PNC Financial Offers Strong Upcoming Earnings Leverage - And It's Baked Into Stock Price

 

I think that about the worst anybody can say about PNC Financial (PNC) is that it’s a conservatively-run bank. With that conservatism, it’s never going to have the fastest loan growth or the greatest asset-sensitivity, nor is it likely to invest large sums into uncertain growth projects. Of course, as the last cycle has shown, it’s also not going to self-destruct because aggressively-written loans go “bang” during a downturn.

I’ve liked these shares for a while, and I’d describe the stock’s performance since my last update as “lackluster”, and it has underperformed larger bank peers who have more leverage to self-improvement and the economic recovery in 2022/23. Still, relative to where the shares are now and what other stocks seem to offer, I find the return today less compelling, and this isn’t the first large-cap bank I’d think to buy with new money.

 

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PNC Financial Offers Strong Upcoming Earnings Leverage - And It's Baked Into Stock Price