Shares of U.S. Bancorp closed at $33.93 Thursday, returning 7% during the first quarter, following a 21% return during 2012. The shares trade for 2.7 times tangible book value, according to Thomson Reuters Bank Insight, and for 10.3 times the consensus 2014 earnings estimate of $3.28, among analysts polled by Thomson Reuters. The consensus 2013 EPS estimate is $3.07.
The company on March 14 announced it would raise its quarterly dividend to 23 cents a share from 19.5 cents, and that it had received Federal Reserve approval for up to $2.25 billion in share repurchases through the first quarter of 2014. Based on Thursday's market close, the shares have dividend yield of 2.71%.
U.S. Bancorp will announce its first-quarter results on April 1. Analysts polled by Thomson Reuters expect the company to report earnings of 74 a share, declining from 75 cents in the fourth quarter, but increasing from 67 cents in the first quarter of 2012.
U.S. Bancorp's stock trades at the highest price-to-tangible-book multiple among the 24 components of the KBW Bank Index, although 14 of the index components trade at higher forward price-to-earnings multiples. The company's long-term earnings track record speaks for itself, with returns on average tangible common equity ranging from 14.18% to 23.09% over the past five years, according to Thomson Reuters Bank Insight. When considering that some of the other high performers posted negative returns on equity in 2009, USB's long-term performance is in a class by itself.Deutsche Bank analyst Matt O'Connor rates U.S. Bancorp a "buy" and estimates first-quarter EPS of 74 cents, in line with the consensus. O'Connor said in a report on March 22, he expects the company's noninterest income "to be down 1.7% un-annualized q/q in 1Q primarily due to lower mortgage banking revenue (we estimate -9%) and seasonally lower deposit service charges/credit and debit card revenues." USB data by YCharts
Interested in more on U.S. Bancorp? See TheStreet Ratings' report card for this stock.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV