Core Viewpoint - The article compares U.S. Bancorp (USB) and Fifth Third Bancorp (FITB) to determine which stock is more attractive to value investors [1] Group 1: Zacks Rank and Earnings Outlook - U.S. Bancorp has a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, while Fifth Third Bancorp has a Zacks Rank of 3 (Hold) [3] - The Zacks Rank favors stocks with positive revisions to earnings estimates, suggesting that USB has an improving earnings outlook [3][7] Group 2: Valuation Metrics - U.S. Bancorp has a forward P/E ratio of 11.12, while Fifth Third Bancorp has a forward P/E of 12.27, indicating USB may be undervalued [5] - The PEG ratio for USB is 1.80, compared to FITB's PEG ratio of 1.93, suggesting USB has a better growth-to-price ratio [5] - U.S. Bancorp's P/B ratio is 1.44, while Fifth Third Bancorp's P/B ratio is 1.61, further supporting USB's valuation attractiveness [6] - These metrics contribute to USB's Value grade of B and FITB's Value grade of C, indicating USB is the superior value option [6][7]
USB vs. FITB: Which Stock Is the Better Value Option?