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Is The PNC Financial Services Group, Inc. (NYSE:PNC) The Best Local Bank Stock?

Local bank stocks in the US have been among some of the most watched over the past few years. This is because of high interest rates, which offer banks the ability to make more money but also create risks of high costs and portfolio sustainability. Within this turmoil, local bank stock performance has been mixed. Year to date, the KBW Regional Banking Index has lost more than 7% while the Dow Jones U.S. Select Regional Banks Index gained 2%. So, we thought to look at 12 Best Local Bank Stocks to Invest in Now and in this piece we'll see if The PNC Financial Services Group, Inc. (NYSE:PNC) is a top local bank stock.

The PNC Financial Services Group, Inc. (NYSE:PNC)

The PNC Financial Services Group, Inc. (NYSE:PNC) is one of the largest regional banks in America with more than fifty thousand employees. It is headquartered in Pittsburgh, Pennsylvania. The PNC Financial Services Group, Inc. (NYSE:PNC) caters to the needs of retail and business customers. It provides standard banking services as well as those catering to institutional clients and high net worth individuals.

Taking A Look At The PNC Financial Services Group, Inc. (NYSE:PNC)'s Recent Performance

Like other local banks, The PNC Financial Services Group, Inc. (NYSE:PNC)'s first quarter of 2024 earnings saw the bank struggle with the high costs that emanate from higher interest rates. For the quarter, the bank reported $3.36 in adjusted earnings per share which marked a hefty beat over analyst estimates of $3.01. However, The PNC Financial Services Group, Inc. (NYSE:PNC)'s net interest income of $3.26 billion missed analyst estimates of $3.29 billion.

The PNC Financial Services Group, Inc. (NYSE:PNC): What Are The Hedge Funds Doing?

Hedge fund sentiment is often heavily followed when analyzing stocks due to the funds' ability to conduct careful due diligence. For The PNC Financial Services Group, Inc. (NYSE:PNC), the bank saw 52 hedge fund investors according to Insider Monkey's database for Q1 2024 filings. As opposed to some other local banks this marked a heavy jump from the 37 funds that had held a stake in The PNC Financial Services Group, Inc. (NYSE:PNC) in the previous quarter. However, the stakes were valued at $764 million which was lower than Q4 2023's value of $821 million.

The PNC Financial Services Group, Inc. (NYSE:PNC) & Analyst Sentiment

The average of 20 one year analyst share price targets for The PNC Financial Services Group, Inc. (NYSE:PNC) is $168 while the average share rating is Buy. Big ticket names such as JPMorgan and Evercore ISI have rated the shares as Overweight and Outperform. JPMorgan's latest analyst note was issued in May 2024, and while it kept the rating at Overweight, it cut The PNC Financial Services Group, Inc. (NYSE:PNC)'s share price target to $163 from $165.

Is The PNC Financial Services Group, Inc. (NYSE:PNC) The Best Local Bank Stock?

Higher costs from high rates and the fear of further turmoil in commercial real estate have left investors wary about regional bank and local bank stocks. After all, no one wants a repeat of last year's banking crisis. This makes us wonder whether The PNC Financial Services Group, Inc. (NYSE:PNC) sits at the top of the food chain in local bank stocks. While local banks suffer from being concentrated across only a handful of geographies, diversified bank stocks are often able to maintain solid business models even in turmoil.

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For some such stocks, you can read 11 Best Diversified Bank Stocks to Invest In.

Overall, PNC Financial Services ranks 2nd on our list of the 12 Best Local Bank Stocks to Buy.

 

Disclosure: None. Is The PNC Financial Services Group, Inc. (NYSE:PNC) The Best Local Bank Stock? was originally published on Insidermonkey.com.