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Minneapolis, Minnesota-based U.S. Bancorp (USB) operates as a financial services holding company, providing various financial services to individuals, businesses, institutional, and governmental entities in the U.S. With a market cap of $74.3 billion, U.S. Bancorp operates over 2,000 branches in 26 states.
U.S. Bancorp has slightly outpaced the broader market over the past year but underperformed in 2024. USB stock is up 10% on a YTD basis and 34.2% over the past 52 weeks compared to the S&P 500 Index’s ($SPX) 21.2% gains in 2024 and 32.7% returns over the past 52 weeks.
Narrowing the focus, USB has underperformed the iShares U.S. Regional Banks ETF’s (IAT) surge of 18.1% in 2024 and 42% over the past year.
Despite reporting a drop in revenues, shares of U.S. Bancorp surged 4.7% after the release of its third-quarter earnings on Oct. 16. The company reported a 2.4% year-over-year drop in total net revenues to $6.9 billion, driven by the drop in both interest and non-interest income. However, the company showcased efficient cost management reporting a 7.2% decrease in non-interest expense to $4.2 billion, leading to a substantial 13.4% surge in net income attributable to shareholders, totaling $1.6 billion. Moreover, its adjusted EPS of $1.03 surpassed Wall Street’s earnings estimates by 3%, bolstering investor confidence.
For the current fiscal year, ending in December, analysts expect U.S. Bancorp to report an 8.8% year-over-year drop in adjusted EPS to $3.93. The company has a robust earnings surprise history. It has surpassed or matched Wall Street’s bottom-line estimates in each of the past four quarters.
USB stock has a consensus “Moderate Buy” rating overall. Out of the 22 analysts covering the stock, seven recommend a “Strong Buy,” one advises a “Moderate Buy,” and 14 suggest a “Hold” rating.
This configuration is slightly less bullish than a month ago when eight analysts recommended a “Strong Buy” rating.
On Oct. 30, Evercore ISI Group analyst Vijay Kumar maintained an “In-Line” rating while raising the price target to $54.
The mean price target of $53.02 represents a premium of 11.4% to current price levels. Meanwhile, the Street-high target of $60 suggests a potential upside of 26%.
On the date of publication, Aditya Sarawgi 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.
