This article was coproduced with Dividend Sensei.
Warren Buffett famously said to be “greedy when others are fearful.” In the last few weeks, we’ve seen the second biggest two-week crash in regional banking history.
A 28% plunge that was only surpassed during the worst days of the Great Financial Crisis.
I’ve been carefully monitoring the financial stress in the financial markets via the St. Louis and Chicago Fed financial stress indexes, which consist of 123 metrics.
I can confirm there’s no financial crisis brewing, yet even the highest quality regional banks have gone off a cliff as if the economy were on fire.
Let me share with you the three reasons why I just recommended U.S. Bancorp (NYSE:USB).
Specifically, when considering the above statement of being “greedy when others are fearful, why this king of regional banks is 45% undervalued and could quadruple in the next six years.
Reason One: One Of The Safest Banks On Earth
The regional banking crisis is a glorious opportunity to buy USB because it absolutely should not have fallen 22% in the last three weeks.
Here’s how it scores on the 3,000 point Dividend Kings Safety and Quality model, which looks at over 1,000 metrics.
Dividend Safety
Rating | Dividend Kings Safety Score (250 Point Safety Model) | Approximate Dividend Cut Risk (Average Recession) | Approximate Dividend Cut Risk In Pandemic Level Recession |
1 – unsafe | 0% to 20% | over 4% | 16+% |
2- below average | 21% to 40% | over 2% | 8% to 16% |
3 – average | 41% to 60% | 2% | 4% to 8% |
4 – safe | 61% to 80% | 1% | 2% to 4% |
5- very safe | 81% to 100% | 0.5% | 1% to 2% |
USB | 83% | 0.5% | 1.90% |
Risk Rating | Medium Risk 59th percentile risk management | A+ negative outlook credit rating =0.6% 30-year bankruptcy risk | 15% or less max risk cap |
Long-Term Dependability
Company | DK Long-Term Dependability Score | Interpretation | Points |
Non-Dependable Companies | 20% or below | Poor Dependability | 1 |
Low Dependability Companies | 21% to 39% | Below-Average Dependability | 2 |
S&P 500/Industry Average | 40% to 59% | Average Dependability | 3 |
Above-Average | 60% to 79% | Dependable | 4 |
Very Good | 80% or higher | Very Dependable | 5 |
USB | 93% | Very Dependable | 5 |
Overall Quality
USB | Final Score | Rating |
Safety | 83% | 5/5 very safe |
Business Model | 60% | 2/3 narrow moat |
Dependability | 92% | 5/5 very dependable |
Total | 78% | 12/13 Super SWAN |
Risk Rating | 3/5 Medium Risk | |
15% OR LESS Max Risk Cap Rec | 10% Margin of Safety For A Potentially Good Buy |
This is one of the world’s highest-quality banks.
Why The Market Is Dead Wrong About U.S. Bank
Founded in 1929 in Minneapolis, Minnesota, US is a 94-year-old bank that has survived and thrived through:
15 recessions
the Great Depression
inflation as high as 22%
interest rates as high as 20%
23 bear markets
the Great Financial Crisis (during which it remained profitable)
U.S. Bank is Morningstar’s “lowest risk” regional bank recommendation with the lowest risk of a bank run.
Why?
“U.S. Bancorp is the largest non-GSIB in the U.S. and has been one of the most profitable regional banks we cover. Few domestic competitors can match its operating efficiency and returns on equity over the past 15 years.” – Morningstar
U.S. Bank is the fifth-largest bank in America and the largest regional bank with almost $600 billion in assets.
It’s the largest traditional bank that does almost everything outside of investment banking, including:
mortgage
refinance
auto
boat and RV loans
credit lines
credit card services
merchant, bank
checking and savings accounts
debit cards
online and mobile banking
ATM processing
mortgage banking
insurance, brokerage, and leasing services.
U.S. Bank has $525 billion in deposits, 48% of which are insured by the FDIC.
SVB had 93% uninsured deposits
Signature Bank was 89%
First Republic 67%
36% consumer and business banking.
27% payment services.
19% corporate and commercial banking.
18% wealth management.
What about unreleased bond losses on its “hold to maturity” bond portfolio? $11 billion as of March 13, or 25% of its equity.
Even if USB had to sell all of its bonds and realize the loss, it would remain solvent.
unlike JPM or BAC, and Citi
USB is rated A to AA by four credit rating agencies.
It currently has $53 billion in cash, and regional banks are seeing deposits return in the last week ($6 billion).
The stability of its long-term deposits is AA-rated, on par with the likes of JPM and BAC.
“The negative outlook reflects our view that USB’s acquisition of MUFG Union Bank’s core regional bank franchise heightens integration and operational risks. The acquisition is an $8 billion cash and stock transaction that increases USB’s loans and deposits by 20% and 21%, respectively, to $355 billion and $527 billion. It is the biggest acquisition USB has made since the financial crisis and should close in the first half of 2022, pending regulatory approval.” – S&P
In 2021 USB bought Union Bank growing its assets by 20%. It was a complex deal, and so far, execution has been going well.
USB’s credit ratings are on par or stronger than America’s strongest banks, with a 0.29% to 0.66% 30-year bankruptcy risk, according to Moody’s, S&P, Fitch, and DBRS (Canada’s biggest rating agency).
How can we tell?
Because after a short spike in its efficiency ratio (non-interest cost/revenue), the bank’s superior economies of scale are expected to bring the efficiency ratio down to 53% in 2025.
“The company’s balance sheet is sound, its capital investment decisions are exemplary, and its capital return strategy is appropriate.” – Morningstar
Morningstar and rating agencies consider USB one of the best-run banks in the country.
CEO Andy Cecere has been with the bank since 1985.
38 years with USB bank
Chief Financial Officer from 2007 to 2015 (including during the Great Recession)
Chief Operating Officer 2015 to 2017
CEO since 2017
Its management is among the elite of US banking, with conservative banking standards on par with Canadian banks.
“U.S. Bancorp… came through the 2008-09 global financial crisis without realizing a loss in any quarter…
We believe he did an admirable job with strategic acquisitions (such as buying trust segments from Bank of America and others in the U.S. and now from Deutsche Bank and the Quintillion acquisition to begin growth in Europe) and growth initiatives over the years, helping the bank to expand key businesses such as payments, trust, and the capital markets loan group.
With Cecere in charge, the bank has continued to control expenses while still investing in technology and efficiency initiatives. The conservative underwriting culture is also still in place.” – Morningstar
The inverted yield curve is squeezing bank net interest margins as customers move money from low-rate checking to higher-yielding accounts.
USB’s NIM is proving more resilient thanks to a unique mix of businesses. As a result of higher rates and the Union Bank deal, its net interest income is expected to remain robust and almost double from 2021 to 2025.
The bottom line is if USB fails, I’ll eat my hat. This bank should not have crashed 20% in the last three weeks.
Reason Two: One Of The Best Growth Profiles In The Industry
USB is trading as if its fundamentals are collapsing. Here is what’s actually going on.
Metric | 2022 Growth | 2023 Growth Consensus (recession year) | 2024 Growth Consensus | 2025 Growth Consensus |
Sales | 26% (Union bank acquisition) | 4% | 2% | 7% |
Dividend | 10% | 4% (Official) | 4% | 11% |
Earnings | -28% | 29% | 13% | 13% |
Book Value | -12% | 10% | 12% | 10% |
(Source: FAST Graphs, FactSet)
Does this seem like a failing bank? How about this?
Analysts expect USB to grow at 13% annually long term, one of the fastest-growing large banks in the US.
Analyst margins of error on USB tend to be plus or minus 10%, and within a reasonable 20% margin of error, it grew as expected 92% of the time in the last 11 years.
Investment Strategy | Yield | LT Consensus Growth | LT Consensus Total Return Potential | Long-Term Risk-Adjusted Expected Return |
U.S. Bancorp | 5.5% | 13.0% | 18.5% | 13.0% |
ZEUS Income Growth (My family hedge fund) | 4.3% | 9.9% | 14.2% | 9.9% |
Schwab US Dividend Equity ETF | 3.8% | 10.2% | 14.0% | 9.8% |
Vanguard Dividend Appreciation ETF | 2.0% | 11.3% | 13.3% | 9.3% |
Nasdaq | 0.8% | 10.9% | 11.7% | 8.2% |
Dividend Aristocrats | 1.9% | 8.5% | 10.4% | 7.3% |
S&P 500 | 1.7% | 8.5% | 10.2% | 7.1% |
REITs | 4.0% | 6.1% | 10.1% | 7.1% |
60/40 Retirement Portfolio | 2.1% | 5.1% | 7.2% | 5.0% |
(Source: DK Research Terminal, FactSet, Morningstar)
USB’s risk-adjusted expected returns are 13%, far superior to almost any long-term investment opportunity such as the S&P, aristocrats, or Nasdaq.
Total Returns Since 1985
Since 1985 USB has beaten the market by a modest 1%, including this current bear market that has left it almost 45% undervalued.
11.5% annual return (62X return) vs 11% S&P (51X return)
JPM 10.3% annual return
Citigroup 4.1% return
It’s beaten the big banks and with far less volatility to boot.
USB’s average rolling returns have been 13% to 15% per year for the last 37 years, superior to big banks, the S&P, and even the Nasdaq (13.5% returns).
But you don’t have to wait decades for USB to make you rich. Just take a look at what this deep value Super SWAN bank offers today.
2025 Consensus Total Return Potential
2029 Consensus Total Return Potential
If USB grows as expected and returns to historical fair value of 13.6X earnings, it could deliver 135% total returns within the next three years and 317% within the next six years.
Think these numbers are overly optimistic? Consider USB’s historical rallies off bear market lows.
USB Best Rallies Off Bear Market Lows
98% within one year
410% within three years (72% annually)
804% within five years (55% annually)
1248% within seven years (45% annually)
1908% within ten years (35% annually)
2791% within 15 years (25% annually)
Today, USB is a screaming buy.
Reason Three: A Wonderful Company At A Flabbergastingly Great Price
For two decades, tens of millions of income investors have consistently paid between 13.1 and 13.7X earnings for USB.
Metric | Historical Fair Value Multiples (all Years) | 2022 | 2023 | 2024 | 2025 | 12-Month Forward Fair Value |
5-Year Average Yield | 3.20% | $58.75 | $60.00 | $60.00 | $70.00 | |
PE | 13.60 | $50.18 | $65.96 | $72.08 | $81.60 | |
Average | $54.13 | $62.84 | $65.49 | $75.36 | $63.55 | |
Current Price | $35.06 | |||||
Discount To Fair Value | 35.23% | 44.21% | 46.46% | 53.47% | 44.83% | |
Upside To Fair Value (including dividend) | 54.39% | 79.23% | 86.79% | 114.93% | 86.74% | |
2023 EPS | 2024 EPS | 2023 Weighted FFO | 2024 Weighted FFO | 12-Month Forward PE | Historical Average Fair Value Forward PE | Current Forward PE |
$4.85 | $5.30 | $3.54 | $1.43 | $4.97 | 12.8 | 7.1 |
Including the dividend yield, USB’s historical fair value is about 13X earnings, and today it trades at just 7X, pricing in -2.8% growth while actually growing at double digits.
It’s an anti-bubble blue chip with nearly 100% upside to fair value.
Rating | Margin Of Safety For Medium-Risk 12/13 Super SWAN | 2023 Fair Value Price | 2024 Fair Value Price | 12-Month Forward Fair Value |
Potentially Reasonable Buy | 0% | $62.84 | $65.49 | $63.55 |
Potentially Good Buy | 10% | $56.56 | $58.94 | $57.20 |
Potentially Strong Buy | 20% | $50.27 | $52.39 | $50.84 |
Potentially Very Strong Buy | 30% | $39.59 | $45.84 | $44.49 |
Potentially Ultra-Value Buy | 40% | $37.70 | $39.29 | $38.13 |
Currently | $35.06 | 44.21% | 46.46% | 44.83% |
Upside To Fair Value (Including Dividends) | 84.71% | 92.26% | 86.74% |
USB is a potentially table-pounding, Buffett-style “fat pitch” buy for anyone comfortable with its risk profile.
Risk Profile: Why U.S. Bancorp Isn’t Right For Everyone
There are no risk-free companies, and no company is right for everyone. You have to be comfortable with the fundamental risk profile.
U.S. Bancorp Risk Summary
“We assign our U.S. regional banks an Uncertainty Rating of Medium. U.S. Bancorp has a history of making smart acquisitions and securing strategic positions in attractive markets. Given the competence of management and the bank’s history, we view risks from future acquisitions as low.
We view the macroeconomic backdrop as the primary risk to the bank. U.S. Bancorp’s profitability will be materially affected by the interest rate cycle and the effects of credit and debt cycles, which are not under management’s control. In addition, the bank is subject to the Federal Reserve’s annual stress test.
From an ESG perspective, commercial banks are expected to have strong product governance. Predatory or discriminatory lending practices are examples of poor product governance, which can sometimes affect certain banks. We view most product governance and social risks as manageable and incorporate a steady level of operating expenses related to compliance and litigation in our models. Outside of the rare, headline-grabbing scandals, we don’t see social risks as having a material effect on our valuation. Banks also lend to certain sectors that can come under more scrutiny, like gun manufacturers or energy, for example. Commercial banks don’t have a large environmental footprint, and governance practices align with most companies.” – Morningstar
USB’s Risk Profile Includes
economic cyclicality risk (63% EPS decline in the GFC and 26% in the Pandemic)
regulatory risk (capital requirements and Fed approval of buybacks and dividends)
interest rate risk (affects net interest income)
M&A execution risk (strong history of smart acquisitions)
worker retention risk (tightest job market in 54 years)
How do we quantify, monitor, and track such a complex risk profile? By doing what big institutions do.
Long-Term Risk Management Analysis: How Large Institutions Measure Total Risk Management
DK uses S&P Global’s global long-term risk-management ratings for our risk rating.
S&P has spent over 20 years perfecting their risk model
which is based on over 30 major risk categories, over 130 subcategories, and 1,000 individual metrics
50% of metrics are industry specific
this risk rating has been included in every credit rating for decades
The DK risk rating is based on the global percentile of a company’s risk management compared to 8,000 S&P-rated companies covering 90% of the world’s market cap.
USB Scores 59th Percentile On Global Long-Term Risk Management
S&P’s risk management scores factor in things like:
supply chain management
crisis management
cyber-security
privacy protection
efficiency
R&D efficiency
innovation management
labor relations
talent retention
worker training/skills improvement
customer relationship management
climate strategy adaptation
corporate governance
brand management
USB’s Long-Term Risk Management Is The 279th Best In The Master List (44th Percentile In The Master List)
Classification | S&P LT Risk-Management Global Percentile | Risk-Management Interpretation | Risk-Management Rating |
BTI, ILMN, SIEGY, SPGI, WM, CI, CSCO, WMB, SAP, CL | 100 | Exceptional (Top 80 companies in the world) | Very Low Risk |
Strong ESG Stocks | 86 | Very Good | Very Low Risk |
Foreign Dividend Stocks | 77 | Good, Bordering On Very Good | Low Risk |
Ultra SWANs | 74 | Good | Low Risk |
Dividend Aristocrats | 67 | Above-Average (Bordering On Good) | Low Risk |
Low Volatility Stocks | 65 | Above-Average | Low Risk |
Master List average | 61 | Above-Average | Low Risk |
Dividend Kings | 60 | Above-Average | Low Risk |
U.S. Bancorp | 59 | Average, Bordering On Above-Average | Medium Risk (bordering on low risk) |
Hyper-Growth stocks | 59 | Average, Bordering On Above-Average | Medium Risk |
Dividend Champions | 55 | Average | Medium Risk |
Monthly Dividend Stocks | 41 | Average | Medium Risk |
(Source: DK Research Terminal)
USB’s risk-management consensus is in the bottom 44% of the world’s highest quality companies and similar to that of such other blue-chips as
Polaris (PII) Super SWAN dividend champion
Sysco (SYY) Ultra SWAN dividend aristocrat
Genuine Parts Company (GPC) Super SWAN dividend king
Essex Property Trust (ESS) Ultra SWAN dividend aristocrat
Pepsi (PEP) Ultra SWAN dividend king
The bottom line is that all companies have risks, and USB is average, bordering on above-average, at managing theirs, according to S&P.
How We Monitor USB’s Risk Profile
28 analysts
four credit rating agencies
32 experts who collectively know this business better than anyone other than management
“When the facts change, I change my mind. What do you do, sir?”
– John Maynard Keynes
There are no sacred cows at iREIT or Dividend Kings. Wherever the fundamentals lead, we always follow. That’s the essence of disciplined financial science, the math behind retiring rich and staying rich in retirement.
Bottom Line: U.S. Bancorp Is A 5.5% Table-Pounding Buy
Let me be clear: I’m not calling the bottom in USB (I’m not a market-timer).
Even Super SWANs can fall hard and fast in a bear market.
Fundamentals are all that determine safety and quality, and my recommendations.
over 30+ years, 97% of stock returns are a function of pure fundamentals, not luck
in the short term; luck is 25X as powerful as fundamentals
in the long term, fundamentals are 33X as powerful as luck
While I can’t predict the market in the short term, here’s what I can tell you about USB.
the largest regional bank in America
one of the highest-quality banks in America
impeccable management team
A to AA-rated balance sheet
very safe 5.5% yield growing at 6% through 2028
13% risk-adjusted long-term return potential versus 10.2% S&P
historically 45% undervalued
7.1X earnings vs 13X historical
317% consensus return potential over the next six years, 25% annually, 6X more than the S&P 500
3X better risk-adjusted expected returns than the S&P 500 over the next five years
3X better income over the next five years than the S&P 500
If you want to profit from the market’s knee-jerk overreaction to the banking crisis, consider buying USB today.
If you want an A-rated bank with a battle-tested management team, USB is as good as they come.
And if you want to lock in a very safe 5.5% yield and the potential to quadruple your money in six years, then USB is just what the doctor ordered.
Author’s note: Brad Thomas is a Wall Street writer, which means he’s not always right with his predictions or recommendations. Since that also applies to his grammar, please excuse any typos you may find. Also, this article is free: Written and distributed only to assist in research while providing a forum for second-level thinking.
Source: seekingalpha.com
This article was coproduced with Dividend Sensei.
Warren Buffett famously said to be “greedy when others are fearful.” In the last few weeks, we’ve seen the second biggest two-week crash in regional banking history.
A 28% plunge that was only surpassed during the worst days of the Great Financial Crisis.
I’ve been carefully monitoring the financial stress in the financial markets via the St. Louis and Chicago Fed financial stress indexes, which consist of 123 metrics.
I can confirm there’s no financial crisis brewing, yet even the highest quality regional banks have gone off a cliff as if the economy were on fire.
Let me share with you the three reasons why I just recommended U.S. Bancorp (NYSE:USB).
Specifically, when considering the above statement of being “greedy when others are fearful, why this king of regional banks is 45% undervalued and could quadruple in the next six years.
Reason One: One Of The Safest Banks On Earth
The regional banking crisis is a glorious opportunity to buy USB because it absolutely should not have fallen 22% in the last three weeks.
Here’s how it scores on the 3,000 point Dividend Kings Safety and Quality model, which looks at over 1,000 metrics.
Dividend Safety
Rating | Dividend Kings Safety Score (250 Point Safety Model) | Approximate Dividend Cut Risk (Average Recession) | Approximate Dividend Cut Risk In Pandemic Level Recession |
1 – unsafe | 0% to 20% | over 4% | 16+% |
2- below average | 21% to 40% | over 2% | 8% to 16% |
3 – average | 41% to 60% | 2% | 4% to 8% |
4 – safe | 61% to 80% | 1% | 2% to 4% |
5- very safe | 81% to 100% | 0.5% | 1% to 2% |
USB | 83% | 0.5% | 1.90% |
Risk Rating | Medium Risk 59th percentile risk management | A+ negative outlook credit rating =0.6% 30-year bankruptcy risk | 15% or less max risk cap |
Long-Term Dependability
Company | DK Long-Term Dependability Score | Interpretation | Points |
Non-Dependable Companies | 20% or below | Poor Dependability | 1 |
Low Dependability Companies | 21% to 39% | Below-Average Dependability | 2 |
S&P 500/Industry Average | 40% to 59% | Average Dependability | 3 |
Above-Average | 60% to 79% | Dependable | 4 |
Very Good | 80% or higher | Very Dependable | 5 |
USB | 93% | Very Dependable | 5 |
Overall Quality
USB | Final Score | Rating |
Safety | 83% | 5/5 very safe |
Business Model | 60% | 2/3 narrow moat |
Dependability | 92% | 5/5 very dependable |
Total | 78% | 12/13 Super SWAN |
Risk Rating | 3/5 Medium Risk | |
15% OR LESS Max Risk Cap Rec | 10% Margin of Safety For A Potentially Good Buy |
This is one of the world’s highest-quality banks.
Why The Market Is Dead Wrong About U.S. Bank
Founded in 1929 in Minneapolis, Minnesota, US is a 94-year-old bank that has survived and thrived through:
15 recessions
the Great Depression
inflation as high as 22%
interest rates as high as 20%
23 bear markets
the Great Financial Crisis (during which it remained profitable)
U.S. Bank is Morningstar’s “lowest risk” regional bank recommendation with the lowest risk of a bank run.
Why?
“U.S. Bancorp is the largest non-GSIB in the U.S. and has been one of the most profitable regional banks we cover. Few domestic competitors can match its operating efficiency and returns on equity over the past 15 years.” – Morningstar
U.S. Bank is the fifth-largest bank in America and the largest regional bank with almost $600 billion in assets.
It’s the largest traditional bank that does almost everything outside of investment banking, including:
mortgage
refinance
auto
boat and RV loans
credit lines
credit card services
merchant, bank
checking and savings accounts
debit cards
online and mobile banking
ATM processing
mortgage banking
insurance, brokerage, and leasing services.
U.S. Bank has $525 billion in deposits, 48% of which are insured by the FDIC.
SVB had 93% uninsured deposits
Signature Bank was 89%
First Republic 67%
36% consumer and business banking.
27% payment services.
19% corporate and commercial banking.
18% wealth management.
What about unreleased bond losses on its “hold to maturity” bond portfolio? $11 billion as of March 13, or 25% of its equity.
Even if USB had to sell all of its bonds and realize the loss, it would remain solvent.
unlike JPM or BAC, and Citi
USB is rated A to AA by four credit rating agencies.
It currently has $53 billion in cash, and regional banks are seeing deposits return in the last week ($6 billion).
The stability of its long-term deposits is AA-rated, on par with the likes of JPM and BAC.
“The negative outlook reflects our view that USB’s acquisition of MUFG Union Bank’s core regional bank franchise heightens integration and operational risks. The acquisition is an $8 billion cash and stock transaction that increases USB’s loans and deposits by 20% and 21%, respectively, to $355 billion and $527 billion. It is the biggest acquisition USB has made since the financial crisis and should close in the first half of 2022, pending regulatory approval.” – S&P
In 2021 USB bought Union Bank growing its assets by 20%. It was a complex deal, and so far, execution has been going well.
USB’s credit ratings are on par or stronger than America’s strongest banks, with a 0.29% to 0.66% 30-year bankruptcy risk, according to Moody’s, S&P, Fitch, and DBRS (Canada’s biggest rating agency).
How can we tell?
Because after a short spike in its efficiency ratio (non-interest cost/revenue), the bank’s superior economies of scale are expected to bring the efficiency ratio down to 53% in 2025.
“The company’s balance sheet is sound, its capital investment decisions are exemplary, and its capital return strategy is appropriate.” – Morningstar
Morningstar and rating agencies consider USB one of the best-run banks in the country.
CEO Andy Cecere has been with the bank since 1985.
38 years with USB bank
Chief Financial Officer from 2007 to 2015 (including during the Great Recession)
Chief Operating Officer 2015 to 2017
CEO since 2017
Its management is among the elite of US banking, with conservative banking standards on par with Canadian banks.
“U.S. Bancorp… came through the 2008-09 global financial crisis without realizing a loss in any quarter…
We believe he did an admirable job with strategic acquisitions (such as buying trust segments from Bank of America and others in the U.S. and now from Deutsche Bank and the Quintillion acquisition to begin growth in Europe) and growth initiatives over the years, helping the bank to expand key businesses such as payments, trust, and the capital markets loan group.
With Cecere in charge, the bank has continued to control expenses while still investing in technology and efficiency initiatives. The conservative underwriting culture is also still in place.” – Morningstar
The inverted yield curve is squeezing bank net interest margins as customers move money from low-rate checking to higher-yielding accounts.
USB’s NIM is proving more resilient thanks to a unique mix of businesses. As a result of higher rates and the Union Bank deal, its net interest income is expected to remain robust and almost double from 2021 to 2025.
The bottom line is if USB fails, I’ll eat my hat. This bank should not have crashed 20% in the last three weeks.
Reason Two: One Of The Best Growth Profiles In The Industry
USB is trading as if its fundamentals are collapsing. Here is what’s actually going on.
Metric | 2022 Growth | 2023 Growth Consensus (recession year) | 2024 Growth Consensus | 2025 Growth Consensus |
Sales | 26% (Union bank acquisition) | 4% | 2% | 7% |
Dividend | 10% | 4% (Official) | 4% | 11% |
Earnings | -28% | 29% | 13% | 13% |
Book Value | -12% | 10% | 12% | 10% |
(Source: FAST Graphs, FactSet)
Does this seem like a failing bank? How about this?
Analysts expect USB to grow at 13% annually long term, one of the fastest-growing large banks in the US.
Analyst margins of error on USB tend to be plus or minus 10%, and within a reasonable 20% margin of error, it grew as expected 92% of the time in the last 11 years.
Investment Strategy | Yield | LT Consensus Growth | LT Consensus Total Return Potential | Long-Term Risk-Adjusted Expected Return |
U.S. Bancorp | 5.5% | 13.0% | 18.5% | 13.0% |
ZEUS Income Growth (My family hedge fund) | 4.3% | 9.9% | 14.2% | 9.9% |
Schwab US Dividend Equity ETF | 3.8% | 10.2% | 14.0% | 9.8% |
Vanguard Dividend Appreciation ETF | 2.0% | 11.3% | 13.3% | 9.3% |
Nasdaq | 0.8% | 10.9% | 11.7% | 8.2% |
Dividend Aristocrats | 1.9% | 8.5% | 10.4% | 7.3% |
S&P 500 | 1.7% | 8.5% | 10.2% | 7.1% |
REITs | 4.0% | 6.1% | 10.1% | 7.1% |
60/40 Retirement Portfolio | 2.1% | 5.1% | 7.2% | 5.0% |
(Source: DK Research Terminal, FactSet, Morningstar)
USB’s risk-adjusted expected returns are 13%, far superior to almost any long-term investment opportunity such as the S&P, aristocrats, or Nasdaq.
Total Returns Since 1985
Since 1985 USB has beaten the market by a modest 1%, including this current bear market that has left it almost 45% undervalued.
11.5% annual return (62X return) vs 11% S&P (51X return)
JPM 10.3% annual return
Citigroup 4.1% return
It’s beaten the big banks and with far less volatility to boot.
USB’s average rolling returns have been 13% to 15% per year for the last 37 years, superior to big banks, the S&P, and even the Nasdaq (13.5% returns).
But you don’t have to wait decades for USB to make you rich. Just take a look at what this deep value Super SWAN bank offers today.
2025 Consensus Total Return Potential
2029 Consensus Total Return Potential
If USB grows as expected and returns to historical fair value of 13.6X earnings, it could deliver 135% total returns within the next three years and 317% within the next six years.
Think these numbers are overly optimistic? Consider USB’s historical rallies off bear market lows.
USB Best Rallies Off Bear Market Lows
98% within one year
410% within three years (72% annually)
804% within five years (55% annually)
1248% within seven years (45% annually)
1908% within ten years (35% annually)
2791% within 15 years (25% annually)
Today, USB is a screaming buy.
Reason Three: A Wonderful Company At A Flabbergastingly Great Price
For two decades, tens of millions of income investors have consistently paid between 13.1 and 13.7X earnings for USB.
Metric | Historical Fair Value Multiples (all Years) | 2022 | 2023 | 2024 | 2025 | 12-Month Forward Fair Value |
5-Year Average Yield | 3.20% | $58.75 | $60.00 | $60.00 | $70.00 | |
PE | 13.60 | $50.18 | $65.96 | $72.08 | $81.60 | |
Average | $54.13 | $62.84 | $65.49 | $75.36 | $63.55 | |
Current Price | $35.06 | |||||
Discount To Fair Value | 35.23% | 44.21% | 46.46% | 53.47% | 44.83% | |
Upside To Fair Value (including dividend) | 54.39% | 79.23% | 86.79% | 114.93% | 86.74% | |
2023 EPS | 2024 EPS | 2023 Weighted FFO | 2024 Weighted FFO | 12-Month Forward PE | Historical Average Fair Value Forward PE | Current Forward PE |
$4.85 | $5.30 | $3.54 | $1.43 | $4.97 | 12.8 | 7.1 |
Including the dividend yield, USB’s historical fair value is about 13X earnings, and today it trades at just 7X, pricing in -2.8% growth while actually growing at double digits.
It’s an anti-bubble blue chip with nearly 100% upside to fair value.
Rating | Margin Of Safety For Medium-Risk 12/13 Super SWAN | 2023 Fair Value Price | 2024 Fair Value Price | 12-Month Forward Fair Value |
Potentially Reasonable Buy | 0% | $62.84 | $65.49 | $63.55 |
Potentially Good Buy | 10% | $56.56 | $58.94 | $57.20 |
Potentially Strong Buy | 20% | $50.27 | $52.39 | $50.84 |
Potentially Very Strong Buy | 30% | $39.59 | $45.84 | $44.49 |
Potentially Ultra-Value Buy | 40% | $37.70 | $39.29 | $38.13 |
Currently | $35.06 | 44.21% | 46.46% | 44.83% |
Upside To Fair Value (Including Dividends) | 84.71% | 92.26% | 86.74% |
USB is a potentially table-pounding, Buffett-style “fat pitch” buy for anyone comfortable with its risk profile.
Risk Profile: Why U.S. Bancorp Isn’t Right For Everyone
There are no risk-free companies, and no company is right for everyone. You have to be comfortable with the fundamental risk profile.
U.S. Bancorp Risk Summary
“We assign our U.S. regional banks an Uncertainty Rating of Medium. U.S. Bancorp has a history of making smart acquisitions and securing strategic positions in attractive markets. Given the competence of management and the bank’s history, we view risks from future acquisitions as low.
We view the macroeconomic backdrop as the primary risk to the bank. U.S. Bancorp’s profitability will be materially affected by the interest rate cycle and the effects of credit and debt cycles, which are not under management’s control. In addition, the bank is subject to the Federal Reserve’s annual stress test.
From an ESG perspective, commercial banks are expected to have strong product governance. Predatory or discriminatory lending practices are examples of poor product governance, which can sometimes affect certain banks. We view most product governance and social risks as manageable and incorporate a steady level of operating expenses related to compliance and litigation in our models. Outside of the rare, headline-grabbing scandals, we don’t see social risks as having a material effect on our valuation. Banks also lend to certain sectors that can come under more scrutiny, like gun manufacturers or energy, for example. Commercial banks don’t have a large environmental footprint, and governance practices align with most companies.” – Morningstar
USB’s Risk Profile Includes
economic cyclicality risk (63% EPS decline in the GFC and 26% in the Pandemic)
regulatory risk (capital requirements and Fed approval of buybacks and dividends)
interest rate risk (affects net interest income)
M&A execution risk (strong history of smart acquisitions)
worker retention risk (tightest job market in 54 years)
How do we quantify, monitor, and track such a complex risk profile? By doing what big institutions do.
Long-Term Risk Management Analysis: How Large Institutions Measure Total Risk Management
DK uses S&P Global’s global long-term risk-management ratings for our risk rating.
S&P has spent over 20 years perfecting their risk model
which is based on over 30 major risk categories, over 130 subcategories, and 1,000 individual metrics
50% of metrics are industry specific
this risk rating has been included in every credit rating for decades
The DK risk rating is based on the global percentile of a company’s risk management compared to 8,000 S&P-rated companies covering 90% of the world’s market cap.
USB Scores 59th Percentile On Global Long-Term Risk Management
S&P’s risk management scores factor in things like:
supply chain management
crisis management
cyber-security
privacy protection
efficiency
R&D efficiency
innovation management
labor relations
talent retention
worker training/skills improvement
customer relationship management
climate strategy adaptation
corporate governance
brand management
USB’s Long-Term Risk Management Is The 279th Best In The Master List (44th Percentile In The Master List)
Classification | S&P LT Risk-Management Global Percentile | Risk-Management Interpretation | Risk-Management Rating |
BTI, ILMN, SIEGY, SPGI, WM, CI, CSCO, WMB, SAP, CL | 100 | Exceptional (Top 80 companies in the world) | Very Low Risk |
Strong ESG Stocks | 86 | Very Good | Very Low Risk |
Foreign Dividend Stocks | 77 | Good, Bordering On Very Good | Low Risk |
Ultra SWANs | 74 | Good | Low Risk |
Dividend Aristocrats | 67 | Above-Average (Bordering On Good) | Low Risk |
Low Volatility Stocks | 65 | Above-Average | Low Risk |
Master List average | 61 | Above-Average | Low Risk |
Dividend Kings | 60 | Above-Average | Low Risk |
U.S. Bancorp | 59 | Average, Bordering On Above-Average | Medium Risk (bordering on low risk) |
Hyper-Growth stocks | 59 | Average, Bordering On Above-Average | Medium Risk |
Dividend Champions | 55 | Average | Medium Risk |
Monthly Dividend Stocks | 41 | Average | Medium Risk |
(Source: DK Research Terminal)
USB’s risk-management consensus is in the bottom 44% of the world’s highest quality companies and similar to that of such other blue-chips as
Polaris (PII) Super SWAN dividend champion
Sysco (SYY) Ultra SWAN dividend aristocrat
Genuine Parts Company (GPC) Super SWAN dividend king
Essex Property Trust (ESS) Ultra SWAN dividend aristocrat
Pepsi (PEP) Ultra SWAN dividend king
The bottom line is that all companies have risks, and USB is average, bordering on above-average, at managing theirs, according to S&P.
How We Monitor USB’s Risk Profile
28 analysts
four credit rating agencies
32 experts who collectively know this business better than anyone other than management
“When the facts change, I change my mind. What do you do, sir?”
– John Maynard Keynes
There are no sacred cows at iREIT or Dividend Kings. Wherever the fundamentals lead, we always follow. That’s the essence of disciplined financial science, the math behind retiring rich and staying rich in retirement.
Bottom Line: U.S. Bancorp Is A 5.5% Table-Pounding Buy
Let me be clear: I’m not calling the bottom in USB (I’m not a market-timer).
Even Super SWANs can fall hard and fast in a bear market.
Fundamentals are all that determine safety and quality, and my recommendations.
over 30+ years, 97% of stock returns are a function of pure fundamentals, not luck
in the short term; luck is 25X as powerful as fundamentals
in the long term, fundamentals are 33X as powerful as luck
While I can’t predict the market in the short term, here’s what I can tell you about USB.
the largest regional bank in America
one of the highest-quality banks in America
impeccable management team
A to AA-rated balance sheet
very safe 5.5% yield growing at 6% through 2028
13% risk-adjusted long-term return potential versus 10.2% S&P
historically 45% undervalued
7.1X earnings vs 13X historical
317% consensus return potential over the next six years, 25% annually, 6X more than the S&P 500
3X better risk-adjusted expected returns than the S&P 500 over the next five years
3X better income over the next five years than the S&P 500
If you want to profit from the market’s knee-jerk overreaction to the banking crisis, consider buying USB today.
If you want an A-rated bank with a battle-tested management team, USB is as good as they come.
And if you want to lock in a very safe 5.5% yield and the potential to quadruple your money in six years, then USB is just what the doctor ordered.
Author’s note: Brad Thomas is a Wall Street writer, which means he’s not always right with his predictions or recommendations. Since that also applies to his grammar, please excuse any typos you may find. Also, this article is free: Written and distributed only to assist in research while providing a forum for second-level thinking.
Source: seekingalpha.com
FAQs
U.S. Bancorp: 5.5% Yielding Buffett Style Table-Pounding Buy (USB)? ›
USB is trading at 7X earnings, a 45% historical discount, and offers a 5.5% very safe yield and nearly 100% upside to fair value. It could deliver 135% returns within three years, and 317% within six years. Long-term 13% risk-adjusted returns make this Buffett bank a table-pounding buy.
Is USB stock a good buy? ›According to 19 analysts, the average rating for USB stock is "Buy." The 12-month stock price forecast is $53.41, which is an increase of 74.20% from the latest price.
What is the P E ratio of USB? ›Price-To-Earnings vs Peers: USB is expensive based on its Price-To-Earnings Ratio (7.9x) compared to the peer average (7.8x).
Is USB a regional bank? ›USB is one of the largest regional banks in the U.S., as the firm is the nation's fifth-largest bank overall.
What is the intrinsic value of USB? ›As of today (2023-05-23), U.S. Bancorp's Intrinsic Value: Projected FCF is $87.62. The stock price of U.S. Bancorp is $32.01.
Is USB dividend safe? ›Furthermore, USB's dividend looks safe with a 50% payout ratio. The company has paid a dividend for 20 consecutive years, and it has increased its annual payout for 12 years in a row and counting.
What is the future of USB? ›There's a new, super-fast, version of USB 4 on the horizon and you won't even have to buy a brand new cable to take advantage of it. The USB Promoter Group announced that the next-gen USB Version 2.0 standard is “pending release” and will double the bandwidth of existing USB 4 connectors, from 40 Gbps to up to 80 Gbps.
What is a high transfer rate for USB? ›| Standard | Also Known As | Max. Data Transfer Speed |
|---|---|---|
| USB 1.1 | Full Speed USB | 12 Mbps |
| USB 2.0 | Hi-Speed USB | 480 Mbps |
| USB 3.2 Gen 1 | USB 3.0 USB 3.1 Gen 1 SuperSpeed | 5 Gbps |
| USB 3.2 Gen 2 | USB 3.1 USB 3.1 Gen 2 SuperSpeed+ SuperSpeed 10Gbps | 10 Gbps |
USB Maximum Power Output Standards
In general, the specifications for a USB 1.0 and 2.0 standard downstream port, delivers up to 500 mA or 0.5A. Also, with a USB 3.0, it can provide up to 900mA or 0.9A, which translates into 4.5 watts.
| Specifications | Max. Voltage | Max. Power |
|---|---|---|
| USB 2.0 | 5V | 2.5W |
| USB 3.0 / USB3.1 | 5V | 4.5W |
| USB Battery Charging (BC) 1.2 | 5V | 7.5W |
| USB-C Current Mode (non-PD) | 5V | 15W |
Is U.S. Bancorp a good long term investment? ›
Thankfully, U.S. Bancorp pays a highly generous 5.31% forward annual dividend yield. This easily beats the sector average yield of 2.114%. Finally, U.S. Bancorp offers a great value, as the company's trailing-12-month price-to-earnings (P/E) ratio of 9.69x is below U.S. Bancorp's five-year average of 12.43x.
Is USB a good long term investment? ›USB is rated A to AA by four credit rating agencies. It currently has $53 billion in cash, and regional banks are seeing deposits return in the last week ($6 billion). The stability of its long-term deposits is AA-rated, on par with the likes of JPM and BAC. In 2021 USB bought Union Bank growing its assets by 20%.
Does China own any US banks? ›ICBC's total assets are placed at an estimated $2.5 trillion. It is the first large Chinese state-owned lender to acquire control of a US bank.
What is the weakness of a USB? ›What are some Disadvantages of USB Flash Drives? Physical Vulnerabilities - While the physical form and size can be considered an advantage, it also makes the device more vulnerable to being lost, stolen, or damaged. This makes it imperative to back up the data that is being stored on a USB flash drive.
What is Tesla's current intrinsic value? ›As of 2023-05-30, the Intrinsic Value of Tesla Inc (TSLA) is 231.25 USD. This value is based on the model Discounted Cash Flows (Growth Exit 5Y). With the current market price of 201.16 USD, the upside of Tesla Inc is 15%. The range of the Intrinsic Value is 168.27 - 380.55 USD.
Will USB stock go up? ›Stock Price Forecast
The 22 analysts offering 12-month price forecasts for US Bancorp have a median target of 42.00, with a high estimate of 67.00 and a low estimate of 32.00. The median estimate represents a +40.40% increase from the last price of 29.92.
The intrinsic value of one USB stock under the Base Case scenario is 57.72 USD. Compared to the current market price of 30.81 USD, US Bancorp is Undervalued by 47%.
What is the best broker to earn dividends? ›| Platform | Type of platform | Dividend payout frequency |
|---|---|---|
| TD Ameritrade | Brokerage | Quarterly |
| M1 | Robo advisor | Quarterly |
| Fundrise Full Fundrise review | Real estate | Quarterly |
| Mainvest | Lending | Quarterly |
USB Type-C Features
USB-C is becoming a genuine replacement for previous USB standards as well as other standards like Thunderbolt and DisplayPort. If you wonder why, have a look at the USB Type-C features below: It is the fastest connector to carry data at speeds ranging from 5 Gbps to 10 Gbps.
USB A will eventually become obsolete yes. It won't be supplanted completely by USB C nor will USB C be what makes it obsolete. First in a lot of instances the smaller size doesn't have a lot of advantages and in many wireless adapter instances the smaller size is something of a negative.
How long will USB A last? ›
Memory cards and USB drives are NOT designed for long term storage. You should always backup your data on to another device. The data will normally stay valid for a period of up to 10 years if stored under normal conditions.
Who invented USB? › What size USB is best? ›16GB. If you plan on storing and transferring large data or media files, 16GB flash drives and larger are better suited for this purpose. These devices allow users to transfer thousands of music files, along with video files and more.
How long does it take to transfer 2tb of data? ›120MB/s - about 4.5 hours.
Is USB AC or DC? ›Items such as phones, tablets, power chargers, Bluetooth equipment, etcetera, usually charge on a USB (universal serial bus) that operates at 5-volt dc. The search for the proper charge cable and the power supply block or cube-style charge adapter that you plug into the ac voltage source seems never-ending.
What is D+ and D in USB? ›This pullup resistor signals the host that a device is connected, and indicates the device's operating speed. A pullup to D+ indicates full speed; a pullup to D- indicates low speed.
What is the best USB output voltage? ›What is the power output from a computer USB port? Most computer USB ports supply 5V of electricity with a maximum current of 0.5A. This amount of current is standard across the majority of computers and means the overall power output will be 2.5 Watts at best.
What is the max wattage for USB A? ›USB-A-Chargers:
60W via USB-A (100W via USB-C) 60W via USB-A (65W via USB-C) 67W (3.25A@20V) via USB-A (no USB-C)
You can use a boost converter to "boost" the voltage from 5 V to 12 V. USB ports have a current limit of 500 mA. Some specialized specifications can deliver more, but higher current limit needs to be requested from the port, so you'd need an USB interface chip.
What is the hardest investment bank to get into? ›Goldman Sachs is generally regarded as the leading investment bank in most business areas, and is the toughest Bulge Bracket investment bank to break into. Goldman has a very strong reputation within the industry and among corporations. They advise on the majority of high profile M&A deals and other major transactions.
Is U.S. Bancorp a buy or sell? ›
U.S. Bancorp has received a consensus rating of Buy. The company's average rating score is 2.61, and is based on 11 buy ratings, 7 hold ratings, and no sell ratings.
What is the most stable bank in America? ›| Bank | Assets |
|---|---|
| JP Morgan Chase | $3.2 trillion |
| Bank of America | $2.42 trillion |
| Citi | $1.77 trillion |
| Wells Fargo | $1.72 trillion |
High-quality bonds and fixed-indexed annuities are often considered the safest investments with the highest returns. However, there are many different types of bond funds and annuities, each with risks and rewards. For example, government bonds are generally more stable than corporate bonds based on past performance.
What investment has the highest potential return? ›A stock represents a share of ownership in a company. Stocks offer the biggest potential return on your investment while exposing your money to the highest level of volatility.
What is a realistic long-term investment return? ›Most investors would view an average annual rate of return of 10% or more as a good ROI for long-term investments in the stock market. However, keep in mind that this is an average. Some years will deliver lower returns -- perhaps even negative returns. Other years will generate significantly higher returns.
What country owns Bank of America? ›Bank of America is owned by Bank of America Corporation, a U.S.-based financial services holding company headquartered in Charlotte, North Carolina.
Does China own Wells Fargo and Bank of America? ›No, Bank of America isn't owned by China. BofA is an American multinational investment bank that has a partnership with China Construction Bank.
Who is U.S. Bank owned by? ›Is U.S. Bank part of U.S. Bancorp? Yes, U.S. Bancorp [NYSE: USB] is the publicly traded parent company of U.S. Bank.
Can a USB harm a computer? ›Human curiosity is what attackers exploit, after all. However, plugging an unauthenticated device into your own or work computer can be very dangerous, and USB flash drives are still a common way for attackers to infect computers with viruses and malware. They can damage your devices and data in seconds.
Why USB is better than other? ›USB allows data to travel on the average of ten times the speed of the normal parallel port. It is also faster than a serial port. The average serial port transfer rate is 150 kbps; the USB port is up to 12 Mbps. USB 2 is forty times faster, with a maximum transfer rate of 480 Mbps.
What is Coca Cola Intrinsic Value? ›
As of today (2023-05-30), Coca-Cola Co's Intrinsic Value: Projected FCF is $24.13. The stock price of Coca-Cola Co is $60.26. Therefore, Coca-Cola Co's Price-to-Intrinsic-Value-Projected-FCF of today is 2.5.
Is Tesla a buy or sell? ›The EPS Rating for Tesla stock is 93 out of 99. The market status is showing a "confirmed uptrend." Tesla stock has formed a valid base but TSLA is not a buy right now. However, Tesla stock is signaling a move above the 200-day line and 200 level and is approaching its current buy point.
What is the prediction for Tesla stock in 2025? ›Tesla Stock Prediction 2025
The Tesla stock prediction for 2025 is currently $ 413.28, assuming that Tesla shares will continue growing at the average yearly rate as they did in the last 10 years. This would represent a 113.91% increase in the TSLA stock price.
In the past, peripherals, such as mice, keyboards, printers, and other devices communicated with PCs via serial ports. However, today, most devices are connected to computers via USB ports because serial COM ports have been replaced with USB ports.
What is difference between USB and RS-232? ›Role in modern personal computers
Advantages compared to RS-232 are that USB is faster, uses lower voltages, and has connectors that are simpler to connect and use.
USB drives are commonly used for storage, data backup, and transferring files between devices. USB drives come in multiple storage capacities and different ports, each having a unique shape. Using a USB drive can differ depending on the type of computer that you want to connect to.
Will Plug Power stock go up? ›Stock Price Forecast
The 27 analysts offering 12-month price forecasts for Plug Power Inc have a median target of 15.00, with a high estimate of 78.00 and a low estimate of 7.50. The median estimate represents a +81.38% increase from the last price of 8.27.
Plug Power's analyst rating consensus is a Moderate Buy.
What will Plug Power stock be worth in 5 years? ›Plug Power Inc quote is equal to 8.845 USD at 2023-05-31. Based on our forecasts, a long-term increase is expected, the "PLUG" stock price prognosis for 2028-05-24 is 32.669 USD. With a 5-year investment, the revenue is expected to be around +269.35%. Your current $100 investment may be up to $369.35 in 2028.
How high will Qualcomm stock go? ›Stock Price Forecast
The 22 analysts offering 12-month price forecasts for Qualcomm Inc have a median target of 132.50, with a high estimate of 152.00 and a low estimate of 95.00. The median estimate represents a +14.19% increase from the last price of 116.03.
Does Amazon own Plug Power? ›
In 2017, Amazon acquired the right to buy up to 23% of Plug. At the time, Plug said it would supply Amazon with hydrogen fuel cells to be installed on forklifts in a handful of its warehouses. Shares of Amazon closed up 2.6% on Thursday.
What is Plug Power revenue forecast for 2023? ›With regards to where the company's headed, Plug Power forecasts 2023 revenue of $1.4 billion, and it's targeting revenue of $5 billion in 2026. While investors should be circumspect about the lofty projections, it's worth noting that the company achieved its annual revenue targets in 2021 and 2020.
What is the Plug Power price prediction for 2023? ›| Year | Mo | Min |
|---|---|---|
| 2023 | Nov | 7.85 |
| 2023 | Dec | 7.88 |
| 2024 | Jan | 8.27 |
| 2024 | Feb | 8.69 |
Based on short-term price targets offered by 21 analysts, the average price target for Plug Power comes to $20.07. The forecasts range from a low of $7.50 to a high of $78.00. The average price target represents an increase of 139.5% from the last closing price of $8.38.
What is the price target for Plug Power? ›| High | $78.00 |
|---|---|
| Median | $15.00 |
| Low | $7.50 |
| Average | $18.63 |
| Current Price | $8.38 |
Plug Power is forecasted to grow earnings and revenue by 68.7% and 35.7% per annum respectively. EPS is expected to grow by 68.7%. Return on equity is forecast to be 5.5% in 3 years.
Is Plug Power a good long term stock? ›Plug Power's earnings over the next few years are expected to increase by 77%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.
What was the highest price of Plug Power stock? ›Historical daily share price chart and data for Plug Power since 1999 adjusted for splits. The latest closing stock price for Plug Power as of May 30, 2023 is 8.84. The all-time high Plug Power stock closing price was 1498.00 on March 10, 2000.
Who owns the most shares of Plug Power? ›Hedge funds don't have many shares in Plug Power. The company's largest shareholder is Grove Energy Capital LLC, with ownership of 9.2%. The second and third largest shareholders are The Vanguard Group, Inc. and BlackRock, Inc., with an equal amount of shares to their name at 8.8%.
What is the target price for QCOM 2023? ›Qualcomm Stock Forecast & Predictions: 1Y Price Target $138.13 | Buy or Sell NASDAQ: QCOM 2023 | WallStreetZen.
Is Qualcomm a good buy now? ›
What Is QUALCOMM Worth? Good news, investors! QUALCOMM is still a bargain right now. According to my valuation, the intrinsic value for the stock is $136.36, but it is currently trading at US$107 on the share market, meaning that there is still an opportunity to buy now.
Is Nvidia a buy or sell? ›NVDA stock has staged a strong comeback in 2023, soaring 162%. But shares are not in a proper buy zone, and they may due for a pullback. Nvidia's latest supercomputer announcements and its earnings report have further highlighted its AI leadership. Bottom line: Nvidia stock is not a buy.