With a market cap of $95.1 billion, U.S. Bancorp (USB) is a diversified financial services holding company headquartered in Minneapolis, Minnesota, and the parent company of U.S. Bank, one of the largest commercial banks in the United States. The company provides a broad range of financial products and services to individuals, businesses, corporations, government entities, and institutional clients.
Shares of USB have outpaced the broader market over the past 52 weeks. USB stock has increased 27.8% over this time frame, while the broader S&P 500 Index ($SPX) has returned 21.8%. Moreover, shares of the company are up 12% on a YTD basis, compared to SPX’s 11% gain.
More Top Stocks Daily: Go behind Wall Street’s hottest headlines with Barchart’s Active Investor newsletter.
Focusing more closely, shares of the financial services giant have outperformed the State Street Financial Select Sector SPDR ETF’s (XLF) 8.2% rise over the past 52 weeks and 7.4% in 2026.
www.barchart.com On Oct. 15, U.S. Bancorp posted its Q3 results and its shares jumped 2%. EPS of $1.34 exceeded analyst expectations of $1.32, although revenue of $7.97 billion came in slightly below the $7.99 billion consensus estimate. Net interest income, on a taxable-equivalent basis, increased 5.6% year over year to $4.49 billion.
Growth was supported by an 8% increase in average loans to $409.55 billion, the acquisition of a small-business credit card portfolio and benefits from fixed-asset repricing. Average deposits also increased 2.9% to $526.60 billion, supported by higher savings and money-market account balances. Noninterest income climbed 13.1% to $3.48 billion, with fee revenue rising 14.9% to $3.55 billion. During the quarter, U.S. Bank launched two new small-business credit cards, Business Essentials and Business Essentials Plus, expanding its offering to small-business customers.
For the fiscal year ending in December 2026, analysts expect U.S. Bancorp’s EPS to improve 14.7% year over year to $5.30. The company’s earnings surprise history is promising. It beat the consensus estimates in each of the last four quarters.
Among the 24 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on 13 “Strong Buy” ratings, one “Moderate Buy,” and 10 “Holds.”
www.barchart.com This configuration is more bullish than one month ago, with 12 “Strong Buy” ratings on the stock.
On Oct. 16, Goldman Sachs analyst Richard Ramsden lowered U.S. Bancorp’s price target to $61 from $64 while maintaining a “Neutral” rating. The analyst viewed the bank’s Q3 results positively, highlighting core ROTCE of 20.1%, approximately 140 basis points above consensus, and an increase in full-year guidance. However, Goldman noted that the improved outlook was already largely priced into the stock.
The mean price target of $68.56 represents a 14.7% premium to USB’s current price levels. The Street-high price target of $76 suggests a 27.2% potential upside.
On the date of publication, Kritika Sarmah did not directly have a position 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.
More news from Barchart
2 Red Flags Supermicro Investors Shouldn’t Ignore After Earnings Nasdaq Futures Climb as Chip Stocks Bounce After Rout; Key U.S. Jobs Report in Focus This Insurance Stock Just Raised Its Dividend by Over 11% This Could be a Major Problem for Alphabet Investors