The most recent trading day saw U.S. Bancorp (USB) close at $31.86, down -0.03% from the previous trading session. The stock underperformed the S&P 500, which saw a day gain of 1.18%. The tech-heavy Nasdaq rose 1.6% at the same time as the Dow gained 0.87%.
Shares of the company have lost 10.55 percent of their value as of today, trailing both the S&P 500’s and the Finance sector’s monthly losses of 4.4% and 5.17%, respectively.
The performance of U.S. Bancorp’s earnings will be closely watched by the investment world in its impending release. On October 18, 2023, the corporation is expected to report its financial results. The company is anticipated to announce EPS of $1.06, representing a decrease of 10.17 percent from the same quarter last year. Meanwhile, according to the most recent average forecast, revenue will come in at $7.02 billion, up 11.42% from the same quarter last year.
Zacks Consensus Estimates for USB’s full year predict $4.39 per share in earnings and $28.26 billion in revenue. These outcomes would signify annual changes of -1.35 and 16.84 percent, respectively.
Investors would also benefit from keeping an eye on any recent changes in analyst expectations for US Bancorp. These most recent changes typically indicate how quickly short-term business trends change. As a result, predictions that have been revised upward reflect analysts’ optimism regarding the company’s business operations and profitability potential.
According to research, these estimate adjustments are directly tied to the momentum of the short-term share price. To benefit from this, we developed the Zacks Rank, a unique methodology that takes these anticipated changes into account and provides an operational rating system.
According to external audits, the Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has a remarkable track record of outperforming expectations, with companies at #1 generating an average yearly return of +25% since 1988. The Zacks Consensus EPS estimate has decreased by 1.16% over the previous month. The Zacks Rank for U.S. Bancorp is currently #4 (Sell).
U.S. Bancorp is now trading at a Forward P/E ratio of 7.26, which reflects its valuation. Compared to the Forward P/E of 7.67 for its sector, this is a bargain.
It’s also important to remember that USB currently has a PEG ratio of 1.45. Comparable to the popular P/E ratio, the PEG ratio also considers the company’s anticipated earnings growth rate. The Banks – Major Regional industry had an average PEG ratio of 1.22 as of yesterday’s market closing.
The Finance sector includes the Major Regional Banks industry. With a Zacks Industry Rank of 190, this category is in the lowest 25% out of more than 250 industries.
By computing the average Zacks Rank of the individual stocks included in the groupings, the Zacks Industry Rank evaluates the strength of our various industry groups. According to our analysis, the top 50% of graded industries perform two times better than the bottom 50%.
To watch these and other stock-moving measures over the forthcoming trading sessions, remember to use Zacks.com.