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USB shares rally, ending three-day slump

EditorRachael Rajan
Published 16/10/2023, 22:52
© Pavlo Gonchar / SOPA Images/Sipa via Reuters Connect
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Shares of U.S. Bancorp (NYSE:USB) ended a three-day losing streak on Monday, gaining 1.40% to close at $32.62, as the S&P 500 and Dow Jones indices also saw gains. This positive shift in USB's performance came amidst an overall upbeat market mood.

Despite the recent uptick, USB's shares are still $17.33 below their year-high reached earlier in 2023. When compared to other banking sector peers such as Bank of America Corp (NYSE:BAC)., Great Southern Bancorp (NASDAQ:GSBC) Inc., and Wells Fargo & Co., the performance of USB showed a mixed trend.

Adding to the day's positive momentum, USB's trading volume reached 11.4 million shares, surpassing its 50-day average. This higher trading volume suggests increased investor interest in the company.

InvestingPro data shows that USB has a market cap of $50.8B USD and a P/E ratio of 9.05. The company's revenue for LTM2023.Q2 stands at 24.05B USD, with a growth rate of 5.72%. The company also shows a promising dividend yield of 5.97% as of Y2023.D289.

In addition to these metrics, it's worth noting a couple of InvestingPro Tips. The company has high earnings quality, with free cash flow exceeding net income, and has raised its dividend for 12 consecutive years. These factors, combined with the fact that USB is a prominent player in the Banks industry, suggests a positive outlook for the company's financial health and stability.

For more in-depth information and additional investing tips, consider checking out the InvestingPro product that includes additional tips. There are 9 more insightful tips about USB available on InvestingPro.

Finally, it's important to note that analysts predict the company will be profitable this year, further reinforcing the positive sentiment towards USB's future performance. This is in line with the InvestingPro fair value of $46.08 USD, suggesting potential for growth in the company's share price.

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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