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Truist Financial Corporation (TFC) Ascends But Remains Behind Market: Some Facts to Note

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Truist Financial Corporation (TFC - Free Report) closed at $34.98 in the latest trading session, marking a +0.49% move from the prior day. The stock's performance was behind the S&P 500's daily gain of 0.52%. At the same time, the Dow added 0.12%, and the tech-heavy Nasdaq gained 0.9%.

Coming into today, shares of the company had lost 6.07% in the past month. In that same time, the Finance sector gained 2.95%, while the S&P 500 gained 3.85%.

Market participants will be closely following the financial results of Truist Financial Corporation in its upcoming release. The company is expected to report EPS of $0.79, down 27.52% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $5.65 billion, indicating a 7.44% decline compared to the corresponding quarter of the prior year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $3.35 per share and revenue of $22.31 billion, indicating changes of -6.69% and -4.61%, respectively, compared to the previous year.

Any recent changes to analyst estimates for Truist Financial Corporation should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Within the past 30 days, our consensus EPS projection has moved 1.63% lower. As of now, Truist Financial Corporation holds a Zacks Rank of #3 (Hold).

From a valuation perspective, Truist Financial Corporation is currently exchanging hands at a Forward P/E ratio of 10.39. This denotes a discount relative to the industry's average Forward P/E of 10.56.

One should further note that TFC currently holds a PEG ratio of 1.48. 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 had an average PEG ratio of 1.49 as trading concluded yesterday.

The Banks - Major Regional industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 33, finds itself in the top 14% echelons of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow TFC in the coming trading sessions, be sure to utilize Zacks.com.


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