Is PNC Financial Services Stock Underperforming the Nasdaq?

The PNC Financial Services Group, Inc. (PNC), headquartered in Pittsburgh, Pennsylvania, is a leading diversified financial institution operating across the U.S. It provides banking, lending, wealth management, and asset management services to individuals, businesses, and institutions, serving millions of customers. The company has a market capitalization of $86.41 billion, making it a “large-cap” stock. 

Its shares reached an all-time high of $243.94 on Feb. 6, but are down 12.7% from that level. Stabilizing interest rates, solid quarterly earnings, alongside strong loan growth and deposit increases, have boosted investor confidence. Over the past three months, PNC’s stock has gained 7.6%, while the broader Nasdaq Composite ($NASX) index is down 4% over the same period. 

Over the past 52 weeks, PNC’s stock has gained 12.4%, while the Nasdaq Composite index is up 22.7%. However, this year, the stock has increased 2.1%, while the broader index has dropped by 3.1%. The stock has traded above its 200-day moving average since late November and is currently below its 50-day moving average since late February. 

On Jan. 16, PNC reported its fourth-quarter earnings for fiscal 2025. On the same day, the stock surged 3.8% intraday. The company’s overall revenue increased 9.1% year-over-year (YOY) to a record $6.07 billion. Its net interest income for the quarter was $3.73 billion, up 5.9% from the prior-year period, driven by lower funding costs, loan growth, and the continued benefit of fixed-rate asset repricing. 

In January, PNC also closed its acquisition of FirstBank Holding Company (including the FirstBank banking subsidiary), which significantly expands the company’s presence across high-growth communities in Colorado and Arizona. Wall Street analysts expect its EPS to increase 16.8% YOY to $4.10 (on a diluted basis) for the current quarter. 

We compare PNC’s performance with that of another regional bank stock, Truist Financial Corporation (TFC), which has gained 8.5% over the past 52 weeks, but only marginally year-to-date. Therefore, PNC has been the clear outperformer over these periods.

Wall Street analysts are moderately bullish on PNC’s stock. The stock has a consensus rating of “Moderate Buy” from the 24 analysts covering it. The mean price target of $250.48 implies a 17.6% upside from current levels. The Street-high price target of $284 indicates a 33.3% upside.