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Truist Financial Corporation (TFC) Increases Yet Falls Behind Market: What Investors Need to Know

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The most recent trading session ended with Truist Financial Corporation (TFC - Free Report) standing at $38, reflecting a +1.06% shift from the previouse trading day's closing. The stock lagged the S&P 500's daily gain of 1.41%. Meanwhile, the Dow gained 0.58%, and the Nasdaq, a tech-heavy index, added 2.2%.

Coming into today, shares of the company had gained 9.53% in the past month. In that same time, the Finance sector gained 5.34%, while the S&P 500 gained 2.9%.

The upcoming earnings release of Truist Financial Corporation will be of great interest to investors. The company's earnings report is expected on January 18, 2024. In that report, analysts expect Truist Financial Corporation to post earnings of $0.88 per share. This would mark a year-over-year decline of 32.31%. Alongside, our most recent consensus estimate is anticipating revenue of $5.63 billion, indicating a 9.34% downward movement from the same quarter last year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Truist Financial Corporation. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.17% downward. Truist Financial Corporation presently features a Zacks Rank of #3 (Hold).

From a valuation perspective, Truist Financial Corporation is currently exchanging hands at a Forward P/E ratio of 10.98. For comparison, its industry has an average Forward P/E of 10.66, which means Truist Financial Corporation is trading at a premium to the group.

Meanwhile, TFC's PEG ratio is currently 1.57. 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. By the end of yesterday's trading, the Banks - Major Regional industry had an average PEG ratio of 1.7.

The Banks - Major Regional industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 97, positioning it in the top 39% of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

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