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With a market cap of $25.5 billion, Ohio-based Fifth Third Bancorp (FITB) is a diversified financial services company in the banking sector. The company operates through four main segments: Commercial Banking, Branch Banking, Consumer Lending, and Wealth & Asset Management.
Shares of Fifth Third Bancorp have significantly outperformed the broader market over the past 52 weeks. FITB has gained 48.1% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 26.3%. However, in 2024, shares of FITB are up 8.5%, lagging behind SPX's 11.2% gains on a YTD basis.
Zooming in further, FITB is also outpacing the US Regional Banks iShares ETF's (IAT) 26.9% gains over the past 52 weeks.
FITB has outperformed the broader markets over the past year primarily due to its robust growth prospects in high-growth regions like the Southeast, its solid balance sheet with low exposure to commercial real estate (CRE), successful digital transformation efforts, excellent customer service, and strategic fintech investments.
Moreover, the stock's recent 5.9% surge on April 19, following a stellar Q1 earnings report and optimistic Q2 guidance, underscores its stability in net interest income and anticipated growth in noninterest income.
For the current fiscal year, ending in December, analysts expect FITB's EPS to decline by 7.9% to $3.27. However, the company's earnings surprise history is promising. It beat the consensus estimates in each of the last four quarters.
Among the 23 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on 12 “Strong Buy” ratings, one “Moderate Buy,” and 10 “Holds.”
This configuration is slightly more bullish than a month before, with 11 analysts recommending a “Strong Buy.”
On May 1, JPMorgan Chase & Company (JPM) upgraded Fifth Third Bancorp to an “Overweight” from a “Neutral” rating and increased its price target to $39.50 due to higher interest rates and improved consumer spending. This target suggests a 6% potential upside from the current price levels.
The mean price target of $39.28 represents a premium of 5.5% to FITB's current levels. The Street-high price target of $44, adjusted by Goldman Sachs (GS) in April, implies a potential upside of 18.1% from the current price levels.
On the date of publication, Sohini Mondal 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.
