J. Michael Jones
While the prospect of regulatory-driven tailwinds may have been a boon for the Wall Street banks, shares of Southeastern lender Truist Financial Corporation (NYSE:TFC) have clocked in a more muted performance since my opening
Truist Financial: Shares Look Cheap As Earnings Set To Push On (Rating Upgrade)
Summary
- Truist Financial Corporation has been a relatively soft performer since my opening piece last October, with earnings and its stock largely flat in that time.
- Loan growth and the bank's interest margin should support earnings growth in the coming quarters, aided by sound cost control and stable credit trends.
- Given its healthy capital cushion, Truist is returning roughly all of its net income via dividends and buybacks, mapping to a high-single-digit total yield.
- TFC stock trades for under 11x 2025 consensus EPS. Earnings growth should push on in the back half of the year, and alongside a near-5% dividend, this sets up the prospect of a double-digit return over the next 12 months.
I like to take a long term, buy-and-hold approach to investing, with a bias toward stocks that can sustainably post high quality earnings. Mostly found in the dividend and income section. Blog about various US/Canadian stocks at 'The Compound Investor', and predominantly UK names on 'The UK Income Investor'.
Analyst’s Disclosure:I/we have a beneficial long position in the shares of TFC either through stock ownership, options, or other derivatives. 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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