First Horizon (FHN): 20% Earnings Growth Backs Cramer’s Buy Call, But the Stock Is No Longer Cheap
Jim Cramer endorsed First Horizon (FHN) on July 27, saying it was “very inexpensive.” The bank’s Q2 results showed net income of $260 million (+12% YoY), EPS of $0.54, and adjusted EPS up 20%, with revenue at $887 million. Loans rose about $2B YoY and deposits $1.6B sequentially, while ROE exceeded 15%.
How this was made
The 30-second read
Why it matters
The article uses Q2 results (net income, EPS, loan and deposit growth, ROE) plus buybacks to support a bullish view, but it challenges the “inexpensive” label by citing tangible book multiple and above-average valuation.
Market read
Traders get a sentiment overlay on top of already-reported Q2 metrics, with the main actionable takeaway being that valuation appears less discounted than the headline implies.
What to watch
The article does not quantify the sustainability of deposit-cost trends or provide forward guidance, so the margin risk may be underweighted versus the valuation argument.
Background
Regional banks are rebuilding credibility after 2023 deposit outflows, with Fed rate cuts easing funding costs and loan growth improving in parts of the US South.
Ticker impact
Article ties First Horizon’s Q2 results to Jim Cramer’s endorsement and discusses valuation, NIM pressure, and buybacks affecting the stock outlook.
Near-term sentiment may stay supported by the earnings beat narrative and buyback-driven EPS lift, but the “not cheap” framing can cap fresh multiple-driven upside.
New decision-relevant facts are limited to the cited Q2 datapoints and the valuation comparison; Cramer’s endorsement is sentiment-driven rather than a new fundamental catalyst.
Market effects
Supports the regional bank recovery narrative (rate cuts easing funding costs) while highlighting that deposit-cost pressure can still compress NIMs.
Emphasizes loan growth and deposit stabilization in the Southeast and Mid-South, reinforcing regional bank read-through.
Limited, as the story is primarily company-specific and US regional banking sentiment.
Counterpoint
If deposit costs keep rising, NIM slippage could offset buyback EPS accretion, making the “premium to history” valuation harder to justify.
Key entities
- companyFirst Horizon Corporation
Memphis-based regional lender discussed as the subject of Cramer’s endorsement and the recipient of the Q2 performance datapoints.
- personJim Cramer
Mad Money host whose July 27 lightning-round endorsement is cited as a public sentiment nudge.
