Pittsburgh, Pennsylvania-based The PNC Financial Services Group, Inc. (PNC) operates as a diversified financial services company. With a market cap of $69.7 billion, the company provides regional banking, wholesale banking, and asset management services nationally and in the company's primary regional markets.

Companies worth $10 billion or more are generally described as “large-cap stocks,” and PNC fits right into that category with its market cap exceeding this threshold, reflecting its substantial size, influence, and dominance in the regional banks industry. PNC’s focus on commercial banking through new markets and digital channels to improve customer relationships and banking experiences allows it to benefit from commercial financial services' complexities and offer a reliable and affordable funding basis.

Despite its notable strength, PNC slipped 19.1% from its 52-week high of $216.26, achieved on Nov. 29, 2024. Over the past three months, PNC stock declined 3.1%, underperforming the Financial Select Sector SPDR Fund’s (XLF) 1.7% gains during the same time frame. 

In the longer term, shares of PNC dipped 9.3% on a YTD basis but climbed 13.4% over the past 52 weeks, underperforming XLF’s YTD gains of 5.1% and 23.3% returns over the last year. 

To confirm the bearish trend, PNC is trading below its 200-day moving average since early March. However, the stock has been trading above its 50-day moving average since early May.

PNC's recent underperformance is due to higher expenses, increased provisions for credit losses, and a decrease in deposit balances. Concerns regarding future provisions and interest rate dynamics are influencing the stock's decline. Economic uncertainties and tariffs are contributing to market reactions and potential impacts on banking operations. Subdued economic growth may suppress loan demand, leading to lower NII growth and potential spikes in delinquency rates in consumer loan portfolios, affecting asset quality for the company.

On Apr. 15, PNC reported its Q1 results, and its shares closed down more than 2% in the following trading session. Its revenue stood at $5.5 billion, up 6% year over year. The company’s EPS of $3.51 surpassed the consensus estimates of $3.40.

In the competitive arena of regional banks, M&T Bank Corporation (MTB) has taken the lead over PNC, showing resilience with a 4.3% loss on a YTD basis and solid 22.8% gains over the past 52 weeks.

Wall Street analysts are moderately bullish on PNC’s prospects. The stock has a consensus “Moderate Buy” rating from the 23 analysts covering it, and the mean price target of $195.95 suggests a potential upside of 12.1% from current price levels.