U.S. Bancorp (USB) Gains But Lags Market: What You Should Know
In the latest trading session, U.S. Bancorp (USB) closed at $43.57, marking a +0.51% move from the previous day. This change lagged the S&P 500's 1.75% gain on the day. At the same time, the Dow added 1.05%, and the tech-heavy Nasdaq gained 7.84%.
Coming into today, shares of the company had lost 4.49% in the past month. In that same time, the Finance sector lost 3.23%, while the S&P 500 lost 4.4%.
Investors will be hoping for strength from U.S. Bancorp as it approaches its next earnings release, which is expected to be January 25, 2023. On that day, U.S. Bancorp is projected to report earnings of $1.15 per share, which would represent year-over-year growth of 7.48%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.6 billion, up 16.62% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.39 per share and revenue of $24.5 billion, which would represent changes of -13.92% and +7.81%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for U.S. Bancorp. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Within the past 30 days, our consensus EPS projection has moved 0.3% higher. U.S. Bancorp is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, U.S. Bancorp is holding a Forward P/E ratio of 9.87. Its industry sports an average Forward P/E of 9.99, so we one might conclude that U.S. Bancorp is trading at a discount comparatively.
Also, we should mention that USB has a PEG ratio of 1.52. 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 1.3 at yesterday's closing price.
The Banks - Major Regional industry is part of the Finance sector. This group has a Zacks Industry Rank of 160, putting it in the bottom 37% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
U.S. Bancorp (USB) : Free Stock Analysis Report
