U.S. Bancorp’s Mixed Performance: A Closer Look at Recent Earnings and Analyst Ratings
U.S. Bancorp (USB) is a financial services holding company based in Minneapolis, Minnesota. It provides a range of financial products to individuals, businesses, and government entities across the U.S. With a market capitalization of $74.3 billion, it operates over 2,000 branches in 26 states.
Year-to-Date Performance Compared to the Market
Over the past year, U.S. Bancorp has slightly outperformed the broader market, though its performance dipped in 2024. So far in 2024, USB shares have climbed 10% year-to-date and increased 34.2% over the past 52 weeks. In contrast, the S&P 500 Index ($SPX) reported gains of 21.2% this year and 32.7% over the last year.
Struggles Against Regional Banks
When focusing on regional banks, U.S. Bancorp has lagged behind the iShares U.S. Regional Banks ETF (IAT), which has risen by 18.1% in 2024 and an impressive 42% over the past year.
Mixed Earnings Report
Despite a decline in revenues, U.S. Bancorp shares rose 4.7% following the release of its third-quarter earnings on October 16. The company reported a 2.4% year-over-year fall in total net revenues, totaling $6.9 billion, attributed to drops in both interest and non-interest income. The firm, however, demonstrated effective cost control, resulting in a 7.2% reduction in non-interest expenses to $4.2 billion, which contributed to a noteworthy 13.4% increase in net income attributable to shareholders, reaching $1.6 billion. Additionally, its adjusted earnings per share (EPS) of $1.03 exceeded Wall Street’s expectations by 3%, enhancing investor sentiment.
Outlook for Analysts and Earnings Predictions
Looking ahead to its current fiscal year, which ends in December, analysts predict an 8.8% decrease in adjusted EPS, projecting it to be $3.93. U.S. Bancorp has a strong track record of meeting earnings estimates, having either met or surpassed Wall Street’s expectations in the last four quarters.
Current Analyst Ratings on U.S. Bancorp Stock
The consensus rating for USB stock is “Moderate Buy.” Out of 22 analysts, seven recommend a “Strong Buy,” one suggests a “Moderate Buy,” and 14 propose a “Hold.” This recommendation set is slightly less optimistic than a month ago, when eight analysts were rating it as a “Strong Buy.”
Analyst Perspectives on Price Targets
On October 30, Evercore ISI Group analyst Vijay Kumar maintained an “In-Line” rating while increasing the price target for USB to $54. The average price target stands at $53.02, suggesting an 11.4% premium to current trading levels. The highest target among analysts, set at $60, implies potential growth of 26%.
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On the date of publication, Aditya Sarawgi 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.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
