Jim Cramer’s Bullish Bet on Zions Bancorporation: Why the Regional Bank Stands Out in 2025

As markets grapple with inflation fears, Fed rate uncertainty, and geopolitical tensions, Jim Cramer has turned his attention to a regional banking powerhouse: Zions Bancorporation (ZION). The Mad Money host recently highlighted the bank’s resilience amid headwinds, praising its dividend yield and upcoming earnings report as key catalysts for investors. Let’s dissect why Zions is catching Cramer’s eye—and whether it’s worth a closer look.

The Earnings Catalyst: Q1 2025 Growth Signals Strength

Zions is set to report Q1 2025 earnings on April 21, with analysts forecasting EPS of $1.18, a 23% jump from the same period in 2024. Revenue is also expected to rise to $794.82 million, reflecting steady demand for commercial lending and wealth management services.

Cramer sees this as a critical moment for the bank. While he acknowledges the broader banking sector faces scrutiny over dividend sustainability, Zions’ 3.97% dividend yield—among the highest in its peer group—has drawn income-seeking investors. Analyst Mike Mayo of Wells Fargo, however, tempered optimism, lowering Zions’ price target to $58 but maintaining an “Equal-Weight” rating.

Dividend Yield: A Double-Edged Sword?

Zions’ dividend yield isn’t just a headline grabber—it’s mathematically compelling. At its recent price of $43.36, the bank’s annual dividend of $1.72 per share translates to $100 in monthly income for investors holding 698 shares, requiring a $30,265 initial investment.

But dividends are tied to earnings stability. If Zions misses its Q1 estimates or faces loan-loss pressures, payouts could come under threat. Cramer urges caution here, noting that regional banks often face “suspect” skepticism due to their reliance on interest margins.

Stock Performance: A Bargain in a Volatile Market?

Zions’ stock has lagged the broader market in 2025, falling 1% to $43.36 amid the S&P 500’s 5.9% YTD decline. This dip has created a potential buying opportunity for long-term investors, especially given its dividend allure.

Cramer argues that Zions’ valuation—trading at just 10x forward earnings—is a bargain compared to tech giants like Apple or Microsoft. However, the bank isn’t immune to macro risks: rising interest rates could squeeze borrowers, while trade wars with China (a key market for Zions’ commercial clients) add uncertainty.

The Bigger Picture: Banking’s Relative Strength

In a market where sectors like defense and consumer goods are under pressure, banking stocks have been relative outperformers. Cramer credits this to strong earnings momentum and robust capital ratios. Zions, with its $75 billion in assets and diversified footprint across 10 western states, has weathered storms better than smaller peers.

Yet, Cramer’s advice remains balanced: “Don’t go all-in, but don’t ignore the yield.” He suggests using the earnings report as a litmus test—if Zions exceeds expectations, its stock could rebound toward the $50s.

Conclusion: A Dividend Play with Upside Risks

Zions Bancorporation isn’t a high-flying growth stock, but it offers a rare combination of resilience and income in today’s volatile market. Key takeaways:

1. Earnings Growth: The Q1 beat could validate its 23% EPS jump, reinforcing its financial health.
2. Dividend Appeal: At 3.97%, it’s one of the top yields in regional banks, though investors must monitor payout sustainability.
3. Valuation: At 10x forward earnings, it’s undervalued relative to peers, but geopolitical risks cloud the outlook.

The $58 price target from Wells Fargo, paired with Cramer’s focus on earnings resilience, suggests upside potential—if the bank can navigate macro challenges. For income investors willing to accept moderate risk, Zions could be a solid core holding. As Cramer often says: “Buy the dip, but watch the headlines.”

In a world of trade wars and Fed uncertainty, Zions’ regional focus and dividend might just be the steady hand investors need. The next 48 hours will tell.