Truist Financial Corporation (TFC) closed at $31.74 in the latest trading session, marking a -1.06% move from the prior day. This change lagged the S&P 500's daily loss of 0.2%. Elsewhere, the Dow lost 0.59%, while the tech-heavy Nasdaq lost 1.54%.
Prior to today's trading, shares of the company had gained 11.82% over the past month. This has outpaced the Finance sector's gain of 2.29% and the S&P 500's gain of 4.14% in that time.
Wall Street will be looking for positivity from Truist Financial Corporation as it approaches its next earnings report date. This is expected to be July 20, 2023. On that day, Truist Financial Corporation is projected to report earnings of $1.08 per share, which would represent a year-over-year decline of 10%. Meanwhile, our latest consensus estimate is calling for revenue of $6.11 billion, up 8.13% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.30 per share and revenue of $24.38 billion. These totals would mark changes of -13.31% and +5.83%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Truist Financial Corporation. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 2.25% lower. Truist Financial Corporation currently has a Zacks Rank of #4 (Sell).
In terms of valuation, Truist Financial Corporation is currently trading at a Forward P/E ratio of 7.46. This represents a discount compared to its industry's average Forward P/E of 7.64.
Also, we should mention that TFC has a PEG ratio of 1.67. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Banks - Major Regional was holding an average PEG ratio of 1.16 at yesterday's closing price.
The Banks - Major Regional industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 212, which puts it in the bottom 16% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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