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Truist Bank is set to release its next earnings report, and investors are eager to see how the bank's financials will shape up. The bank's stock has been a consistent performer, with a history of steady growth.
One key metric to watch is the bank's revenue growth, which is expected to continue its upward trend. In the past, Truist Bank has reported a steady increase in revenue, with a notable jump in the last quarter.
Investors will also be keeping a close eye on the bank's investment growth, which has been a major driver of its success. With a strong track record of investing in high-growth areas, Truist Bank is well-positioned to continue delivering strong returns.
Earnings and Performance
Truist Financial achieved solid year-over-year growth in revenue in Q3, with gains in both net interest income and non-interest income.
Net interest income rose by 2.2%, bolstered by higher interest margins, while non-interest income saw a 3.1% uplift, primarily due to gains in investment banking and trading.
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Non-interest expenses fell by 5.4% from the second quarter, mostly due to a non-repeated $150 million charitable contribution in Q2 and reduced headcount and declining medical claims by personnel.
The bank's investment in technological infrastructure increased, but was offset by $500 million spent on share buybacks in the quarter, which highlighted pressures on expanding its loan portfolio.
Nonperforming assets increased by $52 million from the second quarter, but fell by $56 million on a year-over-year basis.
Average loans and average deposits both fell by 1.0%, signaling weaker demand, especially in commercial sectors.
The recent hurricanes in its core Southeast market led Truist to engage in community recovery efforts, which may influence short-term operational costs.
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Investment and Growth
Truist Bank's stock is expected to see significant growth in the next few years. Analysts forecast a revenue growth rate of 15.8% per year, which is faster than the US market's growth rate of 8.8%.
This growth is expected to be driven by Truist Bank's increasing profitability, with analysts predicting the company will become profitable over the next 3 years. This is considered faster growth than the savings rate of 2.6%.
Here's a breakdown of Truist Bank's revenue growth forecast:
Truist Bank's revenue growth is expected to be above average market growth, making it a promising investment opportunity.
Earnings and Revenue Growth
TFC is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.6%).
The company's earnings are expected to grow significantly, with forecasts showing a steady increase from $5,791 million in 2026 to $6,079 million in 2027.
TFC's revenue is forecast to grow at a rate of 15.8% per year, which is faster than the US market's growth rate of 8.8% per year.
The company's revenue has been steadily increasing over the past few years, with a high of $23,095 million in 2022.
Here's a breakdown of TFC's revenue growth over the past few years:
Note that the revenue growth has been steadily increasing over the past few years, with a significant jump in 2022.
The company's earnings are expected to become profitable over the next 3 years, which is considered above average market growth.
TFC's revenue growth is forecast to be slower than 20% per year, but still significantly faster than the US market's growth rate of 8.8% per year.
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Corp Hype to Price
The estimated after-hype price volatility for Truist Financial is 45.65 for downside and 49.79 for upside.
This means that the stock price may fluctuate significantly after a hype event. The after-hype price target odds are 47.72, indicating a moderate level of uncertainty.
The expected return on investment is 0.25, which suggests a relatively stable financial performance. Period volatility is 2.07, indicating a moderate level of risk.
Hype elasticity is 0.10, which means that the stock price is relatively sensitive to hype events. Related elasticity is 0.09, indicating a lower level of sensitivity to related events.
The latest traded price of Truist Financial is 47.62, and the expected after-news price is 47.72. This suggests a minimal potential return on the next major news event of 0.21.
Average after-hype volatility is 504.88, indicating a high level of price fluctuation after hype events.
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Financials and Dividends
Truist Financial's third-quarter earnings report showed a strong performance, with earnings per share (EPS) of $0.99, a 23.8% increase from the same quarter last year.
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The bank's total revenue grew to $5.14 billion, a 4.3% increase from Q3 2023, driven primarily by a rise in net interest income.
Net interest income rose to $3.66 billion, a 1.9% increase from Q3 2023.
However, the quarter saw a decrease in loan demand, with the average loans and leases balance falling to $305 billion, a 4.7% decrease from the same quarter last year.
Here's a comparison of Truist Financial's key metrics for Q3 2024 and Q3 2023:
The bank's non-interest expenses fell by 5.4% from the second quarter, but that change was mostly due to a non-repeated $150 million charitable contribution in Q2.
Stock Analysis and Prediction
Truist Financial's stock price is expected to return 0.25 over the next period, with a period volatility of 2.07. This suggests a moderate level of risk for investors.
The company's expected hype is currently in about 6 days, which could potentially impact the stock price.
A potential return on next major news is 0.21, indicating a relatively small impact from news events.
The average after-hype volatility is 504.88, which is a significant increase from the current volatility level.
Here's a summary of the stock's performance indicators:
The estimated after-hype price volatility for Truist Financial is between 45.65 and 49.79, with a target odds above 47.72.
Stock Analysis and Prediction
The latest stock analysis for Truist Financial is quite interesting. The expected return on this stock is 0.25, which is a relatively modest gain.
Truist Financial's period volatility is 2.07, indicating that the stock's price can fluctuate significantly over time. This is a crucial factor to consider when making investment decisions.
The hype elasticity of 0.10 suggests that the stock's price is not highly influenced by market sentiment. However, the related elasticity of 0.09 indicates that there is some correlation between the stock's price and the prices of related stocks.
Intriguing read: Truist Financial Reports Q3 2024 Earnings.
There are 6 events related to Truist Financial that occur every month, and 7 events related to other stocks that occur every month. This is a significant amount of news and activity that can impact the stock's price.
The expected hype for Truist Financial is about 6 days away, which could potentially lead to a significant price increase.
Here are the key statistics for Truist Financial's stock analysis:
The estimated after-hype price volatility for Truist Financial is quite high, ranging from 45.65 to 49.79. This suggests that the stock's price can fluctuate significantly after a major news event.
Analyst Sources
In this section, we'll take a closer look at the analyst sources that contribute to our stock analysis and prediction.
Our research is informed by 54 analysts who cover Truist Financial Corporation, providing valuable insights into the company's performance.
These analysts submit estimates of revenue or earnings, which are used as inputs to our report.
Their submissions are updated regularly throughout the day, ensuring that our analysis is based on the latest information available.
Here's a list of some of the analysts who contributed to our research, along with the institutions they represent:
About Predictive Indicators
Predictive indicators are crucial tools for stock analysis and prediction. They help us make informed decisions by providing valuable insights into a company's financial health and future prospects.
One key predictive indicator is the dividend yield, which measures the ratio of a company's annual dividend payment to its current stock price. For example, in 2022, the dividend yield for Truist Financial was 0.0523.
A company's dividend yield can give us a sense of its financial stability and ability to return value to shareholders. A higher dividend yield can indicate a more attractive investment opportunity.
Another important predictive indicator is the price-to-sales ratio, which compares a company's stock price to its revenue. In 2022, Truist Financial's price-to-sales ratio was 2.57.
A lower price-to-sales ratio can indicate a more undervalued stock, while a higher ratio can suggest a stock that's overvalued. It's essential to consider multiple indicators when making investment decisions.
Here are some key predictive indicators for Truist Financial:
By analyzing these indicators, we can gain a better understanding of Truist Financial's financial health and make more informed investment decisions.
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Frequently Asked Questions
Should I sell Truist stock now?
Based on analyst recommendations, selling Truist stock now may not be the best decision, as 50% of analysts strongly recommend buying it. However, it's essential to consider multiple factors before making a decision, including your individual financial goals and risk tolerance.
Sources
- https://www.fool.com/data-news/2024/10/17/truist-financial-posts-solid-q3-results/
- https://www.pymnts.com/earnings/2024/balance-sheet-optimization-expense-discipline-digital-growth-define-truist-quarter/
- https://simplywall.st/stocks/us/banks/nyse-tfc/truist-financial/future
- https://www.macroaxis.com/predict/TFC/Truist-Financial-Corp
- https://stocknews.com/news/tfc-san-ebkdy-kb-truist-financial-tfc-analyzing-signals-prior-to-earnings-call/
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