Strength Seen in Truist Financial Corporation (TFC): Can Its 9.0% Jump Turn into More Strength?

·2 min read

Truist Financial Corporation (TFC) shares ended the last trading session 9% higher at $33.70. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 36.3% loss over the past four weeks.

Shares of Truist Financial rallied for the second consecutive day. A statement from the Treasury Secretary Janet Yellen about readiness of the administration to protect banks by taking additional steps as the industry faces worst crisis since 2008 resulted in positive investor sentiments. This drove the TFC stock higher.

This company is expected to post quarterly earnings of $1.16 per share in its upcoming report, which represents a year-over-year change of -5.7%. Revenues are expected to be $6.11 billion, up 14.8% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Truist Financial Corporation, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on TFC going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Truist Financial Corporation is a member of the Zacks Banks - Major Regional industry. One other stock in the same industry, The Bank of New York Mellon Corporation (BK), finished the last trading session 4.3% higher at $45.14. BK has returned -16% over the past month.

The Bank of New York Mellon Corporation's consensus EPS estimate for the upcoming report has changed +0.3% over the past month to $1.08. Compared to the company's year-ago EPS, this represents a change of +25.6%. The Bank of New York Mellon Corporation currently boasts a Zacks Rank of #2 (Buy).

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