U.S. Bancorp Rises 12% in 3 Months: More Upside Left?

U.S. Bancorp’s (NYSE: USB) shares have gained 12% in the past three months, outperforming the industry’s growth of 5.1% and the S&P 500’s rise of 5.8%. USB is currently trading just 1% off its 52-week high of $45.88 hit on Jul 30. Image Source: Zacks Investment ResearchThe company’s inorganic growth move and strong balance sheet will support its financials in the long term.Analyst Estimates: Over the past seven days, the Zacks Consensus Estimate for earnings per share of $3.89 and $4.23 has remained unchanged for 2024 and 2025, respectively. Although the metrics indicate a decline of 9.74% in 2024, it will rebound and grow 8.7% in 2025.Now let’s discuss some key factors that could provide further impetus to USB stock.Inorganic Expansion to Drive Growth: U.S. Bancorp has made several strategic acquisitions in the last few years, which have opened up new markets for the company while fortifying its existing markets.In August 2024, USB’s lead banking division, U.S. Bank, prolonged its focus on the healthcare industry with the acquisition of Salucro Healthcare Solutions LLC.

The buyout was completed on Aug 21, 2024. In the same month, U.S. Bank entered into a strategic partnership with Edward Jones. The collaboration is intended to offer comprehensive banking and credit card solutions to Edward Jones clients.In 2022, U.S. Bancorp completed the acquisition of MUFG Union Bank’s core regional banking franchise, expanding its branch network and enjoying greater access to digital banking tools. In 2023, cost synergies of $900 million were realized from this merger.Overall, these strategic acquisitions and partnerships are likely to bolster U.S. Bancorp’s market position, diversify its revenue streams and drive long-term growth.Fed’s Rate Cut Decision to Aid Financial: The Fed chairman, …Full story available on Benzinga.com