Truist Financial Corporation (TFC) Exceeds Market Returns: Some Facts to Consider

Truist Financial Corporation (TFC) closed at $37.95 in the latest trading session, marking a +0.16% move from the prior day. This move outpaced the S&P 500's daily gain of 0.11%. Elsewhere, the Dow lost 0.11%, while the tech-heavy Nasdaq added 0.23%.

Shares of the company witnessed a gain of 2.21% over the previous month, trailing the performance of the Finance sector with its gain of 2.37% and outperforming the S&P 500's gain of 1.5%.

Investors will be eagerly watching for the performance of Truist Financial Corporation in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on April 22, 2024. The company is expected to report EPS of $0.78, down 28.44% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $5.65 billion, indicating a 7.48% decrease compared to the same quarter of the previous year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.39 per share and a revenue of $21.78 billion, indicating changes of -5.57% and -6.9%, respectively, from the former year.

It is also important to note the recent changes to analyst estimates for Truist Financial Corporation. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Currently, Truist Financial Corporation is carrying a Zacks Rank of #3 (Hold).

Looking at its valuation, Truist Financial Corporation is holding a Forward P/E ratio of 11.19. This expresses no noticeable deviation compared to the average Forward P/E of 11.19 of its industry.

Meanwhile, TFC's PEG ratio is currently 1.6. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. By the end of yesterday's trading, the Banks - Major Regional industry had an average PEG ratio of 1.66.

The Banks - Major Regional industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 96, finds itself in the top 39% echelons of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. 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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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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