16.07, slightly higher than the previous SMA10 of $15.95. This upward trend in SMAs suggests ongoing positive price movements.

The Relative Strength Index (RSI) stands at 51.9, which is in neutral territory. This suggests that the stock is neither overbought nor oversold, indicating balanced investor sentiment at the moment.

Alternative Data Analysis

Looking at job postings and employee sentiment, First Horizon has 279 open positions, a 19% increase over the past couple of months. This suggests a company looking to expand, which can be seen as a healthy sign.

Employee sentiment regarding the business outlook is neutral, which provides a balanced perspective from those within the company.

However, customer acquisition metrics point to a worrisome trend. First Horizon has an estimated 2.5M visitors to its webpage, but this number is down by 13% over the last few months. This decline could indicate a loss in customer interest or potential issues in customer retention.

Regarding customer engagement, their Instagram following stands at 7,900, up by 3% in the last couple of months, indicating growing interest. However, their Twitter following is stagnant at 5,100 with no meaningful increase, suggesting limited engagement on that platform.

An AI-driven score from AltIndex gives First Horizon a score of 47, which suggests a “Hold” recommendation based on the blended data analysis of fundamental, technical, and alternative data.

Conclusion and Recommendation

Summarizing all the data, First Horizon appears to be at a crossroads. While the company shows some positive signs of growth, particularly in net income and technical stock performance, the significant drops in revenue and EBITDA are concerning. Operational and customer acquisition challenges need to be addressed for sustained long-term growth.

The stock shows bullish tendencies with recent price increases and positive SMA trends. However, neutral RSI and stagnant customer sentiment on job boards and social platforms temper this optimism.

Given the AI score of 47, which implies holding the stock, and considering both the positive and concerning aspects of the analysis, a cautious approach is advisable. Therefore, my recommendation would be to hold First Horizon stock while closely monitoring upcoming financial reports and market conditions.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.