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Deutsche Bank (DB) Outpaces Stock Market Gains: What You Should Know

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Deutsche Bank (DB - Free Report) closed at $12.30 in the latest trading session, marking a +1.4% move from the prior day. This change outpaced the S&P 500's 0.14% gain on the day. At the same time, the Dow lost 0.18%, and the tech-heavy Nasdaq gained 1.54%.

Heading into today, shares of the bank had lost 2.8% over the past month, outpacing the Finance sector's loss of 4.43% and the S&P 500's loss of 4.07% in that time.

Investors will be hoping for strength from Deutsche Bank as it approaches its next earnings release.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.90 per share and revenue of $29.72 billion, which would represent changes of -3.06% and +3.44%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Deutsche Bank. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

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.

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. The Zacks Consensus EPS estimate has moved 3.83% higher within the past month. Deutsche Bank is currently sporting a Zacks Rank of #1 (Strong Buy).

Valuation is also important, so investors should note that Deutsche Bank has a Forward P/E ratio of 6.38 right now. For comparison, its industry has an average Forward P/E of 8.11, which means Deutsche Bank is trading at a discount to the group.

Also, we should mention that DB has a PEG ratio of 0.98. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Banks - Foreign stocks are, on average, holding a PEG ratio of 1.06 based on yesterday's closing prices.

The Banks - Foreign industry is part of the Finance sector. This group has a Zacks Industry Rank of 17, putting it in the top 7% of all 250+ industries.

The Zacks Industry Rank includes is listed in order 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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