Southeastern banking giant Truist (NYSE:TFC) has continued to lag many of its peers since my last update (and over the last year), as the market has been pretty impatient regarding the expected
Truist Building Toward Better Growth And Margins
Summary
- Truist's first quarter earnings were basically in line excluding a reserve release, but management continues to position the business for better long-term growth and margins.
- Truist's insurance operations remain an underappreciated contributor to growth, and this is likely to be a prime target for further M&A.
- The integration of SunTrust is taking longer, but Truist management is pursuing a deliberate "best of breed" strategy that should position the company for better long-term growth and margins.
- Few quality banks are still clear bargains, but I believe Truist can deliver a long-term annualized return in the high single-digits that is still superior to long-term averages.
Stephen Simpson is a freelance financial writer and investor.Spent close to 15 years on the Street (sell-side, buy-side, equities, bonds).
Analyst’s Disclosure:I am/we are long TFC. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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