U.S. Bancorp (USB) Exceeds Market Returns: Some Facts to Consider
The most recent trading session ended with U.S. Bancorp (USB) standing at $39.73, reflecting a +1.66% shift from the previouse trading day's closing. The stock exceeded the S&P 500, which registered a gain of 0.8% for the day. On the other hand, the Dow registered a gain of 0.18%, and the technology-centric Nasdaq increased by 1.37%.
Coming into today, shares of the company had gained 13.24% in the past month. In that same time, the Finance sector gained 6.2%, while the S&P 500 gained 4.39%.
The investment community will be paying close attention to the earnings performance of U.S. Bancorp in its upcoming release. The company is slated to reveal its earnings on January 17, 2024. It is anticipated that the company will report an EPS of $0.99, marking a 17.5% fall compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $6.83 billion, up 7.82% from the prior-year quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $4.32 per share and revenue of $28.15 billion, indicating changes of -2.92% and +16.4%, respectively, compared to the previous year.
Investors should also take note of any recent adjustments to analyst estimates for U.S. Bancorp. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. As of now, U.S. Bancorp holds a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that U.S. Bancorp has a Forward P/E ratio of 9.06 right now. For comparison, its industry has an average Forward P/E of 9.06, which means U.S. Bancorp is trading at no noticeable deviation to the group.
We can also see that USB currently has a PEG ratio of 1.81. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. By the end of yesterday's trading, the Banks - Major Regional industry had an average PEG ratio of 1.46.
The Banks - Major Regional industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 81, positioning it in the top 33% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow USB in the coming trading sessions, be sure to utilize Zacks.com.
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U.S. Bancorp (USB) : Free Stock Analysis Report
