With a market capitalization of $72.6 billion, US Bancorp (USB) is one of the largest financial services holding companies in the US and the parent of US Bank. Headquartered in Minneapolis, it offers retail and commercial banking, payments, lending and wealth management services nationwide.
Despite its scale, US Bancorp has lagged the broader market over the past year. USB is down 2.6% over this period, while the broader S&P 500 index ($SPX) is up nearly 19.6%. The trend has continued through 2025, with the stock falling 2.5% so far this year, compared to a 16.5% gain for the index.
Even within its own industry group, USB’s relative weakness is evident. The stock has lagged the iShares US Regional Banks ETF (IAT), which gained marginally over the past year and fell 1.8% in 2025.
On October 16, USB shares fell 1.7% after the company released its third-quarter fiscal 2025 earnings. It reported $7.3 billion in revenue, up 6.8% year-over-year, and earnings per share (EPS) of $1.22, up 18% from last year. The bank benefited from strong fee income growth and improved net interest margin of 2.8%, supported by disciplined cost management and positive operating leverage.
For the current fiscal year, which ends in December, analysts expect USB’s EPS to grow 13.1% to $4.50 on a diluted basis. The company’s track record of earnings surprises is impressive. It beat the consensus estimate in each of the last four quarters.
Among the 25 analysts covering USB stock, the consensus is a “moderate buy.” This is based on 12 “Strong Buy” ratings, one “Moderate Buy”, 11 “Holds” and one “Strong Sell” recommend.
This setup is more bullish than a month ago, with 11 analysts suggesting a “strong buy.”
On October 10, JP Morgan analyst Vivek Juneja reiterated a “Sell” rating on US Bancorp and set a price target of $50.
The average price target of $55.40 represents a premium of 18.8% to USB’s current price levels. The Street’s $70 high price target suggests an ambitious 50.2% upside potential.
On the date of publication, Kritika Sarmah had no (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are for informational purposes only. This article was originally published on Barchart.com