Since February 2026, First Horizon has been in a holding pattern, posting a small return of 2.2% while floating around $24.65. The stock also fell short of the S&P 500’s 10.9% gain during that period.
Is now the time to buy First Horizon, or should you be careful about including it in your portfolio? Get the full breakdown from our expert analysts, it’s free.
Why Is First Horizon Not Exciting?
We don’t have much confidence in First Horizon. Here are three reasons we avoid FHN, plus one stock we’d rather own.
1. Net Interest Income Points to Soft Demand
Net interest income commands greater market attention due to its reliability and consistency, whereas one-time fees are often seen as lower-quality revenue that lacks the same dependable characteristics.
First Horizon’s net interest income has grown at a 5.5% annualized rate over the last five years, worse than the broader banking industry. Its growth was driven by both an increase in its outstanding loans and net interest margin, which represents how much a bank earns in relation to its outstanding loan book.
2. Projected Net Interest Income Growth Is Slim
Forecasted net interest income by Wall Street analysts signals a company’s potential. Predictions may not always be accurate, but accelerating growth typically boosts valuation multiples and stock prices while slowing growth does the opposite.
Over the next 12 months, sell-side analysts expect First Horizon’s net interest income to rise by 2.6%, a slight deceleration versus its 4.3% annualized growth for the past two years. This projection is slightly below its 4.3% annualized growth rate for the past two years.
3. EPS Barely Growing
We track the long-term change in earnings per share (EPS) because it highlights whether a company’s growth is profitable.
First Horizon’s weak 2% annual EPS growth over the last five years aligns with its revenue performance. On the bright side, this tells us its incremental sales were profitable.
Final Judgment
First Horizon isn’t a terrible business, but it doesn’t pass our bar. With its shares underperforming the market lately, the stock trades at 1.3× forward P/B (or $24.65 per share). Beauty is in the eye of the beholder, but we don’t really see a big opportunity at the moment. We’re pretty confident there are superior stocks to buy right now. Let us point you toward an all-weather company that owns household favorite Taco Bell.
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