Truist Financial Corporation (TFC) closed at $28.16 in the latest trading session, marking a -0.74% move from the prior day. This change was narrower than the S&P 500's 1.64% loss on the day. At the same time, the Dow lost 1.08%, and the tech-heavy Nasdaq lost 1.82%.
Coming into today, shares of the company had lost 0.39% in the past month. In that same time, the Finance sector gained 1.93%, while the S&P 500 gained 0.89%.
Truist Financial Corporation will be looking to display strength as it nears its next earnings release, which is expected to be October 19, 2023. The company is expected to report EPS of $0.82, down 33.87% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $5.68 billion, down 2.87% from the prior-year quarter.
TFC's full-year Zacks Consensus Estimates are calling for earnings of $3.67 per share and revenue of $23.36 billion. These results would represent year-over-year changes of -26.01% and +1.43%, respectively.
Any recent changes to analyst estimates for Truist Financial Corporation should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.07% lower. Truist Financial Corporation currently has a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that Truist Financial Corporation has a Forward P/E ratio of 7.73 right now. This valuation marks a discount compared to its industry's average Forward P/E of 8.4.
Also, we should mention that TFC has a PEG ratio of 1.73. 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. The Banks - Major Regional was holding an average PEG ratio of 1.41 at yesterday's closing price.
The Banks - Major Regional industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 154, which puts it in the bottom 39% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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