If you had invested $1000 in PNC Financial Services Group, Inc. 10 years ago, this is what you would have now – September 28, 2021
Most investors care about how much a stock’s price changes over time. This factor can impact your investment portfolio and help you compare investment results across sectors and industries.
Fear of missing out, or FOMO, also plays a role in investing, particularly in certain tech giants as well as popular consumer-facing stocks.
What if you were in The PNC Financial Services Group, Inc (pnc – Free Report) ten years ago? It may not have been easy sticking with PNC for so long, but if so, how much would your investment be worth today?
The operations of PNC Financial Services Group, Inc
With that in mind, let’s take a look at the key business drivers behind The PNC Financial Services Group, Inc.
Founded in 1983, PNC Financial Services Group, Inc. is headquartered in Pittsburgh and provides banking services to consumers and businesses. The main subsidiary of the company is PNC Bank.
PNC Financial primarily reports on three business segments. Retail Banking provides deposit, lending, brokerage, insurance, investment management and cash management services to retail and small business customers through a network of branches, ATMs, call centers, online and mobile banking channels.
The Corporate and Institutional Banking segment provides lending, treasury management, and capital markets-related products and services to medium-sized and large corporations, government agencies, and not-for-profit organizations.
Asset Management Group offers a wide range of wealth management products and services for individuals and their families, as well as intergenerational family planning services for ultra high net worth clients. The Institutional Asset Management operating unit serves as the investment manager and trustee for corporations, non-profit organizations and retirement plans nationwide.
The “Other” category includes residual activities that do not meet the criteria for disclosure as a separate reportable business.
On June 1, 2021, PNC Financial acquired BBVA USA Bancshares Inc. and its US banking subsidiary BBVA USA. The company spent $11.5 billion in cash on the acquisition and added $82.2 billion in deposits and $60.5 billion in loans to its balance sheet.
In April 2017, PNC Financial acquired the US-based trade and seller financing business of ECN Capital Corp in a $1.1 billion cash transaction. In December 2017, the Company acquired The Trout Group, LLC, an investor relations and strategic consulting firm. PNC Financial also acquired Fortis Advisors to expand the advisory business.
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little risk. So if you invested in The PNC Financial Services Group, Inc a decade ago, you probably feel pretty good about your investment today.
According to our calculations, a $1,000 investment made in September 2011 would be worth $4,069.11 on September 28, 2021, or a gain of 306.91%, and this return excludes dividends but includes price increases.
The S&P 500, by comparison, is up 278.01% and gold prices are up 1.87% over the same period.
Looking ahead, analysts expect more upside potential for PNC.
PNC Financial stock has outperformed the industry to which it belongs over the past year. The company has an impressive earnings surprise record, with earnings beating the Zacks Consensus estimate in all four trailing quarters. Going forward, a focus on expanding middle-market lending and strengthening digital product and service offerings are likely to drive earnings growth. Given a strong balance sheet position, the implementation of inorganic growth strategies to diversify revenue streams should support performance. Strong capital deployment activity should boost confidence in the stock going forward. Nonetheless, the continued increase in expenses is likely to further impact PNC Financial’s bottom line for the foreseeable future. The net interest margin (NIM) is likely to remain under pressure in the short term due to low interest rates.
The stock is up 5.03% over the past four weeks. Additionally, no earnings estimate has fallen in the last two months compared to two higher ones for fiscal 2021; the consensus estimate has also moved up.