Here's Why Truist Financial Corporation (TFC) Fell More Than Broader Market
The latest trading session saw Truist Financial Corporation (TFC) ending at $37.69, denoting a -0.95% adjustment from its last day's close. The stock fell short of the S&P 500, which registered a loss of 0.14% for the day. Elsewhere, the Dow lost 0.77%, while the tech-heavy Nasdaq added 0.17%.
The company's stock has climbed by 6.76% in the past month, exceeding the Finance sector's gain of 4.92% and the S&P 500's gain of 5.34%.
Analysts and investors alike will be keeping a close eye on the performance of Truist Financial Corporation in its upcoming earnings disclosure. The company's earnings report is set to go public on April 22, 2024. In that report, analysts expect Truist Financial Corporation to post earnings of $0.78 per share. This would mark a year-over-year decline of 28.44%. Simultaneously, our latest consensus estimate expects the revenue to be $5.65 billion, showing a 7.48% drop compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $3.35 per share and revenue of $22.08 billion, which would represent changes of -6.69% and -5.62%, respectively, from the prior year.
Any recent changes to analyst estimates for Truist Financial Corporation should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.3% lower within the past month. Truist Financial Corporation presently features a Zacks Rank of #3 (Hold).
From a valuation perspective, Truist Financial Corporation is currently exchanging hands at a Forward P/E ratio of 11.35. This indicates a discount in contrast to its industry's Forward P/E of 11.43.
It's also important to note that TFC currently trades at a PEG ratio of 1.62. 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. The Banks - Major Regional industry currently had an average PEG ratio of 1.66 as of yesterday's close.
The Banks - Major Regional industry is part of the Finance sector. This group has a Zacks Industry Rank of 95, putting it in the top 38% of all 250+ industries.
The Zacks Industry Rank is ordered 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Truist Financial Corporation (TFC) : Free Stock Analysis Report
