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Fifth Third Bancorp (FITB) Gains But Lags Market: What You Should Know

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In the latest trading session, Fifth Third Bancorp (FITB - Free Report) closed at $25.26, marking a +0.84% move from the previous day. This change lagged the S&P 500's 1.31% gain on the day. Elsewhere, the Dow gained 1%, while the tech-heavy Nasdaq lost 4.19%.

Heading into today, shares of the company had lost 3.06% over the past month, lagging the Finance sector's loss of 1.33% and the S&P 500's gain of 2.12% in that time.

Fifth Third Bancorp will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.88, up 11.39% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $2.21 billion, up 9.73% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.47 per share and revenue of $8.98 billion. These totals would mark changes of +3.58% and +7.21%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Fifth Third Bancorp. These revisions help to show the ever-changing nature of near-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. Within the past 30 days, our consensus EPS projection has moved 2.5% lower. Fifth Third Bancorp is currently a Zacks Rank #4 (Sell).

Valuation is also important, so investors should note that Fifth Third Bancorp has a Forward P/E ratio of 7.21 right now. Its industry sports an average Forward P/E of 7.26, so we one might conclude that Fifth Third Bancorp is trading at a discount comparatively.

Meanwhile, FITB's PEG ratio is currently 0.87. 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 1.11 based on yesterday's closing prices.

The Banks - Major Regional industry is part of the Finance sector. This group has a Zacks Industry Rank of 231, putting it in the bottom 9% 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.

Make sure to utilize to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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