Latest news with #ThePNCFinancialServicesGroup
Yahoo
10 hours ago
- Business
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Why The PNC Financial Services Group, Inc (PNC) is a Great Dividend Stock Right Now
All investors love getting big returns from their portfolio, whether it's through stocks, bonds, ETFs, or other types of securities. But for income investors, generating consistent cash flow from each of your liquid investments is your primary focus. Cash flow can come from bond interest, interest from other types of investments, and, of course, dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases. The PNC Financial Services Group, Inc (PNC) is headquartered in Pittsburgh, and is in the Finance sector. The stock has seen a price change of 0.07% since the start of the year. The company is paying out a dividend of $1.70 per share at the moment, with a dividend yield of 3.52% compared to the Financial - Investment Bank industry's yield of 1.02% and the S&P 500's yield of 1.49%. Looking at dividend growth, the company's current annualized dividend of $6.80 is up 7.9% from last year. Over the last 5 years, The PNC Financial Services Group, Inc has increased its dividend 3 times on a year-over-year basis for an average annual increase of 8.49%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. The PNC Financial Services Group's current payout ratio is 44%, meaning it paid out 44% of its trailing 12-month EPS as dividend. Earnings growth looks solid for PNC for this fiscal year. The Zacks Consensus Estimate for 2025 is $15.50 per share, representing a year-over-year earnings growth rate of 11.43%. Investors like dividends for many reasons; they greatly improve stock investing profits, decrease overall portfolio risk, and carry tax advantages, among others. But, not every company offers a quarterly payout. High-growth firms or tech start-ups, for example, rarely provide their shareholders a dividend, while larger, more established companies that have more secure profits are often seen as the best dividend options. During periods of rising interest rates, income investors must be mindful that high-yielding stocks tend to struggle. With that in mind, PNC is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of #3 (Hold). Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The PNC Financial Services Group, Inc (PNC) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Yahoo
5 days ago
- Business
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The PNC Financial Services Group (PNC) Down 0.7% Since Last Earnings Report: Can It Rebound?
A month has gone by since the last earnings report for The PNC Financial Services Group, Inc (PNC). Shares have lost about 0.7% in that time frame, underperforming the S&P 500. But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is The PNC Financial Services Group due for a breakout? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent catalysts for The PNC Financial Services Group, Inc before we dive into how investors and analysts have reacted as of late. PNC Financial Q2 Earnings Beat Estimates on NII & Loan Growth PNC Financial second-quarter 2025 adjusted earnings per share (EPS) of $3.85 surpassed the Zacks Consensus Estimate of $3.56. In the prior-year quarter, the company reported EPS of $3.39. Results were aided by a rise in NII and the loan balance. However, a decline in fee income and an increase in expenses, along with a rise in provision for credit losses, acted as spoilsports. Net income (GAAP basis) was $1.64 billion, which jumped 11.2% from the prior-year quarter. Revenues & Expenses Rise Y/Y Total quarterly revenues were $5.66 billion, up 4.6% year over year. The top line surpassed the Zacks Consensus Estimate by 0.7%. NII was $3.55 billion, which rose 7.7% from the year-ago quarter. The net interest margin (NIM) increased 20 basis points to 2.80%. Non-interest income slightly decreased year over year to $2.1 billion. The decrease was driven by lower residential and commercial mortgage income, along with a decline in other non-interest income. Non-interest expenses totaled $3.38 billion, which rose marginally from the year-ago figure. The efficiency ratio was 60% compared with 62% in the year-ago quarter. A fall in the efficiency ratio reflects increased profitability. Loan and Deposit Balance Rises As of June 30, 2025, total loans were $326.3 billion, which increased 2.3% on a sequential basis. Further, total deposits increased by nearly 1% from the end of the previous quarter to $426.7 billion. Credit Quality: Mixed Bag Non-performing loans fell 15.8% year over year to $2.1 billion. Further, net loan charge-offs were $198 million, which declined 24.4% year over year. The company reported a provision for credit losses of $254 million in the second quarter, which surged 8.1% from the year-earlier quarter. The allowance for credit losses decreased 1.3% to $5.3 billion. Capital Position & Profitability Ratios Improve As of June 30, 2025, the Basel III common equity tier 1 capital ratio was 10.5% compared with 10.2% as of June 30, 2024. Return on average assets and average common shareholders' equity were 1.17% and 12.20%, respectively, compared with 1.05% and 12.16% witnessed in the prior-year quarter. Capital Distribution Activity In the second quarter of 2025, PNC Financial returned $1 billion of capital to shareholders. This included $0.6 billion in common stock dividends and more than $0.3 billion in common share repurchases. Outlook Q3 2025 The company expects average loans to rise 1% from the second quarter's reported figure of $322.8 anticipates NII to rise 3% from the $3.6 billion reported in the second quarter of income is expected to rise 3-4% from the second-quarter 2025 reported figure of $1.9 anticipates total revenues to increase 2-3% from $5.7 billion in the second quarter of non-interest income is projected between $150 million and $200 million compared with the $212 million reported in the second quarter of non-interest expenses are expected to rise 2% from the $3.4 billion reported in the second quarter of charge-offs are estimated to be $2275-$300 million compared with the second-quarter 2025 reported figure of $198 million. 2025 Average loans are expected to rise 1% to $319.8 billion from that reported in is expected to rise 7% from the 2024 reported income (excluding visa gain and securities losses) is projected to rise 4-5% from the $8.1 billion reported in 2024. Management suggests revenues to rise 6% from the $21.6 billion reported in 2024. Adjusted non-interest expenses (excluding FDIC special assessment and PNC foundation contribution expenses) are forecast to rise 1% from the $13.52 billion reported in 2024. The effective tax rate is estimated to be 19%, whereas the company reported 17.8% in 2024. How Have Estimates Been Moving Since Then? Since the earnings release, investors have witnessed a upward trend in estimates revision. VGM Scores Currently, The PNC Financial Services Group has a poor Growth Score of F, however its Momentum Score is doing a lot better with a C. Following the exact same course, the stock was allocated a score of C on the value side, putting it in the middle 20% for value investors. Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in. Outlook Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, The PNC Financial Services Group has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The PNC Financial Services Group, Inc (PNC) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
31-07-2025
- Business
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Consumer spending heated up a bit last month – but so did inflation
US consumers continued to spend in June, powering the economy in the process, despite tariff-related price hikes becoming more present on store shelves and online. Consumer spending rose 0.3% from May, when spending was flat, according to Commerce Department data released Thursday. The report — which provides a comprehensive look on how prices are changing as well as how households' income, spending and savings are faring — showed that inflation picked up as well last month. The Personal Consumption Expenditures price index — the inflation gauge the Federal Reserve uses for its 2% target rate — rose 0.3% on a monthly basis, which lifted the annual rate to 2.6%, the highest since February. Tariffs are starting to leave a bigger mark on overall inflation; however, consumers, whose spending powers more than two-thirds of economic activity, are largely 'holding up OK,' Gus Faucher, chief economist of The PNC Financial Services Group, told CNN in an interview. 'I think we're seeing modest growth in consumer spending,' he said. 'The economy has definitely downshifted over the past year; we're seeing slower job growth, slower income growth and along with that is coming slower consumer spending growth.' 'You add on top of that, tariffs — both the price increases and the uncertainty that's created — and consumers have turned a bit more cautious,' he added. Tariffs leaving their mark Economists were expecting PCE to rise 0.3% from 0.2% in May and accelerate on an annual basis to 2.5% from the initially reported 2.3% increase (May's annual inflation rate was revised upward to 2.4% in Thursday's report). Excluding energy and food, which tend to be quite volatile, the 'core' PCE index showed price hikes picked up speed in June, rising 0.3% from May (the fastest gain in four months), and holding at an annual rate of 2.8% The PCE price index was expected to heat up slightly in part because of rising gas prices, which had been falling for much of the year, as well as pricier goods from businesses passing along tariff-related costs to consumers. That was indeed the case, according to Thursday's report: Energy prices shot up 0.9% after falling 1% the month before. Goods prices rose 0.4% (durable up 0.5%, non-durable goods up 0.4%), marking the highest monthly rate since January when prices bumped higher after holiday season discounts. 'Durable goods prices were up a half of a percent,' Faucher said. 'These things can bounce around form month to month, and I don't want to read too much into everything; but, certainly, that's suggestive of tariff costs being passed along to consumers, and I think we're going to see more of that over the next few months.' President Donald Trump's trade policies, which include widespread (but highly volatile) tariffs on imported goods from countries around the world, are starting to result in higher prices for consumers as well as elevated inflation rates. The tariffs are paid by the companies that import the goods, but then those price increases are often spread out through the supply chain and, oftentimes, passed onto consumers in some form. And while the higher tariffs aren't expected to trigger an inflationary surge like Americans saw in 2022, the price hikes won't be easy for everyone, Faucher said. 'It's going to be uncomfortable for consumers,' he said. 'I think that they're going to start to see it, and they're going to notice that their paychecks aren't going as far as they were.' Stock futures were relatively unchanged after the latest spending and inflation data. Dow futures were up 100 points, or 0.23%. S&P 500 futures rose 0.92% and Nasdaq 100 futures gained 1.33%. This story has been updated with additional developments and context. CNN's John Towfighi contributed to this report. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
09-07-2025
- Business
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The PNC Financial Services Group, Inc (PNC) Earnings Expected to Grow: Should You Buy?
Wall Street expects a year-over-year increase in earnings on higher revenues when The PNC Financial Services Group, Inc (PNC) reports results for the quarter ended June 2025. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates. The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 16. On the other hand, if they miss, the stock may move lower. While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise. This company is expected to post quarterly earnings of $3.56 per share in its upcoming report, which represents a year-over-year change of +7.9%. Revenues are expected to be $5.62 billion, up 3.9% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 0.81% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction). The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For The PNC Financial Services Group, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +0.15%. On the other hand, the stock currently carries a Zacks Rank of #3. So, this combination indicates that The PNC Financial Services Group will most likely beat the consensus EPS estimate. Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that The PNC Financial Services Group would post earnings of $3.4 per share when it actually produced earnings of $3.51, delivering a surprise of +3.24%. Over the last four quarters, the company has beaten consensus EPS estimates four times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. The PNC Financial Services Group appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The PNC Financial Services Group, Inc (PNC) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
05-04-2025
- Business
- Yahoo
Is The PNC Financial Services Group (PNC) the Best Regional Bank Dividend Stock to Buy?
We recently published a list of the 11 Best Regional Bank Dividend Stocks to Buy. In this article, we are going to take a look at where The PNC Financial Services Group, Inc. (NYSE:PNC) stands against other best regional bank dividend stocks. The year 2024 proved to be a strong one for major US banks, with the six largest institutions collectively reporting a 20% increase in net profits compared to the previous year, according to FactSet data. This performance ranks among the most successful years for the US banking sector in the past two decades. The industry rebounded significantly following the widely publicized bank failures of 2023, which saw several prominent lenders collapse. Based on Financial Times estimates, trading revenue for the year climbed to $123 billion, reflecting a 10% rise from 2023, while investment banking fees jumped 34% to $36 billion. This surge was driven by a recovery in dealmaking activity later in the year, as more companies moved forward with equity and debt offerings. Regional banks have been gaining momentum within the banking sector following the regional banking turmoil of spring 2023, which prompted lenders to prioritize liquidity, often at any cost. While their performance was strong relative to the Russell small cap index, it still fell short of the broader market's full-year return of over 25.02%. Despite the gains in 2024, bank stocks have lagged the broader market over multiple years, creating an attractive investment opportunity at historically low valuations. By the end of the year, the price-to-earnings (P/E) multiples of the Regional Banking Index and Community Bank Index were nearly half that of the broader market's, highlighting their relative discount. Moreover, in the fourth quarter of 2024, approximately two-thirds of US regional banks reported higher earnings compared to the previous year. According to S&P Global Market Intelligence, 35 out of 51 banks with assets between $10 billion and $100 billion saw year-over-year growth in earnings per share (EPS) for the fourth quarter, based on financial reports released between January 13 and January 24. In addition, 27 regional banks posted quarter-over-quarter improvements, while 22 recorded EPS gains on both a quarterly and annual basis. Meanwhile, only 11 regional banks experienced EPS declines in both comparisons. A report from S&P Global Ratings noted that fourth-quarter net income improved due to easing pressures on net interest margins (NIM) and an increase in fee income. For the full year 2024, the net income benefited from reduced provisions and stable fee income, though NIM compression partially offset these gains. Regional banks saw another consecutive increase in net interest income (NII) during the quarter, supported by modest loan growth and an improved NIM. However, for the full year, NII remained under pressure. The report further mentioned that in the fourth quarter, median NIM rose by 5 basis points to 3.14%, as declining deposit costs outweighed the impact of lower loan yields and asset repricing. The firm anticipates a slight increase in earnings for 2025, driven by the possibility of higher NIMs and a gradual uptick in loan growth. The banking sector remains a favorite among investors as it ranks among the top two sectors for dividend payments. An S&P Global report estimated that banks worldwide distribute approximately $380 billion in dividends. Given this, we will take a look at some of the best dividend stocks from the regional banking sector. An investor confidently discussing portfolio options with their asset manager. For this article, we used a Yahoo Finance screener to identify regional banking companies. From the resultant list, we picked 11 stocks with the highest number of hedge fund investors, as per Insider Monkey's database of Q4 2024. The stocks are ranked in ascending order of hedge funds' sentiment towards them. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). Number of Hedge Fund Holders: 67 The PNC Financial Services Group, Inc. (NYSE:PNC) is an American bank holding and financial services company that offers a wide range of related services to its consumers. The company delivered a strong performance in 2024 while continuing to invest in the long-term growth of its franchise. The bank expanded its customer base, strengthened client relationships, and remained committed to serving its stakeholders. It achieved record revenue and further reinforced its capital position. Meanwhile, PNC maintained a disciplined approach to cost management, resulting in positive operating leverage. The PNC Financial Services Group, Inc. (NYSE:PNC) reported revenue of $5.6 billion in the fourth quarter of 2024, which showed a 4% growth from the same period last year. The company posted a net interest income of $3.5 billion, reflecting a 3% increase, or $113 million, primarily due to lower funding costs and the ongoing repricing of fixed-rate assets. The bank's net interest margin improved by 11 basis points, reaching 2.75%. Meanwhile, fee income declined by 4%, or $84 million, to $1.9 billion, as elevated residential mortgage and capital markets activity in the third quarter contributed to the decrease. The PNC Financial Services Group, Inc. (NYSE:PNC) currently offers a quarterly dividend of $1.60 per share and has a dividend yield of 3.97%, as of April 3. The company returned $0.9 billion to shareholders in the most recent quarter, including $0.6 billion in dividends. In addition, PNC has been growing has dividends for 14 consecutive years, which makes it one of the best dividend stocks. Overall, PNC ranks 1st on our list of the best dividend stocks from the regional banking sector. While we acknowledge the potential of PNC as an investment, our conviction lies in the belief that some deeply undervalued dividend stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a deeply undervalued dividend stock that is more promising than PNC but that trades at 10 times its earnings and grows its earnings at double digit rates annually, check out our report about the . READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at .
