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Valued at a market cap of $61.5 billion, Pennsylvania-based The PNC Financial Services Group, Inc. (PNC) operates as a diversified financial services company in the United States. The company offers retail banking, corporate and institutional banking, and asset management services through its extensive branch network and digital platforms.
Companies valued at $10 billion or more are generally classified as “large-cap” stocks and PNC fits this criterion perfectly, exceeding the mark. PNC is renowned for its extensive branch network spanning 27 states and the District of Columbia, its leadership in small business lending and credit card issuance, and its significant presence in asset management and treasury management services, contributing to its status as one of the largest banks in the United States.
Despite a recent dip of 4.8% from its 52-week high of $162.24, reached in March, PNC has shown resilience with a 3.3% surge in its share over the past three months, outperforming the broader US Regional Banks iShares ETF (IAT), which dropped almost 1.7% during the same period.
Longer term, PNC’s shares declined marginally on a YTD basis, slightly outpacing IAT's 4.5% loss. Furthermore, PNC's shares have soared 20.3% over the past 52 weeks, compared to IAT's 15.5% gains over the same time frame.
To validate its bullish trend, PNC has been trading above its 200-day moving average since November last year and also remained above its 50-day moving average during this period despite some fluctuations in the last few months.
PNC has relatively outperformed due to its strong earnings growth, strategic acquisitions, and effective cost management. However, the stock dropped 2% on Apr. 16 following its Q1 earnings results due to a 21% decline in profit, driven by weaker interest income as the bank faced higher costs for holding customer deposits amid a high interest rate environment. Plus, PNC's forecast for a decline in net interest income (NII) in Q2 added to investor concerns about the bank's profitability outlook.
Also, PNC has lagged behind its rival, Citigroup Inc. (C), which has seen more substantial gains. Citigroup's shares surged by 26.1% over the past 52 weeks and 18.2% on a YTD basis.
Given PNC’s volatile price action, analysts are cautiously optimistic with a consensus rating of "Moderate Buy" from 23 analysts. The mean price target of $167.26 suggests an 8.3% upside potential from current 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.
