Is Truist Financial stock a buy as the regional bank beats Q3 expectations?


Shares of Truist Financial Corp (NYSE: TFC) jumped nearly 1% on Friday after its latest quarterly results were announced. The company reported strong third quarter revenue and earnings ahead of the market opening, beating analysts’ expectations.

Truist posted non-GAAP FQ3 earnings per share of $ 1.42, beating the average analyst expectations of $ 1.20. Additionally, the company’s GAAP EPS of $ 1.20 exceeded Street’s estimate of $ 1.09, while quarterly revenue of $ 5.63 billion was $ 100 million higher. dollars estimated despite marginal growth of 0.5% year-on-year.

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Shares of Truist Financial have risen almost 30% this year and over 45% in the past 12 months.

Is it time to buy TFC shares?

From an investment perspective, Truist Financial stock is trading at an attractive 12-month P / E of 15.98 and an even better forward P / E of 12.45. Therefore, value investors might find stock to be an attractive option for their portfolios.

However, analysts expect the Charlotte, NC-based bank’s earnings per share to decline by more than 17% this year, before falling further 4.62% next year. Therefore, growth investors could opt for alternatives in the market.

Nonetheless, TFC’s exciting dividend yield of 3.14% may attract the attention of dividend investors.

Source – TradingView

Is a downturn imminent?

Technically, shares of Truist Financial appear to be trading within an ascending channel formation in the intraday chart. As a result, the stock price moved closer to the 14-day RSI overbought conditions, creating an opportunity for a short-term pullback.

Therefore, investors could target potential withdrawals at around $ 58.82, or less at $ 56.92, while $ 62.58 is a crucial support area.

It might be time to short sell TFC shares

In summary, while Truist Financial shares are still trading at lucrative valuation multiples after the strong quarterly performance, its growth prospects are disappointing.

TFC stock is up more than 13% since September 21, pushing the stock price closer to overbought conditions. Therefore, the stock looks poised for a short-term pullback before the rally continues.

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