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Valued at $25.5 billion by market cap, Ohio-based Huntington Bancshares Incorporated (HBAN) stands tall as a regional bank holding company since 1866. Through The Huntington National Bank and its affiliates, the company delivers a full spectrum of banking, payments, wealth management, and risk management solutions to individuals, businesses, municipalities, and organizations. With 975 branches spanning 12 states and select services extending further afield, Huntington continues to be a trusted partner for financial needs across diverse communities.
Shares of this financial firm appear to have outperformed the broader market over the past year, delivering gains of roughly 60%, compared to the S&P 500 Index’s ($SPX) 30.5% annual return. In 2024, HBAN stock is up nearly 38.4%, surpassing the broader SPX’s return of 23% on a YTD basis.
Narrowing the focus, the financial stock has also outshined the First Trust Financials AlphaDEX Fund’s (FXO) 44.6% return over the past 52 weeks and has posted gains in 2024 that are almost in line with ETF’s 30.3% YTD growth.
The company revealed its Q3 earnings report on Oct. 17, which crushed Wall Street’s top and bottom-line estimates, yet these results failed to trigger excitement among investors, evident from its share remaining nearly flat post-announcement.
However, more recently, on Nov. 6, Huntington shares took more than 12% along with a few other financial heavyweights, fueled by a wave of optimism following Donald Trump's election and the potential for a Republican-led Congress. The rally reflected heightened enthusiasm for potential financial deregulation, with investors pouring into higher-risk financial plays amid hopes of a more lenient regulatory environment.
For the current fiscal year, ending in December, analysts expect HBAN’s EPS to decline 11% to $1.21. Nevertheless, the company’s earnings surprise history is quite impressive. It beat the consensus estimate in each of the last four quarters.
Among the 19 analysts covering HBAN stock, the consensus view is a “Moderate Buy.” That’s based on 10 “Strong Buy” ratings, one “Moderate Buy,” seven “Holds,” and one “Strong Sell” rating.
The mood on Wall Street is slightly less bullish compared to two months ago when 11 analysts suggested a “Strong Buy.”
On Nov. 11, RBC Capital adjusted the company’s price target to $20 from $17, which is also HBAN’s Street-high target, and also maintained an “outperform” rating on the stock. This newly raised target suggests an upside potential of around 14.2% from current levels. On the other hand, the mean price target of $17.46 represents a marginal potential upside to HBAN’s current price levels.
