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U.S. Bancorp (USB) is one of the largest financial services holding companies in the United States, headquartered in Minneapolis, Minnesota. It is the parent company of U.S. Bank, the fifth-largest commercial bank in the nation by assets. With a market cap of $73.1 billion, it offers a wide range of financial products and services to individual, business, and institutional clients, including retail banking, commercial banking, wealth management, investment services, and payment processing.
Shares of USB have trailed the broader market over the past year. The stock has soared 16.2% over the past 52 weeks and is down marginally on a YTD basis. In comparison, the S&P 500 Index ($SPX) has returned 21.8% over the past year and is up 2.7% in 2025.
Narrowing the focus, USB has also underperformed the iShares U.S. Regional Banks ETF’s (IAT) surge of 31.1% over the past year and a 4.7% rally in 2025.
U.S. Bancorp reported its fourth-quarter 2024 earnings on Jan. 16, with adjusted earnings of $1.07 per share, slightly exceeding analyst expectations of $1.05. Total revenue reached $7 billion, a 3.7% increase year-over-year, driven by an 8.1% rise in non-interest income, supported by higher trust and investment management fees and commercial products revenue. Despite the solid performance, U.S. Bancorp's stock fell 5.6% after the earnings release.
For the current fiscal year, ending in December 2025, analysts expect USB’s adjusted EPS to rise 9.8% year over year to $4.37. The company has a robust earnings surprise history and has surpassed Wall Street’s earnings estimates in each of the past four quarters.
USB stock has a consensus “Moderate Buy” rating overall. Out of the 23 analysts covering the stock, ten recommend a “Strong Buy,” two advise a “Moderate Buy,” and 11 suggest a “Hold” rating.
This configuration is slightly more bullish than a month ago when nine analysts recommended a “Strong Buy” rating.
On Jan. 18, Morgan Stanley (MS) analyst Betsy Graseck lowered U.S. Bancorp's price target to $59 from $60 while maintaining an “Overweight” rating. Despite management's optimism post-investor day, the 2025 revenue growth guidance of about 4% appears conservative. Graseck views the stock as "oversold" but reduced the firm’s 2025 EPS estimate by 5.3% to $4.49 and the 2026 EPS estimate by 1.6% to $4.92.
The mean price target of $57.41 represents a premium of 21% to current price levels. Meanwhile, the Street-high target of $65 suggests a potential upside of 37%.
