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
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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.

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