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U.S. Bancorp (USB) Outperforms Broader Market: What You Need to Know

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U.S. Bancorp (USB - Free Report) closed at $38.12 in the latest trading session, marking a +0.87% move from the prior day. The stock's change was more than the S&P 500's daily gain of 0.38%. On the other hand, the Dow registered a gain of 1.47%, and the technology-centric Nasdaq decreased by 0.23%.

Prior to today's trading, shares of the company had gained 18.61% over the past month. This has outpaced the Finance sector's gain of 11.65% and the S&P 500's gain of 10.72% in that time.

The upcoming earnings release of U.S. Bancorp will be of great interest to investors. In that report, analysts expect U.S. Bancorp to post earnings of $0.99 per share. This would mark a year-over-year decline of 17.5%. Meanwhile, our latest consensus estimate is calling for revenue of $6.83 billion, up 7.82% from the prior-year quarter.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $4.32 per share and revenue of $28.15 billion. These totals would mark changes of -2.92% and +16.4%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for U.S. Bancorp. These latest adjustments often mirror the shifting dynamics of short-term business patterns. 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 capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. U.S. Bancorp presently features a Zacks Rank of #4 (Sell).

With respect to valuation, U.S. Bancorp is currently being traded at a Forward P/E ratio of 8.76. This indicates a discount in contrast to its industry's Forward P/E of 8.83.

We can also see that USB currently has a PEG ratio of 1.75. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Banks - Major Regional industry held an average PEG ratio of 1.39.

The Banks - Major Regional industry is part of the Finance sector. This group has a Zacks Industry Rank of 79, putting it in the top 32% of all 250+ industries.

The Zacks Industry Rank is ordered 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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