The company has announced plans to expand its presence in several key markets, including Texas and California, through acquisitions and organic growth. Truist Financial Corporation has also invested in its digital capabilities, which has allowed the company to provide a range of digital banking services to its clients. The company’s digital banking platform, Truist Digital, offers a range of features, including mobile banking, online banking, and digital payments. In addition, Truist Financial Corporation has announced plans to launch a new digital bank, Truist Bank, which will offer clients a range of innovative financial solutions. Truist Financial Corporation operates in the highly competitive banking industry, subject to various regulatory and political issues.
- The future of that business remains a lingering question for investors, Siefers said.
- It reflects how much an investor will earn aside from any capital gains in the stock.
- In addition to commercial banking, retail banking, and investment banking operations, the company operates several nonbank segments, the primary one being its insurance brokerage business.
- 18 Wall Street analysts have issued 1 year price objectives for Truist Financial’s shares.
- ENPH stock was initially down in early morning trading alongside this downgrade.
In conclusion, the price-to-earnings ratio is a useful metric for analyzing a company’s market performance, but it has its limitations. While a lower P/E can indicate that a company is undervalued, it can also suggest that shareholders do not expect future growth. Additionally, the P/E ratio should not be used in isolation, as other factors such as industry trends and business cycles can also impact a company’s stock price. Therefore, investors should use the P/E ratio in conjunction with other financial metrics and qualitative analysis to make informed investment decisions. The P/E ratio measures the current share price to the company’s EPS.
The cost-cutting initiative, which equates to an annual spending reduction of about 5%, is aimed at helping Truist keep expense growth to no more than 1% next year. That would be a steep drop-off from the estimated 7% increase in expenses that the company has forecast for all of 2023. Truist Financial, which has been facing criticism from Wall Street over its rising https://1investing.in/ expenses, rolled out a plan Monday to cut costs by an estimated $750 million over the next 12 to 18 months. Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services. The industry with the best average Zacks Rank would be considered the top industry (1 out of 265), which would place it in the top 1% of Zacks Ranked Industries.
Truist Financial saw a decrease in short interest in the month of August. As of August 31st, there was short interest totaling 15,100,000 shares, a decrease of 26.1% from the August 15th total of 20,420,000 shares. Based on an average daily volume of 10,450,000 shares, the days-to-cover ratio is currently 1.4 days. Truist Financial Corporation may face challenges maintaining its strong financial performance during economic downturns or other external factors.
“At minimum, they’ve got great flexibility there, but they’re not doing anything with it now.” He said the company continues to “evaluate strategic options” for the insurance segment. The largest portion of the estimated $750 million in savings — about $300 million — will be realized through job cuts. “We are pleased to see the new expense initiatives,” Christopher Marinac of Janney Montgomery Scott wrote in a research note, adding that the plan announced Monday could be a short-term catalyst for the stock. “The hope is that management may be trying to under-promise,” Mayo said in a research note Monday. In a note, Terry McEvoy of Stephens Research said that he questions if “the 2024 outlook will be good enough.”
Dow Jones Industrial Average, S&P 500, Nasdaq, and Morningstar Index (Market Barometer) quotes are real-time. This site is protected by reCAPTCHA and the Google
Terms of Service apply. We’d like to share more about how we work and what drives our day-to-day business.
Morningstar analysts hand-select direct competitors or comparable companies to
provide context on the strength and durability of TFC’s
competitive advantage. The future of that business remains a lingering question for investors, Siefers said. A Truist spokesperson declined to say how many jobs will be eliminated. But Rogers said that some of the affected positions will be “support” roles in areas such as marketing, finance and management. The North Carolina-based bank’s presentation at the Barclays Global Financial Services Conference was hotly anticipated for weeks.
Truist Financial Corporation faces risks and challenges that may impact its future performance. One of the company’s most significant risks is the potential for increased competition from digital banks and fintech companies. These companies have rapidly gained market share by offering innovative financial solutions and leveraging technology to improve customer experience. Truist Financial Corporation has responded to this challenge by investing in its digital capabilities and launching new digital products and services. 18 Wall Street analysts have issued 1 year price objectives for Truist Financial’s shares. On average, they predict the company’s stock price to reach $40.04 in the next year.
Truist Financial Corp (TFC)
Dividend yield shows how much a company pays its shareholders in dividends annually per dollar invested. It reflects how much an investor will earn aside from any capital gains in the stock. You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
- Truist Financial Corporation faces risks and challenges that may impact its future performance.
- Truist Financial Corporation has responded to this challenge by investing in its digital capabilities and launching new digital products and services.
- At the same time, they reduced revenue guidance for the second time in seven weeks and suggested that positive operating leverage, a key measure of profitability, might be out of reach before 2025.
- The idea is that more recent information is, generally speaking, more accurate and can be a better predictor of the future, which can give investors an advantage in earnings season.
Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. The Zacks Industry Rank assigns a rating to each of the 265 X (Expanded) Industries based on their average Zacks Rank. One share of TFC stock can currently be purchased for approximately $28.62. Sign-up to receive the latest news and ratings for Truist Financial and its competitors with MarketBeat’s FREE daily newsletter. MarketRank is calculated as an average of available category scores, with extra weight given to analysis and valuation.
Is It Time to Sell TFC? Shares are down today.
The company’s strong balance sheet and conservative approach to risk management should help mitigate these risks. However, there is always the potential for unexpected events to impact the company’s financial performance. That downgrade has Truist analysts dropping shares of ENPH stock from a “buy” rating to a “hold” rating.
However, it’s well below the analyst consensus price prediction of $236.55 per share. Compared to the aggregate P/E ratio of the 8.16 in the Banks industry, Truist Finl Inc. has a lower P/E ratio of 6.93. Shareholders might be inclined to think that the stock might perform worse than it’s industry peers. The spending reduction will involve “significant” job cuts between now and the first quarter of 2024, CEO Bill Rogers said at an industry conference. He also promised a reduction in the number of management layers, the consolidation of certain business lines and cuts in technology spending.
How big is Truist Financial Corp?
Truist Financial Corporation has also identified opportunities to grow its wealth management business, focusing on serving high-net-worth clients. Truist Financial Corporation has mixed financial performance, with stagnant revenue growth over the past few years. The company reported a 4% increase on average in the past few years. Truist Financial Corporation maintains a healthy balance sheet, with assets sufficient to cover liabilities. The company’s debt-to-equity ratio indicates a moderate level of debt. Truist Financial Corporation trades at a price-to-earnings ratio lower than the industry average.
That includes the near-term risks that are facing the U.S. retail section of this business. Notably, Truist did not announce any additional changes to its massive and highly profitable insurance business. Back in February, Truist sold 20% of Truist Insurance Holdings to a private equity firm.
While the turmoil has subsided in recent months, investors have remained cautious. “We aren’t convinced it will be enough for investors …. were hoping for more substantive cuts,” analysts at brokerage Raymond James wrote in a note. Truist added that along with tech optimization and organizational simplification, it will yield a combined $750 million in savings over 12 to 18 months. It also expects expense growth in 2024 to be significantly lower than 2023. The banking turmoil may have subsided, but there are still excellent bargains in the financial sector.
Reuters provides business, financial, national and international news to professionals via desktop terminals, the world’s media organizations, industry events and directly to consumers. Data are provided ‘as is’ for informational purposes only and are not intended for trading purposes. Data may be intentionally delayed pursuant to supplier requirements.
It is used by long-term investors to analyze the company’s current performance against it’s past earnings, historical data and aggregate market data for the industry or the indices, such as S&P 500. A higher P/E indicates that investors expect the company to perform better in the future, and the stock is probably overvalued, but not necessarily. It also could indicate that investors are willing to pay a higher share price currently, because they expect the company to perform better in the upcoming quarters. This leads investors to also remain optimistic about rising dividends in the future. Truist Financial Corporation has several growth opportunities that enable the company to expand its business and increase its market share.
Lynette Bell, President of Truist Foundation, Selected for 2023 Trailblazer Purpose Award
On Monday, Rogers tried to convey urgency in his message to investors. During the company’s second-quarter earnings call in July, Truist executives revised their full-year expense projections to 7%, the highest projected annual uptick in spending among large U.S. banks. At the same time, they reduced revenue guidance types of asset management for the second time in seven weeks and suggested that positive operating leverage, a key measure of profitability, might be out of reach before 2025. Reuters, the news and media division of Thomson Reuters, is the world’s largest multimedia news provider, reaching billions of people worldwide every day.
Since then, TFC stock has decreased by 33.5% and is now trading at $28.62. Compare
TFC’s historical performance
against its industry peers and the overall market. TFC’s beta can be found in Trading Information at the top of this page. A stock’s beta measures how closely tied its price movements have been to the performance of the overall market.
This puts Kelly S. King in the top 30% of approval ratings compared to other CEOs of publicly-traded companies. The company is scheduled to release its next quarterly earnings announcement on Thursday, October 19th 2023. Truist Financial’s stock was trading at $43.03 at the start of the year.