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U.S. Bancorp (USB) Gains As Market Dips: What You Should Know

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U.S. Bancorp (USB - Free Report) closed at $43.56 in the latest trading session, marking a +1.44% move from the prior day. This change outpaced the S&P 500's 0.19% loss on the day. Elsewhere, the Dow gained 0.01%, while the tech-heavy Nasdaq lost 0.09%.

Prior to today's trading, shares of the company had lost 2.78% over the past month. This has lagged the Finance sector's gain of 3.08% and the S&P 500's gain of 4.7% in that time.

Investors will be hoping for strength from U.S. Bancorp as it approaches its next earnings release, which is expected to be January 25, 2023. The company is expected to report EPS of $1.14, up 6.54% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.59 billion, up 16.42% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.38 per share and revenue of $24.48 billion, which would represent changes of -14.12% and +7.76%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for U.S. Bancorp. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. The Zacks Consensus EPS estimate remained stagnant within the past month. U.S. Bancorp is currently a Zacks Rank #3 (Hold).

Investors should also note U.S. Bancorp's current valuation metrics, including its Forward P/E ratio of 9.81. For comparison, its industry has an average Forward P/E of 9.89, which means U.S. Bancorp is trading at a discount to the group.

Investors should also note that USB has a PEG ratio of 1.51 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Banks - Major Regional was holding an average PEG ratio of 1.24 at yesterday's closing price.

The Banks - Major Regional industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 98, which puts it in the top 39% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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