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Truist Financial (TFC) has drawn attention after recent share price moves, with the stock showing a 1.5% decline over the past day and a 0.8% decline over the past week.
Over the past month, the stock shows a 2.3% decline, while the past 3 months reflect a 12.2% total return. This is set against full-year and multiyear total returns that remain in positive territory.
See our latest analysis for Truist Financial.
At a share price of US$49.57, Truist Financial’s short term performance has cooled after recent gains, with a 90 day share price return of 12.17% compared with a 1 year total shareholder return of 10.68%. This suggests earlier momentum is fading rather than accelerating.
If this banking move has you reassessing your watchlist, it could be a good moment to broaden your search and check out fast growing stocks with high insider ownership.
With Truist trading at US$49.57 and sitting at an estimated 23% discount to one intrinsic value estimate, investors may ask whether this bank is still undervalued or if the market is already accounting for future growth.
With Truist Financial last closing at $49.57 against a narrative fair value of about $55.11, the most followed storyline sees some value still on the table.
Ongoing technology investments, such as launching innovative payment capabilities and fully integrating legacy and new digital lending platforms, are expected to further improve operating efficiency and operating leverage, leading to structurally lower cost to income ratios and higher earnings over time.
Curious what kind of revenue path and earnings profile are baked into that fair value, and how much depends on stronger margins rather than faster top line growth? The full narrative lays out those assumptions in detail, including how capital returns fit into the picture and what type of valuation multiple ties it all together.
Result: Fair Value of $55.11 (UNDERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts.
However, that story can change quickly if credit losses rise on Truist’s commercial real estate book or if higher branch and technology spending continues to put pressure on costs.
Find out about the key risks to this Truist Financial narrative.
If you see the numbers differently or prefer to stress test the assumptions yourself, you can create a new Truist view in minutes, starting with Do it your way.
A good starting point is our analysis highlighting 4 key rewards investors are optimistic about regarding Truist Financial.
Truist might be on your radar, but you do not want to stop there when there are plenty of other stocks worth a closer look right now.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include TFC.
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