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Pittsburgh, Pennsylvania-based The PNC Financial Services Group, Inc. (PNC) operates as a diversified financial services company. With a market cap of $82.8 billion, the company provides regional banking, wholesale banking, and asset management services nationally and in its primary regional markets.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and PNC fits right into that category with its market cap exceeding this threshold, reflecting its substantial size, influence, and dominance in the regional banks industry. PNC’s focus on commercial banking through new markets and digital channels to improve customer relationships and banking experiences allows it to benefit from commercial financial services' complexities and offer a reliable and affordable funding basis.
Despite its notable strength, PNC slipped 5.4% from its 52-week high of $216.26, achieved on Nov. 29. Over the past three months, PNC stock gained 12%, underperforming the Nasdaq Composite’s ($NASX)16.9% gains during the same time frame.
In the longer term, shares of PNC rose 32.1% on a YTD basis and climbed 45.4% over the past 52 weeks, outperforming NASX’s YTD gains of 31.5% and 37% returns over the last year.
To confirm the bullish trend, PNC has traded above its 50-day moving average since early July, with slight fluctuations. The stock has been trading above its 200-day moving average over the past year.
PNC has exceeded expectations by increasing fee income and loan balances. Through partnerships with GTreasury and Plaid, the bank is streamlining operations and enhancing customer access to financial data. With a $500 million investment in new branches and renovations, and plans for a total of $1.5 billion by 2028, PNC is expanding its physical presence. The recent Federal Reserve rate cut is anticipated to drive growth in PNC's net interest income.
On Oct. 15, PNC shares closed up more than 2% after reporting its Q3 results. The company’s total revenues stood at $5.4 billion, up 3.8% year over year. Its EPS was $3.49, surpassing analyst estimates of $3.29.
In the competitive arena of regional banks, M&T Bank Corporation (MTB) has taken the lead over PNC, showing resilience with a 50.8% uptick on a YTD basis and solid 55.9% gains over the past 52 weeks.
Wall Street analysts are moderately bullish on PNC’s prospects. The stock has a consensus “Moderate Buy” rating from the 21 analysts covering it, and the mean price target of $211.13 suggests a potential upside of 3.2% from current price levels.
