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U.S. Bancorp (USB) Stock Sinks As Market Gains: Here's Why

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U.S. Bancorp (USB - Free Report) ended the recent trading session at $43.09, demonstrating a -0.37% swing from the preceding day's closing price. This change lagged the S&P 500's daily gain of 0.51%. Elsewhere, the Dow saw an upswing of 0.2%, while the tech-heavy Nasdaq appreciated by 0.58%.

The company's shares have seen an increase of 7.86% over the last month, surpassing the Finance sector's gain of 4.57% and the S&P 500's gain of 2.94%.

The investment community will be paying close attention to the earnings performance of U.S. Bancorp in its upcoming release. The company is slated to reveal its earnings on April 17, 2024. The company is predicted to post an EPS of $0.90, indicating a 22.41% decline compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $6.72 billion, indicating a 5.87% downward movement from the same quarter last year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.93 per share and a revenue of $27.68 billion, representing changes of -8.82% and -1.18%, respectively, from the prior year.

It's also important for investors to be aware of any recent modifications to analyst estimates for U.S. Bancorp. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. U.S. Bancorp is currently a Zacks Rank #3 (Hold).

Looking at its valuation, U.S. Bancorp is holding a Forward P/E ratio of 10.99. This indicates a discount in contrast to its industry's Forward P/E of 11.06.

We can also see that USB currently has a PEG ratio of 2.2. 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 1.56 as trading concluded yesterday.

The Banks - Major Regional industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 57, which puts it in the top 23% 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.

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