U.S. Bancorp Looks Better Placed Than Most

In a bank sector that has been hit hard, U.S. Bancorp (NYSE:USB) has held up better than most. I thought valuation and operating leverage were looking more interesting in late February, and though the shares are down about 20% since then, they’ve outperformed many of their large peers.

I do believe that U.S. Bancorp shares look undervalued today for longer-term shareholders. I expect bank stocks to remain under a cloud a little while longer, particularly with so much uncertainty about the economy in 2023. Like PNC (PNC), though, I think U.S. Bancorp is a more conservatively-run “Main Street”-focused bank that has operating leverage drivers and opportunities to post above-average loan and fee income growth even in a tougher environment.

 

Find the full article here: 

U.S. Bancorp Looks Better Placed Than Most