In the latest trading session, U.S. Bancorp (USB) closed at $48.60, marking a +0.1% move from the previous day. This move outpaced the S&P 500’s daily loss of 0.28%. Elsewhere, the Dow gained 0.39%, while the tech-heavy Nasdaq lost 6.73%.
Heading into today, shares of the company had gained 6.4% over the past month, outpacing the Finance sector’s gain of 1.14% and the S&P 500’s gain of 2.48% in that time.
U.S. Bancorp will be looking to display strength as it nears its next earnings release. In that report, analysts expect U.S. Bancorp to post earnings of $1.19 per share. This would mark year-over-year growth of 20.2%. Our most recent consensus estimate is calling for quarterly revenue of $7.2 billion, up 29.22% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $5.01 per share and revenue of $29.49 billion, which would represent changes of +12.58% and +21.96%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for U.S. Bancorp. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.33% higher within the past month. U.S. Bancorp is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that U.S. Bancorp has a Forward P/E ratio of 9.69 right now. For comparison, its industry has an average Forward P/E of 9.81, which means U.S. Bancorp is trading at a discount to the group.
We can also see that USB currently has a PEG ratio of 1.49. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate. USB’s industry had an average PEG ratio of 1.49 as of yesterday’s close.
The Banks – Major Regional industry is part of the Finance sector. This group has a Zacks Industry Rank of 106, putting it in the top 43% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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