5 Most Undervalued Bank Stocks To Buy According To Hedge Funds

4. Comerica Incorporated (NYSE:CMA)

Number of Hedge Fund Holders: 45

P/E Ratio as of January 20: 9.24

Comerica Incorporated (NYSE:CMA) is a Texas-based company that provides various financial products and services. It operates through Commercial Bank, Retail Bank, Wealth Management, and Finance segments. Comerica Incorporated (NYSE:CMA) on January 19 reported a Q4 GAAP EPS of $2.58 and a revenue of $1.02 billion, outperforming Wall Street estimates by $0.03 and $10 million, respectively. The loans increased by $1.3 billion to $52.4 billion in the fourth quarter of 2022. It is one of the most undervalued bank stocks to invest in. 

On January 20, DA Davidson analyst Peter Winter raised the price target on Comerica Incorporated (NYSE:CMA) to $82 and maintained a Buy rating after the company’s Q4 earnings beat. He believes the stock’s forward earnings multiple assumption of 8.3-times is conservative and Comerica Incorporated (NYSE:CMA)’s long track record of best-in-class credit metrics should be positive for the company if the US economy enters a recession this year.

According to Insider Monkey’s Q3 data, 45 hedge funds were long Comerica Incorporated (NYSE:CMA), up from 38 funds in the prior quarter. Paul Marshall and Ian Wace’s Marshall Wace LLP is the leading position holder in the company, with 2.3 million shares worth $169 million.