Truist Financial Corporation (TFC) Laps the Stock Market: Here's Why
The most recent trading session ended with Truist Financial Corporation (TFC) standing at $38.98, reflecting a +1.01% shift from the previouse trading day's closing. This move outpaced the S&P 500's daily gain of 0.11%. On the other hand, the Dow registered a gain of 0.12%, and the technology-centric Nasdaq decreased by 0.12%.
Shares of the company witnessed a gain of 10.86% over the previous month, beating the performance of the Finance sector with its gain of 4.21% and the S&P 500's gain of 3.55%.
Market participants will be closely following the financial results of Truist Financial Corporation in its upcoming release. The company plans to announce its earnings on April 22, 2024. On that day, Truist Financial Corporation is projected to report earnings of $0.78 per share, which would represent a year-over-year decline of 28.44%. Meanwhile, the latest consensus estimate predicts the revenue to be $5.65 billion, indicating a 7.48% decrease compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.39 per share and a revenue of $21.78 billion, representing changes of -5.57% and -6.9%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Truist Financial Corporation. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. As of now, Truist Financial Corporation holds a Zacks Rank of #3 (Hold).
From a valuation perspective, Truist Financial Corporation is currently exchanging hands at a Forward P/E ratio of 11.37. This expresses no noticeable deviation compared to the average Forward P/E of 11.37 of its industry.
One should further note that TFC currently holds a PEG ratio of 1.62. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Banks - Major Regional industry currently had an average PEG ratio of 1.68 as of yesterday's close.
The Banks - Major Regional industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 178, which puts it in the bottom 30% 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.
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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Truist Financial Corporation (TFC) : Free Stock Analysis Report
