Truist Financial Stock: Is TFC Underperforming the Financial Services Sector?
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Charlotte, North Carolina-based Truist Financial Corporation (TFC) is a financial services company that provides banking and trust services in the Southeastern and Mid-Atlantic United States. With a market cap of $51.7 billion, the company operates through three segments: Consumer Banking and Wealth, Corporate and Commercial Banking, and Insurance Holdings.
Companies worth $10 billion or more are generally described as "large-cap stocks." TFC fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size and influence in the regional banks industry. TFC benefits from being the sixth-largest commercial bank in the United States and serving millions of customers.
Despite its strengths, the financial giant's stock dropped nearly 19.2% from its 52-week high of $49.06 achieved on Nov. 25. TFC’s stock has declined 8.1% in the past three months, compared to the Financial Select Sector SPDR Fund’s (XLF) marginal uptick over the same time frame.
Moreover, in the longer term, TFC has declined 8.6% on a YTD basis, whereas XLF surged 4.8%. Furthermore, shares of TFC rose 8.2% over the past 52 weeks, underperforming XLF's 22.6% rally over the same time frame.
TFC has been trading below its 200-day moving average since early March but has climbed above its 50-day moving average since mid-May.
On Apr. 17, shares of TFC closed down marginally after delivering its Q1 results. The company’s revenue increased 1.6% year-over-year to $4.9 billion, with tax-equivalent net interest income up 3.8%, reaching $3.6 billion, supported by lower interest expenses. Moreover, its adjusted earnings declined 3.3% from the year-ago quarter to $0.87 but surpassed the consensus estimates by 1.2%.
Its rival, Citizens Financial Group, Inc. (CFG), has declined 8% in 2025 but has surged 18.1% over the past year, outperforming the stock.
Among the 22 analysts covering the TFC stock, the consensus rating is a “Moderate Buy.” Its mean price target of $45.77 suggests a 15.5% upside potential from current price levels.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
