TFC - Truist Financial Charts A Recovery Path After 43% Stock Decline In 2023 Since Its February Peak: Analysis | Benzinga
After a challenging 2023, Truist Financial (NYSE:TFC) is implementing significant changes that could boost its stock performance.
According to a report by Barron’s, the banking mini-crisis in March significantly affected Truist. The company’s stock has dropped by 43% since its February 2023 peak, a decline more significant than the 34% recorded by the SPDR S&P Regional Banking exchange-traded fund (KRE).
However, Truist has now recognized that it needs to improve its operations. It plans to cut costs by selling or closing underperforming businesses and reducing its workforce.
These measures, combined with growth in its fee-based businesses like insurance, could potentially boost its sales, margins, and earnings growth. Truist’s valuation is currently near the bottom of the banking sector, and its substantial dividend is seen as attractive for investors waiting for a turnaround.
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