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For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.
The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.
What if you'd invested in The PNC Financial Services Group, Inc (PNC) ten years ago? It may not have been easy to hold on to PNC for all that time, but if you did, how much would your investment be worth today?
The PNC Financial Services Group, Inc's Business In-Depth
With that in mind, let's take a look at The PNC Financial Services Group, Inc's main business drivers.
Headquartered in Pittsburgh and incepted in 1983, PNC Financial Services Group, Inc. provides consumer and business banking services. The group's principal subsidiary is PNC Bank.
PNC Financial reports mainly through three business segments. Retail Banking provides deposit, lending, brokerage, insurance services, investment management, and cash management services to consumer and small business customers through branch network, ATMs, call centers, and online & mobile banking channels.
Corporate and Institutional Banking segment provides lending, treasury management, and capital markets-related products and services to mid-sized and large corporations, government entities and not-for-profit organizations.
Asset Management Group provides a wide range of wealth management products and services to individuals and their families, multi-generational family planning services to ultra-high net worth clients. Institutional asset management operating unit serves as an investment manager and trustee for companies, non-profit organizations and retirement plans across the country.
The Other category includes residual activities that do not meet the criteria for disclosure as a separate reportable business.
On Jun 1, 2021, PNC Financial acquired BBVA USA Bancshares Inc. and its U.S. banking subsidiary, BBVA USA. The company shelled out $11.5 billion in cash for the acquisition, and added $82.2 billion of deposits and $60.5 billion of loans to its balance sheet.
In April 2017, PNC Financial acquired U.S.-based commercial and vendor finance business of ECN Capital Corp in an all-cash transaction valued at $1.1 billion. In December 2017, it acquired The Trout Group, LLC, an investor relations and strategic advisory firm. PNC Financial also acquired Fortis Advisors with a view to expand advisory business.
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in The PNC Financial Services Group, Inc a decade ago, you're probably feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in August 2011 would be worth $4,152.65, or a gain of 315.26%, as of August 30, 2021, and this return excludes dividends but includes price increases.
Compare this to the S&P 500's rally of 283.19% and gold's return of -2.13% over the same time frame.
Analysts are anticipating more upside for PNC.
Shares of PNC Financial have outperformed the industry in the past year. The company has an impressive earnings surprise history, with earnings surpassing the Zacks Consensus Estimate in all four trailing quarters. Second-quarter 2021 results were supported by fee income growth on higher asset management revenues, while higher expenses were negatives. Its focus to expand the middle-market lending franchise, and bolster digital products and service offerings bodes well. Given a strong balance sheet position, the execution of inorganic growth strategies to diversify revenue sources is likely to support the performance. However, continuously mounting expenses will likely keep hurting the bottom line of PNC Financial in the near term. Net interest margin (NIM) is anticipated to remain under pressure in the near term due to low interest rates.
The stock is up 6.63% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 7 higher, for fiscal 2021. The consensus estimate has moved up as well.
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The PNC Financial Services Group, Inc (PNC) : Free Stock Analysis Report
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