U.S. Bancorp (USB) Upgraded to Buy: Here's What You Should Know

Core Viewpoint - U.S. Bancorp (USB) has received a Zacks Rank 2 (Buy) upgrade, indicating a positive earnings outlook that could positively influence its stock price [1][2]. Earnings Estimates and Revisions - The Zacks Consensus Estimate for U.S. Bancorp for the fiscal year ending December 2024 is projected at $3.89 per share, reflecting a decrease of 9.7% from the previous year's reported figure [5]. - Over the past three months, analysts have raised their earnings estimates for U.S. Bancorp by 0.9% [5]. Impact of Institutional Investors - Changes in earnings estimates are strongly correlated with stock price movements, as institutional investors utilize these estimates to determine the fair value of a company's shares [3]. - An increase in earnings estimates typically leads to higher fair value calculations, prompting institutional investors to buy or sell stocks, which subsequently affects stock prices [3]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 (Strong Buy) stocks historically generating an average annual return of +25% since 1988 [4]. - The upgrade of U.S. Bancorp to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for near-term price appreciation [7].