In the latest trading session, U.S. Bancorp (USB) closed at $30.66, marking a -0.03% move from the previous day. Meanwhile, the Dow lost 0.15%, and the Nasdaq, a tech-heavy index, lost 2.33%.
Coming into today, shares of the company had lost 6.89% in the past month. In that same time, the Finance sector lost 2.32%, while the S&P 500 gained 1.03%.
U.S. Bancorp will be looking to display strength as it nears its next earnings release. In that report, analysts expect U.S. Bancorp to post earnings of $1.17 per share. This would mark year-over-year growth of 7.34%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.17 billion, up 19.9% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.59 per share and revenue of $28.73 billion, which would represent changes of +3.15% and +18.8%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for U.S. Bancorp. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.88% lower. U.S. Bancorp is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that U.S. Bancorp has a Forward P/E ratio of 6.68 right now. For comparison, its industry has an average Forward P/E of 7.47, which means U.S. Bancorp is trading at a discount to the group.
Meanwhile, USB's PEG ratio is currently 1.03. 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. The Banks - Major Regional industry currently had an average PEG ratio of 1.11 as of yesterday's close.
The Banks - Major Regional industry is part of the Finance sector. This group has a Zacks Industry Rank of 232, putting it in the bottom 8% 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.
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