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    Zions Bancorporation National Association (ZION) Could Be 7% Undervalued After Strong Q2 Earnings

    Simply Wall St·07/26/2026 06:19:50
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    Why Zions Bancorporation Stock Is Back in Focus After Q2 Earnings

    Zions Bancorporation National Association (ZION) is drawing fresh attention after reporting second quarter 2026 results that showed higher net interest income, net income and earnings per share compared with the same period last year.

    Alongside the earnings release, Zions Bancorporation also confirmed the completion of a share repurchase tranche, adding another data point for investors assessing how the bank is balancing capital returns with ongoing business performance.

    See our latest analysis for Zions Bancorporation National Association.

    For context, Zions Bancorporation National Association’s 90 day share price return of 10.67% and year to date share price return of 16.95% suggest building momentum. At the same time, the 1 year total shareholder return of 29.15% and 3 year total shareholder return approaching a 2x gain indicate that longer term holders have seen much stronger results than recent short term price moves might imply.

    If this earnings driven move has you looking beyond a single regional bank, it could be a helpful moment to widen your watchlist with 18 top founder-led companies

    After this strong earnings print and a share price that has already moved higher, the key tension for Zions Bancorporation stock now is simple: is most of the upside already reflected, or does the current valuation still leave room ahead?

    Most Popular Narrative: 7.3% Undervalued

    Compared with Zions Bancorporation National Association’s last close at $69.29, the most widely followed narrative pegs fair value modestly higher and builds that view around detailed earnings and margin assumptions.

    Analysts are assuming Zions Bancorporation National Association's revenue will remain fairly flat over the next 3 years. Analysts assume that profit margins will shrink from 31.4% today to 24.2% in 3 years time.

    Read the complete narrative.

    If you want to see what is really driving the valuation gap for Zions Bancorporation, the narrative lays out a clear set of revenue, margin and earnings expectations, along with the profit multiple that would need to hold in a few years for today’s price to line up with that fair value.

    Result: Fair Value of $74.71 (UNDERVALUED)

    Have a read of the narrative in full and understand what's behind the forecasts.

    However, there are still clear watchpoints for Zions Bancorporation, especially its 22% commercial real estate loan exposure and its sensitivity to higher deposit costs if competition intensifies.

    Find out about the key risks to this Zions Bancorporation National Association narrative.

    Next Steps

    Curious whether the balance of optimism and concern around Zions Bancorporation National Association matches your own read of the situation? Take a closer look at both sides of the story with 4 key rewards and 1 important warning sign

    Looking for more investment ideas beyond Zions Bancorporation?

    If Zions Bancorporation National Association has sharpened your interest in banks and beyond, do not stop here. Broaden your opportunity set with fresh ideas.

    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.