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Valued at a market cap of $71.1 billion, The PNC Financial Services Group, Inc. (PNC) is a diversified financial services company. Headquartered in Pittsburgh, Pennsylvania, the company operates through three segments: Retail Banking; Corporate & Institutional Banking; and Asset Management Group.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and PNC definitely fits that description. The American bank engages in retail banking, including residential mortgages, corporate and institutional banking, and asset management, providing many of its products and services.
The financial services company declined 16.9% from its 52-week high of $216.26. In addition, shares of PNC dropped 13.3% in the last three months, underperforming the broader Dow Jones Industrials Average ($DOWI), which dipped 4.1% over the same time period.
Longer term, PNC is down 8% on a YTD basis, lagging behind DOWI’s marginal decline. However, shares of PNC have jumped nearly 18% over the past 52 weeks, outperforming the Dow Jones’ 9.6% rise in the same period.
PNC has been trading above its 50-day and 200-day moving averages since last year. But, the stock has fallen below its 50-day moving average since mid-December last year.
Despite PNC surpassing Q4 2024 results expectations with adjusted EPS of $3.77 and revenue of $5.6 billion, shares fell nearly 2% on Jan. 16. Total loans declined 1.5% sequentially to $316.5 billion, missing estimates of $318.8 billion, raising worries about weak loan growth. Also, credit quality showed signs of deterioration, with non-performing loans rising 6.7% year over year to $2.3 billion and net loan charge-offs increasing 25% to $250 million, fueling investor concerns.
In comparison, its rival Ames National Corporation (ATLO) has underperformed PNC over the past 52 weeks, with shares declining marginally. Although ATLO moved up 13.1% on a YTD basis, it outperformed PNC.
Despite PNC’s outperformance relative to the broader market over the past year, analysts are cautiously optimistic about its prospects. PNC has a consensus "Moderate Buy" rating from 22 analysts and is currently trading below the mean price target of $220.07.
