- USB is selling at less than 12 times this year’s projected earnings and under 10 times 2012’s consensus EPS.
- It has consistently beat earnings estimates over the last four quarters and consensus estimates for 2011, have been raised over the last ninety days.
- It has an A+ rated balance sheet and yields two percent.
- It is in the bottom half of its five year valuation range based on P/E, P/S, P/B and P/CF.
- USB had deposit growth of 7% year over year and loan growth was 4% over the same time period as of last quarterly report
- USB’s revenue is improving and should average more than 6% for both 2011, and 2012.
- USB’s credit quality is high relative to peers and declines to loan loss provisions should be a major driver of earnings both in 2011, and 2012.
- US Bancorp is a core holding of Warren Buffett and more than 30 major hedge funds.
- It is trading right at a very strong short term technical level (See Chart)
(Click to expand).
10. At under $25 a share, USB is priced significantly under analysts’ price targets. S&P has a price target of $29, Credit Suisse is at $31, Jefferies is also at $29 on USB.
Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in USB over the next 72 hours.