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

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Deutsche Bank (DB - Free Report) closed the most recent trading day at $10.32, moving -1.71% from the previous trading session. This change lagged the S&P 500's 1.76% gain on the day. At the same time, the Dow added 1.17%, and the tech-heavy Nasdaq gained 3.03%.

Prior to today's trading, shares of the bank had lost 14.5% over the past month. This has lagged the Finance sector's loss of 11.12% and the S&P 500's loss of 5.94% in that time.

Deutsche Bank will be looking to display strength as it nears its next earnings release.

DB's full-year Zacks Consensus Estimates are calling for earnings of $1.90 per share and revenue of $29.72 billion. These results would represent year-over-year changes of -3.06% and +3.44%, respectively.

It is also important to note the recent changes to analyst estimates for Deutsche Bank. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Deutsche Bank is currently sporting a Zacks Rank of #1 (Strong Buy).

Looking at its valuation, Deutsche Bank is holding a Forward P/E ratio of 5.53. For comparison, its industry has an average Forward P/E of 7.42, which means Deutsche Bank is trading at a discount to the group.

Also, we should mention that DB has a PEG ratio of 0.85. 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 - Foreign was holding an average PEG ratio of 0.95 at yesterday's closing price.

The Banks - Foreign industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 17, which puts 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.

To follow DB in the coming trading sessions, be sure to utilize Zacks.com.


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