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Truist Financial Corporation (TFC) is a significant player in the financial services industry, formed through the merger of BB&T and SunTrust Banks. Headquartered in Charlotte, North Carolina, Truist has a market cap of $62.4 billion and is one of the largest financial institutions in the United States. The company offers millions of customers nationwide a wide range of services, including retail and commercial banking, wealth management, and insurance.
Shares of TFC have outperformed the broader market over the past year. The stock has gained 52.9% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 35.8%. In 2024 alone, TFC is up 27.3% compared to SPX’s 24.3% rise on a YTD basis.
Zooming in further, TFC has also outperformed the S&P Regional Banking ETF SPDR’s (KRE) 27.9% gain on a YTD basis.
Truist Financial is proving its strength in a shifting financial landscape, outpacing the broader market and peers. After selling off its insurance unit, Truist fortified its liquidity and capital ratios, streamlining operations and sharpening efficiency.
Despite an initial dip of 3.6% after its Q3 earnings report on Oct. 17, TFC stock quickly rebounded, rising 1.7% the next day. The company reported earnings of $0.97 per share - a solid 21.3% year-over-year boost - and revenue growth of 4.3% to $5.14 billion. With non-interest expenses down 4.3% and an efficiency ratio improved to 55.2%, Truist’s strategic moves and operational resilience are clearly paying off.
For the current fiscal year, ending in December, analysts expect Truist to report an EPS to grow 2.8% year over year to $3.69. The company’s earnings surprise history is mixed. It beat the consensus estimate in three of the past four quarters while missing the projections on another occasion.
Among the 21 analysts covering TFC stock, the consensus rating is a “Moderate Buy.” That’s based on eight “Strong Buy” ratings, three “Moderate Buys,” and one “Hold.”
This configuration has been almost consistent over the past three months.
On Nov. 4, Jason Goldberg from Barclays maintained a ‘Hold’ rating on Truist Financial with a price target of $47. However, Bank of America Corporation Securities analyst Ebrahim Poonawala maintained a ‘Buy’ rating.
Truist’s mean target price of $47.52 represents a premium of just 1.1% to current price levels. The Street-high target of $51 indicates a potential upside of 8.5% from current price 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.
