Back to top

Image: Bigstock

U.S. Bancorp (USB) Surpasses Market Returns: Some Facts Worth Knowing

Read MoreHide Full Article

The latest trading session saw U.S. Bancorp (USB - Free Report) ending at $41.96, denoting a +1.8% adjustment from its last day's close. The stock outperformed the S&P 500, which registered a daily gain of 0.52%. Meanwhile, the Dow gained 0.12%, and the Nasdaq, a tech-heavy index, added 0.9%.

Shares of the company have depreciated by 0.77% over the course of the past month, underperforming the Finance sector's gain of 2.95% and the S&P 500's gain of 3.85%.

The investment community will be closely monitoring the performance of U.S. Bancorp in its forthcoming earnings report. The company's upcoming EPS is projected at $0.90, signifying a 22.41% drop compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $6.72 billion, indicating a 5.87% decrease compared to the same quarter of the previous year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.93 per share and a revenue of $27.68 billion, indicating changes of -8.82% and -1.18%, respectively, from the former year.

It is also important to note the recent changes to analyst estimates for U.S. Bancorp. These latest adjustments often mirror the shifting dynamics of short-term business patterns. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.51% lower within the past month. As of now, U.S. Bancorp holds a Zacks Rank of #3 (Hold).

Investors should also note U.S. Bancorp's current valuation metrics, including its Forward P/E ratio of 10.48. This denotes a discount relative to the industry's average Forward P/E of 10.56.

Investors should also note that USB has a PEG ratio of 2.1 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Banks - Major Regional industry was having an average PEG ratio of 1.49.

The Banks - Major Regional industry is part of the Finance sector. With its current Zacks Industry Rank of 33, this industry ranks in the top 14% of all industries, numbering over 250.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

See More Zacks Research for These Tickers

Normally $25 each - click below to receive one report FREE:

U.S. Bancorp (USB) - free report >>

Published in