PNC Financial Services Stock Outlook: Is Wall Street Bullish or Bearish?

Pittsburgh, Pennsylvania-based The PNC Financial Services Group, Inc. (PNC) operates as a diversified financial services company. With a market cap of $83.4 billion, the company provides regional banking, wholesale banking, and asset management services nationally and in the company's primary regional markets.

Shares of PNC have outperformed the broader market considerably over the past year. PNC has gained 65.1% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 31.3%. In 2024, PNC stock is up 37.2%, surpassing the SPX’s 25.5% rise on a YTD basis. 

Zooming in further, PNC’s outperformance is also apparent compared to the iShares U.S. Regional Banks ETF (IAT). The exchange-traded fund has gained about 58.5% over the past year. Moreover, PNC’s returns on a YTD basis outshine the ETF’s 36% gains over the same time frame.

PNC has shown outperformance due to increased fee income and higher loan balance. The bank has partnered with GTreasury to integrate its banking solution, PINACLE Connect, with GTreasury’s platform for more efficient operations. Additionally, its collaboration with Plaid allows PNC customers to securely share financial data with preferred applications. PNC is investing $500 million to open over 100 new branches and renovate 200 existing locations, with plans to invest a total of $1.5 billion in new branches and renovations by 2028. Moreover, the recent Federal Reserve rate cut is expected to boost PNC’s net interest income growth.

On Oct. 15, PNC shares closed up more than 2% after reporting its Q3 results. Its EPS of $3.49 surpassed consensus estimates of $3.29. The company’s revenue was $5.43 billion, surpassing analyst estimates of $5.37 billion.

For the current fiscal year, ending in December, analysts expect PNC’s EPS to decline 4.6% to $13.45 on a diluted basis. The company’s earnings surprise history is impressive. It beat the consensus estimate in each of the last four quarters.

Among the 21 analysts covering PNC stock, the consensus is a “Moderate Buy.” That’s based on 11 “Strong Buy” ratings, one “Moderate Buy,” seven “Holds,” and two “Moderate Sells.” 

The configuration has been fairly stable over the past three months. 

On Nov. 25, Citigroup Inc. (C) analyst Keith Horowitz kept a “Buy” rating and raised the price target on PNC to $235, implying a potential upside of 10.6% from current levels. However, PNC currently trades above its mean price target of $205.50. 

On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.