Truist Financial Corporation (TFC) Stock Falls Amid Market Uptick: What Investors Need to Know
Truist Financial Corporation (TFC) ended the recent trading session at $36.74, demonstrating a -1.61% swing from the preceding day's closing price. The stock's performance was behind the S&P 500's daily gain of 0.08%. Meanwhile, the Dow lost 0.31%, and the Nasdaq, a tech-heavy index, added 0.02%.
Prior to today's trading, shares of the company had lost 0.8% over the past month. This has lagged the Finance sector's gain of 0.69% and the S&P 500's gain of 3.52% in that time.
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 January 18, 2024. On that day, Truist Financial Corporation is projected to report earnings of $0.88 per share, which would represent a year-over-year decline of 32.31%. Simultaneously, our latest consensus estimate expects the revenue to be $5.64 billion, showing a 9.21% drop compared to the year-ago quarter.
Investors should also note any recent changes to analyst estimates for Truist Financial Corporation. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.54% lower. Right now, Truist Financial Corporation possesses a Zacks Rank of #3 (Hold).
Investors should also note Truist Financial Corporation's current valuation metrics, including its Forward P/E ratio of 10.94. This valuation marks a premium compared to its industry's average Forward P/E of 10.47.
Investors should also note that TFC has a PEG ratio of 1.56 right now. 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. As of the close of trade yesterday, the Banks - Major Regional industry held an average PEG ratio of 1.56.
The Banks - Major Regional industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 34, placing it within the top 14% of over 250 industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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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Truist Financial Corporation (TFC) : Free Stock Analysis Report
