/Truist%20Financial%20Corporation%20%20sign-%20by%20Brett%20Hondow%20via%20Shutterstock.jpg)
With a market cap of $52.9 billion, Truist Financial Corporation (TFC) is a financial services company that engages in banking and trust services. The Charlotte, North Carolina-based company operates through three segments: Consumer Banking and Wealth; Corporate and Commercial Banking; and Insurance Holdings.
Companies valued at $10 billion or more are generally classified as “large-cap” stocks, and Truist Financial fits this description perfectly. The American bank holding company offers a wide range of products and services through its wholesale and consumer businesses in the Southeastern and Mid-Atlantic United States.
However, the company dropped 17.7% from its 52-week high of $49.06. Over the last three months, TFC has dipped 11.4%, underperforming the broader Dow Jones Industrials Average's ($DOWI) 5.3% decline.
Longer term, Truist Financial is down 6.5% on a YTD basis, lagging behind DOWI's 2.5% decrease. However, shares of TFC have gained 15.8% over the past 52 weeks, outperforming the Dow Jones’ 6.6% rise over the same time frame.
Since the beginning of March, the stock has fallen below its 50-day and 200-day moving averages.
Shares of Truist Financial climbed 5.9% on Jan. 17 after the bank reported a stronger-than-expected Q4 2024 earnings release, with adjusted EPS of $0.91 and revenue of $5.1 billion. Investors reacted positively to the 12.3% year-over-year EPS growth and a solid 3.4% revenue increase, driven by higher noninterest income from investment banking and trading. The bank's strong CET1 ratio of 11.5% signaled solid capital strength, reassuring investors.
Additionally, management’s announcement of a $500 million share repurchase plan and its 2025 guidance, projecting 3% to 3.5% adjusted revenue growth.
Moreover, in comparison, rival U.S. Bancorp (USB) has lagged behind TFC. USB stock decreased marginally over the past 52 weeks and experienced a decline of 12.2% on a YTD basis.
Analysts are cautiously optimistic about TFC’s prospects, given its outperformance compared to broader markets over the past year. With a consensus “Moderate Buy” rating from 21 analysts, it is currently trading below the mean price target of $52.15.
