Despite underperforming the market, one Wall Street analyst believes Plug Power stock has a 16% upside, setting a price target of $4 based on the company's hydrogen production announcement. However, caution is advised as the company reported a steep loss in its recent financial results, and its inability to generate profit and organic cash flow remains a concern. The Motley Fool Stock Advisor team did not include Plug Power in their list of top stocks to buy, emphasizing the need for careful consideration before investing.
Truist Financial is facing mounting pressure from analysts and investors to reset its strategy as the company's stock price continues to decline. Critics argue that Truist has not met the expectations set when the merger between BB&T Corp. and SunTrust Banks was announced four years ago. The company's expenses have been rising instead of declining, and its revenue growth projections have been repeatedly lowered. Truist is expected to announce a shift in strategy soon, with investors calling for faster and bolder changes to improve shareholder returns. Some analysts remain optimistic, while others are urging Truist to take immediate action to address the shortcomings.
Truist Financial, a regional bank, reported a 15% decline in earnings for Q2, missing estimates, while Zions Bancorp saw a 14% drop in earnings but beat analyst forecasts. Truist's revenue rose 5.1% and it expects a 4% decline in revenue for Q3. Zions reported a 1.9% increase in revenue and saw customer deposits grow by $2 billion. Regional bank stocks have been mostly positive this week, with the SPDR S&P Regional Banking ETF surging 8.9% and 15% for the month.
Truist Financial Corp reported a Q1 profit that missed Wall Street estimates as it set aside $502 million in provisions for credit losses due to increased economic uncertainty. Average deposits in the first quarter came in at $408.5 billion, down 1.2% from the previous quarter, as customers chased higher-rate alternatives after the banking crisis in March shook faith in the industry's stability. Truist earned $1.05 per share in the first quarter ended March 31, missing estimates of $1.14 per share.
The Oakmark Fund, a value-focused fund with $15.5 billion in assets under management, has recently bought shares in Truist Financial, one of the largest regional banks in the US, and Kroger, the number-two grocer behind Walmart. The fund manager believes that Truist's reputation, relationships, and liquidity profile will allow it to weather the storm without material negative impact, while Kroger's store footprint, distribution infrastructure, technology investments, and strong brand all position the company well for a world with higher online grocery adoption. Bank earnings season has arrived, and there are concerns about how well banks have done in retaining deposits that otherwise are flowing into money-market funds, and how far the bonds they have bought have dropped in value as interest rates have climbed.
