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Truist Financial Corporation (TFC), headquartered in Charlotte, North Carolina, is a leading financial services provider specializing in banking and trust services. Valued at $58.6 billion by market cap, the company provides a diverse array of services, encompassing retail, small business, and commercial banking, asset management, capital markets, commercial real estate, corporate and institutional banking, insurance, mortgage, payments, and specialized lending and wealth management solutions.
Shares of this leading commercial bank have underperformed the broader market over the past year. TFC has declined 1.5% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 17%. In 2025, TFC stock is up 2%, compared to SPX’s 8.2% rise on a YTD basis.
Narrowing the focus, TFC’s underperformance is also apparent compared to the SPDR S&P Regional Banking ETF (KRE). The exchange-traded fund has gained about 3.9% over the past year. However, TFC’s single-digit returns on a YTD basis outshine the ETF’s marginal gains over the same time frame.
TFC's underperformance is due to higher net interest income and total non-interest income, as well as lower expenses. Additionally, elevated expenses and weak asset quality in a challenging operating environment pose significant challenges for the company.
On Jul. 18, TFC shares closed down more than 1% after reporting its Q2 results. Its adjusted EPS of $0.91 missed the consensus estimate by a penny. The company’s total revenues were $4.99 billion, marginally beating the consensus estimate of $4.98 billion.
For the current fiscal year, ending in December, analysts expect TFC’s EPS to grow 4.3% to $3.85 on a diluted basis. The company’s earnings surprise history is mixed. It beat the consensus estimates in three of the last four quarters while missing the forecast on another occasion.
Among the 22 analysts covering TFC stock, the consensus is a “Moderate Buy.” That’s based on nine “Strong Buy” ratings, two “Moderate Buys,” 10 “Holds,” and one “Strong Sell.”
This configuration is more bullish than two months ago, with eight analysts suggesting a “Strong Buy.”
On Jul. 21, Morgan Stanley (MS) kept an “Equal Weight” rating on TFC and raised the price target to $48, implying a potential upside of 8.4% from current levels.
The mean price target of $48.86 represents a 10.4% premium to TFC’s current price levels. The Street-high price target of $55 suggests an upside potential of 24.2%.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
