10 Best Local Bank Stocks To Invest In Now

6. Truist Financial Corporation (NYSE:TFC)

Number of Hedge Fund Holders In Q2 2024: 42

Truist Financial Corporation (NYSE:TFC) is a diversified bank that provides commercial, consumer, as well as wealth management services. This provides it with revenue streams that can end up countering each other in different economic climates. For instance, while Truist Financial Corporation (NYSE:TFC)’s general consumer customers might not fare too well when the economy is slow and inflation is rising, its wealthy customers can increase the demand for the bank’s services. This was also the case during Q2 2024, when Truist Financial Corporation (NYSE:TFC)’s non interest income (a key aspect of any bank’s hypothesis given today’s environment and expected future trends) took a massive $6.7 billion hit due to securities losses. However, Truist Financial Corporation (NYSE:TFC)’s wealth management, investment banking, deposit service charges, and other income streams helped stem the bleeding to a negative $5.2 billion for Q2 and $3.7 billion for H1 2024. Looking ahead, investors should be on the watch out for Truist Financial Corporation (NYSE:TFC)’s net interest income to gauge the direction of its stock.

Ariel Investments mentioned Truist Financial Corporation (NYSE:TFC) in its Q4 2023 investor letter. Here is what the fund said:

“After the merger of BB&T and SunTrust formed Truist in 2019, management has prioritized simplifying the organization and reducing expenses to optimize profitability. After successfully selling a portion of the insurance business, TFC is now considering selling the remaining stake. While we take no definitive view on the likelihood of a sale, we believe this would be a positive catalyst for the company. TFC could leverage the deal to strengthen its adjusted capital profile, improve margins as well as accelerate its investment in technology. Meanwhile, the company is trading at a significant discount relative to our estimate of its intrinsic value.”