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Truist Financial Corporation (TFC) Stock Sinks As Market Gains: Here's Why

Truist Financial Corporation (TFC) closed the latest trading day at $32.12, indicating a -0.03% change from the previous session's end. This move lagged 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%.

The company's shares have seen an increase of 12.78% over the last month, surpassing the Finance sector's gain of 11.65% and the S&P 500's gain of 10.72%.

The investment community will be paying close attention to the earnings performance of Truist Financial Corporation in its upcoming release. The company's upcoming EPS is projected at $0.88, signifying a 32.31% drop compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $5.63 billion, indicating a 9.25% decrease compared to the same quarter of the previous year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.76 per share and a revenue of $24.58 billion, indicating changes of -24.19% and +6.71%, respectively, from the former year.

Investors should also take note of any recent adjustments to analyst estimates for Truist Financial Corporation. 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Within the past 30 days, our consensus EPS projection has moved 0.53% higher. Truist Financial Corporation currently has a Zacks Rank of #3 (Hold).

Looking at valuation, Truist Financial Corporation is presently trading at a Forward P/E ratio of 8.55. This denotes a discount relative to the industry's average Forward P/E of 8.83.

We can additionally observe that TFC currently boasts a PEG ratio of 1.91. 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 - Major Regional stocks are, on average, holding a PEG ratio of 1.39 based on yesterday's closing prices.

The Banks - Major Regional industry is part of the Finance sector. With its current Zacks Industry Rank of 79, this industry ranks in the top 32% of all industries, numbering over 250.

The Zacks Industry Rank gauges the strength of our 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.

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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Truist Financial Corporation (TFC) : Free Stock Analysis Report

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Zacks Investment Research