In the latest trading session, U.S. Bancorp (USB) closed at $45.87, marking no change from the previous day. This change was narrower than the S&P 500's daily loss of 0.72%. Elsewhere, the Dow lost 0.45%, while the tech-heavy Nasdaq lost 0.27%.
Coming into today, shares of the company had lost 6.41% in the past month. In that same time, the Finance sector lost 7.06%, while the S&P 500 lost 9.06%.
Investors will be hoping for strength from U.S. Bancorp as it approaches its next earnings release. In that report, analysts expect U.S. Bancorp to post earnings of $1.17 per share. This would mark a year-over-year decline of 10%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.26 billion, up 6.79% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.45 per share and revenue of $24.51 billion, which would represent changes of -12.75% and +7.87%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for U.S. Bancorp. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.31% lower within the past month. U.S. Bancorp is currently a Zacks Rank #3 (Hold).
In terms of valuation, U.S. Bancorp is currently trading at a Forward P/E ratio of 10.31. Its industry sports an average Forward P/E of 10.31, so we one might conclude that U.S. Bancorp is trading at a no noticeable deviation comparatively.
Investors should also note that USB has a PEG ratio of 1.59 right now. 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. The Banks - Major Regional was holding an average PEG ratio of 1.27 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 86, which puts it in the top 35% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
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