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Truist Financial Corporation (TFC) Dips More Than Broader Markets: What You Should Know

Truist Financial Corporation (TFC) closed at $30.40 in the latest trading session, marking a -1.14% move from the prior day. This change lagged the S&P 500's daily loss of 0.73%. Elsewhere, the Dow lost 0.77%, while the tech-heavy Nasdaq lost 7.92%.

Coming into today, shares of the company had gained 1.05% in the past month. In that same time, the Finance sector lost 1.75%, while the S&P 500 gained 0.5%.

Wall Street will be looking for positivity from Truist Financial Corporation as it approaches its next earnings report date. The company is expected to report EPS of $1.08, down 10% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $6.11 billion, up 8.13% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.30 per share and revenue of $24.38 billion, which would represent changes of -13.31% and +5.83%, respectively, from the prior year.

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Investors might also notice recent changes to analyst estimates for Truist Financial Corporation. Recent revisions tend to reflect the latest near-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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 2.95% lower. Truist Financial Corporation currently has a Zacks Rank of #4 (Sell).

Digging into valuation, Truist Financial Corporation currently has a Forward P/E ratio of 7.15. This valuation marks a discount compared to its industry's average Forward P/E of 7.53.

It is also worth noting that TFC currently has a PEG ratio of 1.6. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Banks - Major Regional stocks are, on average, holding a PEG ratio of 1.15 based on yesterday's closing prices.

The Banks - Major Regional industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 231, which puts it in the bottom 9% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.

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Truist Financial Corporation (TFC) : Free Stock Analysis Report

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