U.S. Bancorp of Minneapolis has seen its shares return 31% year-to-date, through Tuesday's close at $34.68. During 2011, the shares returned 2%, which was a strong showing, during a year in which the KBW Bank Index declined 25%. The shares trade for 2.9 times tangible book value, and for 11.4 times the consensus 2013 EPS estimate of $3.05. The consensus 2012 EPS estimate is $2.85. With a quarterly payout of 20 cents, the shares have a dividend yield of 2.31%. The company has earned Penala's label as "best in class," with an ROA of 1.59% for the 12-month period ended June 30, and an ROE of 22.01%, which was the strongest among the 24 components of the KBW Bank Index. U.S. Bancorp will report its third-quarter results on Oct. 17, with a consensus EPS estimate of 73 cents, increasing from 71 cents in the second quarter, and 64 cents during the third quarter of 2011. Penala downgraded U.S. Bancorp to a neutral rating from a "Buy" rating, while lowering her price target for the shares to $35 from $37, "as we believe that USB's above average valuations will come under pressure based on a declining
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