Shares of The PNC Financial Services Group, Inc (PNC) have been strong performers lately, with the stock up 3.4% over the past month. The stock hit a new 52-week high of $220.54 in the previous session. The PNC Financial Services Group has gained 4.8% since the start of the year compared to the 19% move for the Zacks Finance sector and the 41.4% return for the Zacks Financial - Investment Bank industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on October 15, 2025, The PNC Financial Services Group reported EPS of $4.35 versus consensus estimate of $4.05 while it beat the consensus revenue estimate by 1.92%.
For the current fiscal year, The PNC Financial Services Group is expected to post earnings of $17.94 per share on $23.07 in revenues. Meanwhile, for the next fiscal year, the company is expected to earn $19.48 per share on $24.94 in revenues. This represents a year-over-year change of 12.24% and 8.13%, respectively.
Valuation Metrics
The PNC Financial Services Group may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
The PNC Financial Services Group has a Value Score of B. The stock's Growth and Momentum Scores are D and A, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 12.2X current fiscal year EPS estimates, which is not in-line with the peer industry average of 16.3X. On a trailing cash flow basis, the stock currently trades at 14X versus its peer group's average of 15X. Additionally, the stock has a PEG ratio of 0.93. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, The PNC Financial Services Group currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if The PNC Financial Services Group meets the list of requirements. Thus, it seems as though The PNC Financial Services Group shares could have a bit more room to run in the near term.
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The PNC Financial Services Group, Inc (PNC): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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