Headquartered in Minneapolis, U.S. Bancorp (USB) is the parent company of U.S. Bank. With a market cap of $63.2 billion, it provides banking and investment services primarily in the Midwest and West regions of the U.S. The company also offers asset management and fiduciary services for individuals, estates, foundations, business corporations, and charitable organizations.
Shares of U.S. Bancorp have outshined the broader market over the past year. While USB has surged 32.3% over this time frame, the broader S&P 500 Index ($SPX) is up 28.9%. However, in 2024, the stock tumbled 6.3%, while SPX rallied 11.2% on a YTD basis.
Zooming in further, USB has also outperformed the IShares U.S. Regional Banks ETF (IAT) over the past year. The exchange-traded fund has gained 26.9%, lower than USB’s return for the period.
Shares of USB rose over the past year due to a rebounding economy and consistently high interest rates. However, the stock tumbled 3.6% following its Q1 earnings results on April 17, in which it reported a 6.4% decline in revenue to $6.72 billion, missing estimates. The bank also increased its provision for credit losses and cut its guidance.
For the current fiscal year, ending in December, analysts expect USB’s EPS to fall 10.9% year over year to $3.84. Moreover, the company’s earnings surprise history is mixed. It beat or met the consensus estimate in three of the last four quarters while missing one other occasion.
U.S. Bancorp stock has a consensus “Moderate Buy” rating overall. Out of 23 analysts covering the stock, nine advise a "Strong Buy," one suggests a "Moderate Buy," and 13 recommend a "Hold."
This configuration is slightly more bullish than three months before, with eight analysts advising a "Strong Buy."
Analysts at JPMorgan Chase & Co. (JPM) recently lowered U.S. Bancorp's price target from $45 to $43.50 while maintaining an "Overweight" rating.
The mean price target of $47.38 suggests a 16.9% premium to USB from current levels. The Street-high target of $58 represents an upside potential of 43.1%.
On the date of publication, Kritika Sarmah 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.
