U.S. Bancorp (USB) closed at $31.22 in the latest trading session, marking a -1.64% move from the prior day. This change lagged the S&P 500's 0.2% loss on the day. Elsewhere, the Dow lost 0.59%, while the tech-heavy Nasdaq lost 1.54%.
Prior to today's trading, shares of the company had gained 3.25% over the past month. This has outpaced the Finance sector's gain of 2.29% and lagged the S&P 500's gain of 4.14% in that time.
U.S. Bancorp will be looking to display strength as it nears its next earnings release, which is expected to be July 19, 2023. 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, our latest consensus estimate is calling for revenue of $7.17 billion, up 19.9% from the prior-year quarter.
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.
It is also important to note the recent changes to analyst estimates for U.S. Bancorp. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. The Zacks Consensus EPS estimate has moved 0.67% lower within the past month. U.S. Bancorp is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, U.S. Bancorp is holding a Forward P/E ratio of 6.91. This valuation marks a discount compared to its industry's average Forward P/E of 7.64.
Investors should also note that USB has a PEG ratio of 1.06 right now. 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 1.16 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 212, which puts it in the bottom 16% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
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