PNC Stock Nabs Fresh All-Time High Ahead of Earnings

The equity is up over 79% year-over-year

Oct 13, 2021 at 11:49 AM
facebook twitter linkedin

The shares of PNC Financial Services Group, Inc. (NYSE: PNC) are down 0.7% at $201.80 at last check, cooling down from a recent Oct. 11, all-time high of $204.93. This record comes just a few days ahead of the security's third-quarter earnings report, which is due out before the open on Friday, Oct. 15. Below, we will diver deeper into the stock's technical performance and previous post-earnings activity. 

The 20-day moving average has been guiding the shares higher over the last couple of weeks, after PNC Financial Services stock bounced off the $181 level in late September. The security is now contending with a ceiling at the $205 mark, while boasting a 79.1% year-over-year lead.

PNC 20 Day

The equity has a generally negative history of post-earnings reactions. Over the past two years, PNC finished five of these eight next-day sessions lower, including a hefty 6% slip in April of 2020. Options traders are pricing in a 3.4% swing for the stock this time, which is higher than the 2.7% move the security averaged after its last eight reports, regardless of direction. 

A shift in the options pits could create additional tailwinds for PNC Financial Services stock. This is per the equity's 50-day put/call volume ratio at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which stands higher than 96% of readings in its annual range. This means long puts  have been getting picked up at a faster-than-usual pace over the last two months.

From a fundamental point of view, PNC Financial Services stock is an average pick. The equity is trading at a price-earnings ratio of 15.30, which is standard for financial names. However, PNC has a forward price-earnings ratio of 14.37, meaning it is expected to see an increase in earnings. Its revenues have increased only 6% since 2017, though, and net income is up just 10%. Overall, PNC Financial Services stock offers little growth opportunity at its current valuation, but remains a safe long-term dividend play.


Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 



Special Offers from Schaeffer's Trading Partners