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Truist Financial Corporation (TFC) Outpaces Stock Market Gains: What You Should Know
Truist Financial Corporation (TFC - Free Report) closed the most recent trading day at $47.57, moving +0.83% from the previous trading session. This change outpaced the S&P 500's 0.4% gain on the day. Elsewhere, the Dow gained 0.33%, while the tech-heavy Nasdaq lost 1.1%.
Heading into today, shares of the company had gained 13.71% over the past month, outpacing the Finance sector's gain of 3.81% and the S&P 500's loss of 0.01% in that time.
Wall Street will be looking for positivity from Truist Financial Corporation as it approaches its next earnings report date. This is expected to be January 19, 2023. The company is expected to report EPS of $1.28, down 7.25% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $6.13 billion, up 10.16% from the prior-year quarter.
It is also important to note the recent changes to analyst estimates for Truist Financial Corporation. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
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. The Zacks Consensus EPS estimate has moved 2.73% lower within the past month. Truist Financial Corporation is currently a Zacks Rank #3 (Hold).
In terms of valuation, Truist Financial Corporation is currently trading at a Forward P/E ratio of 9.53. Its industry sports an average Forward P/E of 9.53, so we one might conclude that Truist Financial Corporation is trading at a no noticeable deviation comparatively.
We can also see that TFC currently has a PEG ratio of 1.19. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Banks - Major Regional stocks are, on average, holding a PEG ratio of 1.43 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 89, which puts it in the top 36% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.