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U.S. Bancorp (USB) Dips More Than Broader Markets: What You Should Know

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U.S. Bancorp (USB - Free Report) closed at $35.06 in the latest trading session, marking a -1.63% move from the prior day. This change lagged the S&P 500's daily loss of 0.58%. At the same time, the Dow lost 0.59%, and the tech-heavy Nasdaq lost 1.54%.

Prior to today's trading, shares of the company had lost 24.36% over the past month. This has lagged the Finance sector's loss of 6.39% and the S&P 500's gain of 2% 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 April 19, 2023. On that day, U.S. Bancorp is projected to report earnings of $1.17 per share, which would represent year-over-year growth of 18.18%. Our most recent consensus estimate is calling for quarterly revenue of $7.17 billion, up 28.82% from the year-ago period.

USB's full-year Zacks Consensus Estimates are calling for earnings of $4.94 per share and revenue of $29.28 billion. These results would represent year-over-year changes of +11.01% and +21.07%, respectively.

Investors might also notice recent changes to analyst estimates for U.S. Bancorp. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 1.27% lower within the past month. U.S. Bancorp is currently a Zacks Rank #3 (Hold).

In terms of valuation, U.S. Bancorp is currently trading at a Forward P/E ratio of 7.22. For comparison, its industry has an average Forward P/E of 7.94, which means U.S. Bancorp is trading at a discount to the group.

Investors should also note that USB has a PEG ratio of 1.11 right now. 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. The Banks - Major Regional was holding an average PEG ratio of 1.08 at yesterday's closing price.

The Banks - Major Regional industry is part of the Finance sector. This group has a Zacks Industry Rank of 183, putting it in the bottom 28% 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.

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


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