/U_S_%20Bancorp_%20logo%20on%20phone%20with%20money%20background-by%20Sergio%20Photone%20via%20Shutterstock.jpg)
Minneapolis, Minnesota-based U.S. Bancorp (USB) is a financial services holding company offering a range of financial services to people, businesses, institutional organizations, government agencies, and other financial institutions in the U.S. With a market cap of $80.4 billion, it operates over 2,000 branches in 26 states.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and USB fits right into that category with its market cap exceeding this threshold, reflecting its substantial size, influence, and dominance in the regional banks industry. U.S. Bancorp's wide array of services, such as payment services and wealth management, allows the bank to effectively meet the diverse needs of its customers.
Despite its notable strength, USB slipped 3.3% from its 52-week high of $53.98, achieved on Nov. 27. Over the past three months, USB stock gained 17.3%, outperforming the S&P 500 Index’s ($SPX) 12.6% gains during the same time frame.
In the longer term, shares of USB rose 20.6% on a YTD basis and climbed 33.5% over the past 52 weeks, underperforming SPX’s YTD gains of 27.7% and 33.9% returns over the last year.
To confirm the bullish trend, USB has traded above its 50-day and 200-day moving averages since early July, with slight fluctuations.
The decline in USB's performance can be attributed to a net loss on the sale of securities, decreased service charges, and lower other revenues caused by the impact of higher interest rates on deposit mix and pricing.
On Oct. 16, USB shares closed up more than 4% after reporting its Q3 results. The company’s total revenues stood at $6.9 billion, down 2.4% year over year. The company’s adjusted EPS was $1.03, surpassing analyst estimates of $1.
In the competitive arena of regional banks, The PNC Financial Services Group, Inc. (PNC) has taken the lead over USB, showing resilience with a 34.7% uptick on a YTD basis and solid 49.7% gains over the past 52 weeks.
Wall Street analysts are moderately bullish on USB’s prospects. The stock has a consensus “Moderately Buy” rating from the 22 analysts covering it, and the mean price target of $55.33 suggests a potential upside of 6% from current price levels.
