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U.S Bancorp shares extend losses amid bullish market

EditorPollock Mondal
Published 11/08/2023, 10:08 PM
© Pavlo Gonchar / SOPA Images/Sipa via Reuters Connect
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U.S Bancorp (NYSE:USB) faced a second consecutive day of stock price decline on Tuesday, with shares dropping 1.30% to $34.81, a stark contrast to the generally bullish market where indices like the S&P 500 and Dow Jones rose by +0.28% and +0.17% respectively.

The bank's stock now stands $15.14 lower than its 52-week high of $49.95 set on January 26th, reflecting a mixed performance when compared to competitors such as Bank of America, Great Southern Bancorp (NASDAQ:GSBC), and Wells Fargo, all of which also reported stock declines in recent times.

The trading volume for U.S Bancorp on Tuesday was just 7.9 million, falling short of its 50-day average by five million. This downturn in trading activity could potentially signal a decrease in investor interest in the bank's stock.

Despite the broader market performing well, the banking sector appears to be facing headwinds. The reasons for this divergence remain unclear, but it's evident that U.S Bancorp isn't alone in its struggle with falling share prices among its peers in the banking industry.

InvestingPro Insights

In light of the recent performance of U.S Bancorp (NYSE:USB), it's worth considering some key insights from InvestingPro. The bank has a notable record of high earnings quality, with free cash flow exceeding net income, as well as a trend of accelerating revenue growth. This is further supported by the fact that U.S Bancorp has raised its dividend for 12 consecutive years, a testament to its financial stability and commitment to shareholders. However, it's important to note that there has been a declining trend in earnings per share, and 15 analysts have revised their earnings downwards for the upcoming period.

In terms of real-time data, U.S Bancorp has a market capitalization of 54.23 billion USD and a P/E ratio of 10.39 as of Q3 2023. The revenue for the same period stands at 24.6 billion USD, showing an 8.5% growth. The bank also has an operating income margin of 34.39%.

For more in-depth analysis and additional InvestingPro Tips, consider exploring the InvestingPro platform. It offers a comprehensive range of metrics and expert insights to help you make informed investment decisions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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