From Nasdaq:

U.S. Bancorp’s stock has only risen 1% YTD compared to the S&P500’s 25% increase. With shares trading at $44, 6% above its $41 valuation, USB stock has underperformed the S&P in 2021, 2022, and 2023. The bank’s Q3 2023 earnings surpassed estimates, reporting total revenues of $7 billion, although adjusted net income decreased 18% to $1.4 billion.

The bank’s total revenues increased 19% y-o-y to $21.4 billion in the first 9 months of FY 2023. NII increased 27% y-o-y, contributing 63% to the top line. Despite the positive revenue growth, the adjusted net income decreased 8% y-o-y to $4.3 billion. It’s expected that U.S. Bancorp’s revenues will reach $28.5 billion in FY2023, with an annual EPS around $4.44.

The reinvested value portfolio has outperformed the S&P 500 with annual returns of 40% since 2016. This suggests that investing in the high-quality portfolio is more favorable than the USB stock, which has performed negatively for the past three years. The future still seems uncertain for the bank with the current macroeconomic environment.



Read more: Trailing The Broader Index By 24%, Is U.S. Bancorp Stock Ready To Rebound?