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U.S. Bancorp (USB) Gains But Lags Market: What You Should Know

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U.S. Bancorp (USB - Free Report) closed the most recent trading day at $46.31, moving +1.4% from the previous trading session. The stock lagged the S&P 500's daily gain of 2.28%. Elsewhere, the Dow gained 2.13%, while the tech-heavy Nasdaq added 5.02%.

Heading into today, shares of the company had gained 4.84% over the past month, outpacing the Finance sector's loss of 1.02% and the S&P 500's loss of 4.61% 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. On that day, U.S. Bancorp is projected to report earnings of $1.15 per share, which would represent year-over-year growth of 7.48%. Our most recent consensus estimate is calling for quarterly revenue of $6.65 billion, up 17.52% from the year-ago period.

Investors should also note any recent changes to analyst estimates for U.S. Bancorp. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.

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 has moved 0.97% lower. U.S. Bancorp currently has a Zacks Rank of #3 (Hold).

Digging into valuation, U.S. Bancorp currently has a Forward P/E ratio of 9.13. This represents a premium compared to its industry's average Forward P/E of 8.74.

We can also see that USB currently has a PEG ratio of 1.41. 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. Banks - Major Regional stocks are, on average, holding a PEG ratio of 1.28 based on yesterday's closing prices.

The Banks - Major Regional industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 99, which puts it in the top 40% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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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