Truist Financial Corporation (TFC), with a market cap of $52.7 billion, is a leading financial services company based in Charlotte, North Carolina. It offers various banking, trust, and insurance services, primarily in the Southeastern and Mid-Atlantic United States.
Shares of Truist have significantly outperformed the broader market over the past 52 weeks. TFC has gained 45% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 26.2%. However, in 2024, shares of TFC are up 7.2%, compared to SPX's 9.5% gains on a YTD basis.
Zooming in further, TFC also outpaced the S&P 500 Financials Sector SPDR's (XLF) 31.6% gains over the past 52 weeks. However, the exchange-traded fund’s 11.6% YTD gains outshine Truist’s single-digit returns over the same period.
Truist's shares rose nearly 1.9% on April 22 after the company revealed its Q1 earnings results. Despite grappling with muted loan demand due to a higher interest-rate environment and experiencing a revenue dip, Truist’s Q1 results were well-received by investors as the company beat Q1 earnings expectations on the bottom line and experienced a surge in its non-interest income.
For the current fiscal year, ending in December, analysts expect TFC’s EPS to decline by 6.1% to $3.37 on a diluted basis. The company’s earnings surprise history is mixed. It beat the consensus estimate in two of the last four quarters while missing the forecast on two other occasions.
The consensus view on TFC has been bullish overall. Among the 21 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on 10 “Strong Buy” ratings, three “Moderate Buys,” and eight “Holds.”
This configuration is slightly more bullish than three months ago, with eight analysts suggesting a "Strong Buy" rating.
On April 5, UBS analyst Erika Najarian reaffirmed a “Buy” rating on TFC and assigned her Street-high $49 price target, which implies a potential upside of around 23.8% from the current price levels.
The mean price target of $43.12 represents a premium of just 9% to TFC's current levels.
On the date of publication, Anushka Mukherjee 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.
