ZION - Zions: Looking More Interesting As The Scene Shifts From Recovery To Growth

• Zions posted what looked like a major second quarter beat, but the underlying results were much closer to core expectations, with an investment gain and reserve release boosting the numbers.
• Management has set the table for significant revenue and profit growth if/when the economy shifts toward expansion, including increased business investment and higher rates.
• Zions looks undervalued today, as low-to-mid single-digit core earnings growth can support a double-digit annualized return, but a lot does ride on a cooperative macro environment.

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