U.S. Bancorp (USB) - 9.92% Below 52-Week High: Buy or Wait?

Stock Details

U.S. Bancorp (USB), a prominent company in the financial services sector within the banks - regional industry, is based in USA and primarily trades on the NYSE.Currently, the stock is trading at $54.55. Over the past 52 weeks, it has ranged between $40.49 and $60.56. This places the current price at 90.1% of its 52-week high and 34.7% above its 52-week low. Recent trading volume was recorded at 5,842,690. The International Securities Identification Number (ISIN) for this stock is US9029733048.

Fundamentals

Valuation Metrics

P/E Ratio (TTM)

11.64

Below market average

Forward P/E

11.12

Earnings expected to grow

PEG Ratio

1.92

Reasonably valued

Price to Book

1.48

EPS (TTM)

$4.77

Price to Sales

3.23

Beta

1.02

Similar volatility to market

Q:How is USB valued relative to its earnings and growth?

U.S. Bancorp trades at a P/E ratio of 11.64, which is below the market average of approximately 20. This lower valuation could indicate the market has modest growth expectations, or it might represent an undervalued opportunity if the fundamentals are strong. Looking ahead, the forward P/E of 11.12 is lower than the current P/E, indicating analysts expect earnings to grow over the next year. The PEG ratio of 1.92 indicates reasonable value when growth is considered.

Q:What is USB's risk profile compared to the market?

With a beta of 1.02, U.S. Bancorp is roughly as volatile as the market, moving in line with broad market trends. This moderate beta suggests the stock offers market-level returns without excessive volatility. The price-to-book ratio of 1.48 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

Performance & Growth

Profit Margin

29.30%

Operating Margin

37.80%

Return on Equity

12.30%

Return on Assets

1.14%

Revenue Growth (YoY)

4.60%

Earnings Growth (YoY)

14.80%

Q:How profitable and efficient is USB's business model?

U.S. Bancorp achieves a profit margin of 29.30%, meaning it retains $29.30 from every $100 in revenue after all expenses. This is an impressive margin, indicating strong pricing power and efficient cost management that allows the company to generate substantial profits. The operating margin of 37.80% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 12.30% and ROA at 1.14%, the company achieves moderate returns on invested capital.

Q:What are USB's recent growth trends?

U.S. Bancorp's revenue grew by 4.60% year-over-year, showing steady progress in growing the business. This positive trajectory indicates the company maintains competitive positioning in its markets. Earnings increased by 14.80% year-over-year, outpacing revenue growth through improved margins. These growth metrics should be evaluated against BANKS - REGIONAL industry averages for proper context.

Dividend Information

Dividend Per Share

$2.06

Dividend Yield

3.72%

Ex-Dividend Date

Mar 31, 2026

Dividend Date

Apr 15, 2026

Q:What dividend income can investors expect from USB?

U.S. Bancorp offers a dividend yield of 3.72%, paying $2.06 per share annually. This above-average yield of 2-4% provides meaningful income while still allowing the company to reinvest for growth. It compares favorably to the S&P 500 average and offers competitive returns versus bonds in the current rate environment. To receive the next dividend, shares must be purchased before the ex-dividend date of Mar 31, 2026.

Q:How reliable is USB's dividend for long-term investors?

The dividend sustainability can be assessed through the payout ratio - U.S. Bancorp pays $2.06 per share in dividends against earnings of $4.77 per share, resulting in a payout ratio of 43.19%. This balanced payout between 30-60% suggests a sustainable dividend policy that allows both shareholder returns and business reinvestment. The dividend appears well-covered by earnings. The next dividend payment is scheduled for Apr 15, 2026.

Company Size & Market

Market Cap

$86.2B

Revenue (TTM)

$26.65B

Revenue/Share (TTM)

$17.13

Shares Outstanding

1.55B

Book Value/Share

$37.54

Asset Type

Common Stock

Q:What is USB's market capitalization and position?

U.S. Bancorp has a market capitalization of $86.2B, classifying it as a large-cap stock ($10B-$200B). Large-caps are typically industry leaders with established business models, offering a balance of stability and growth potential. They often provide dividend income and are core holdings in institutional portfolios. With 1.55B shares outstanding, the company's ownership is widely distributed. As a participant in the BANKS - REGIONAL industry, it competes with other firms in this sector.

Q:How does USB's price compare to its book value?

U.S. Bancorp's book value per share is $37.54, while the current stock price is $54.55, resulting in a price-to-book (P/B) ratio of 1.45. This reasonable premium to book value suggests the market values the company's earnings power and intangible assets appropriately. Most profitable companies trade between 1-3x book value. As a common stock, this represents equity ownership with voting rights.

Analyst Ratings

Analyst Target Price

$63.48

16.37% upside potential

Analyst Recommendations

Strong Buy

Buy

Hold

Sell

Strong Sell

Q:How reliable are analyst predictions for USB?

22 analysts cover USB with 59% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The mixed views reflect uncertainty about the outlook. The consensus target of $63.48 implies 16.4% upside, but targets are often adjusted to follow price moves rather than predict them.

Q:What is the Wall Street consensus on USB?

Current analyst recommendations:4 Strong Buy, 9 Buy, 8 Hold, 01 Strong Sell. The bullish tilt suggests optimism about future prospects, though investors should conduct independent research.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.

Fundamentals last updated: May 10, 2026, 02:39 AM

U.S. Bancorp (USB) Stock