/Truist%20Financial%20Corporation%20%20sign-%20by%20Brett%20Hondow%20via%20Shutterstock.jpg)
Truist Financial Corporation (TFC), headquartered in Charlotte, North Carolina, is a financial services company that provides banking and trust services in the Southeastern and Mid-Atlantic U.S. Valued at $48.93 billion by market cap, the company offers a wide range of products and services through wholesale and consumer businesses, including consumer and small business banking, commercial banking, corporate and investment banking, wealth management, payments, and specialized lending businesses.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and TFC fits perfectly into that category, signifying its substantial size, stability, and dominance in its industry. TFC is a top-10 commercial bank with total assets of $535 billion as of March 31, 2024.
The regional bank has fallen 9.7% from its 52-week high of $40.51, which it hit on May 17. Shares of TFC are down 0.5% over the past three months, outperforming the S&P Regional Banking ETF SPDR’s (KRE) 3.9% losses over the same time frame.
Longer term, TFC shares rose 16.8% over the past year, but in 2024, the stock is down 0.8%. By contrast, the KRE is down 10.5% on a YTD basis but up 11.4% over the past 52 weeks.
The stock has been trading below its 50-day moving average since late May but above its 200-day moving average since late November 2023.
On May 29, TFC shares fell more than 2% after Citigroup downgraded Bank OZK (OZK) to Sell from Buy with a price target of $37, citing loan worries.
On Apr. 22, TFC shares closed up more than 3% after the company reported its Q1 results. Its adjusted EPS of $0.90 surpassed the consensus estimates of $0.81. Since its Q1 results were reported, the stock has been on a downtrend.
Rival Bank of America Corporation (BAC) has outperformed TFC with 38.2% gains in the past 52 weeks and an 18.5% increase on a YTD basis.
With its recent outperformance compared to other regional banking stocks, analysts remain optimistic about TFC’s prospects. The stock has a consensus rating of “Moderate Buy” from the 21 analysts covering it, and the mean price target of $43.52 is a 19% premium to current levels.
On the date of publication, Dipanjan Banchur 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.
