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The PNC Financial Services Group, Inc (PNC) Laps the Stock Market: Here's Why

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The PNC Financial Services Group, Inc (PNC - Free Report) closed the most recent trading day at $128.70, moving +0.59% from the previous trading session. The stock exceeded the S&P 500, which registered a gain of 0.06% for the day. Elsewhere, the Dow gained 0.33%, while the tech-heavy Nasdaq lost 0.11%.

The company's stock has climbed by 11.88% in the past month, exceeding the Finance sector's gain of 9.23% and the S&P 500's gain of 8.22%.

The investment community will be paying close attention to the earnings performance of The PNC Financial Services Group, Inc in its upcoming release. The company is predicted to post an EPS of $3, indicating a 14.04% decline compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.27 billion, down 8.5% from the year-ago period.

PNC's full-year Zacks Consensus Estimates are calling for earnings of $13.86 per share and revenue of $21.43 billion. These results would represent year-over-year changes of -0.72% and +1.46%, respectively.

Any recent changes to analyst estimates for The PNC Financial Services Group, Inc should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.74% higher. As of now, The PNC Financial Services Group, Inc holds a Zacks Rank of #3 (Hold).

In terms of valuation, The PNC Financial Services Group, Inc is presently being traded at a Forward P/E ratio of 9.23. This denotes a premium relative to the industry's average Forward P/E of 8.63.

We can additionally observe that PNC currently boasts a PEG ratio of 1.14. 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. The Banks - Major Regional industry currently had an average PEG ratio of 1.34 as of yesterday's close.

The Banks - Major Regional industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 86, positioning it in the top 35% 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.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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