Why Truist Financial Corporation (TFC) Outpaced the Stock Market Today
Truist Financial Corporation (TFC) closed the most recent trading day at $37.27, moving +0.54% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.51%. Elsewhere, the Dow saw an upswing of 0.2%, while the tech-heavy Nasdaq appreciated by 0.58%.
Heading into today, shares of the company had gained 2.26% over the past month, lagging the Finance sector's gain of 4.57% and the S&P 500's gain of 2.94% 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 April 22, 2024. It is anticipated that the company will report an EPS of $0.79, marking a 27.52% fall compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.65 billion, down 7.44% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $3.35 per share and revenue of $22.31 billion, which would represent changes of -6.69% and -4.61%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Truist Financial Corporation. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, 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 0.97% lower. At present, Truist Financial Corporation boasts a Zacks Rank of #3 (Hold).
In terms of valuation, Truist Financial Corporation is currently trading at a Forward P/E ratio of 11.06. Its industry sports an average Forward P/E of 11.06, so one might conclude that Truist Financial Corporation is trading at no noticeable deviation comparatively.
Meanwhile, TFC's PEG ratio is currently 1.58. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Banks - Major Regional industry was having an average PEG ratio of 1.56.
The Banks - Major Regional industry is part of the Finance sector. This group has a Zacks Industry Rank of 57, putting it in the top 23% of all 250+ industries.
The Zacks Industry Rank is ordered 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Truist Financial Corporation (TFC) : Free Stock Analysis Report
