Truist Financial Corporation (TFC) Outpaces Stock Market Gains: What You Should Know
Truist Financial Corporation (TFC) closed the most recent trading day at $32.89, moving +0.98% from the previous trading session. This change outpaced the S&P 500's 0.56% gain on the day. Elsewhere, the Dow gained 0.41%, while the tech-heavy Nasdaq added 1.35%.
Heading into today, shares of the company had lost 30.23% over the past month, lagging the Finance sector's loss of 9.49% and the S&P 500's loss of 1.48% in that time.
Truist Financial Corporation will be looking to display strength as it nears its next earnings release, which is expected to be April 20, 2023. On that day, Truist Financial Corporation is projected to report earnings of $1.16 per share, which would represent a year-over-year decline of 5.69%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.11 billion, up 14.78% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.83 per share and revenue of $24.92 billion, which would represent changes of -2.62% and +8.17%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Truist Financial Corporation. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for 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.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Truist Financial Corporation currently has a Zacks Rank of #3 (Hold).
Digging into valuation, Truist Financial Corporation currently has a Forward P/E ratio of 6.74. For comparison, its industry has an average Forward P/E of 7.39, which means Truist Financial Corporation is trading at a discount to the group.
Also, we should mention that TFC has a PEG ratio of 1.36. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Banks - Major Regional was holding an average PEG ratio of 1.04 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 95, which puts it in the top 38% 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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