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U.S. Bancorp (USB), headquartered in Minneapolis, Minnesota, is a prominent financial services company providing a diverse range of banking, investment, mortgage, and payment services throughout the U.S. with a market cap of $70.27 billion. Competing with other major financial institutions like Wells Fargo & Company (WFC), U.S. Bancorp focuses on customer-centric innovation, operational efficiency, and a commitment to delivering exceptional financial services.
Companies valued at $10 billion or more are classified as "large-cap" stocks, and U.S. Bancorp is a prime example of this, highlighting its substantial scale, stability, and influence within the U.S. financial services sector.
USB shares are trading 5.4% below their 52-week high of $47.31, which they hit on Sep. 3. However, the stock has gained 16.4% over the past three months, outperforming the iShares U.S. Financial Services ETF’s (IYG) 7.5% gain over the same time frame.
In the longer term, USB is up 3.4% on a YTD basis, and the shares have gained 23.6% over the past 52 weeks. The IYG has gained 15.6% in 2024 and 28.4% over the past year.
To confirm the bullish price action, USB has been trading above its 50-day moving average since early August and its 200-day moving average since early July.
On Sep. 6, U.S. Bancorp expanded its product offerings by launching the U.S. Bank Smartly Visa Signature Card and U.S. Bank Smartly Savings, enhancing its suite of financial solutions to boost client rewards and savings. On Jul. 17, USB shares rose more than 4% after reporting a Q2 adjusted EPS of $0.98, beating the consensus estimate of $0.94.
Highlighting the contrast in performance, rival WFC has outperformed USB, with a 9.2% gain on a YTD basis.
Given USB's recent outperformance compared to the IYG, analysts are moderately optimistic about its prospects. The stock has a consensus rating of "Moderate Buy" from 22 analysts in coverage. The mean price target is $49.78, reflecting an 11.2% premium over current levels.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
