TFC - Is Truist Financial a Buy?
2023-09-19 07:51:00 ET
It's been a challenging year for banks that have grappled with the highest interest rates we've seen in over 16 years. While higher rates can boost banks' net interest income, the pace of recent interest rate increases has left many banks ill-prepared.
Truist Financial (NYSE: TFC) has struggled this year due to higher interest rates, falling deposits, and compressing margins. In the second quarter, the seventh-largest bank in the U.S. fell short of expectations and revised its earnings forecast downward for the second consecutive quarter.
In early August, the credit ratings agency Moody's downgraded its ratings on several banks and put others on notice for a potential downgrade if things didn't improve. Truist Financial was one of the banks in the latter group. Since the start of the year, the stock has fallen over 30% and trades at a steep discount. If you're thinking of buying the stock, consider the following first.
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Is Truist Financial a Buy?