Truist Financial (TFC) closed August 25 with a 0.39% decline, trading on $0.37 billion in volume, ranking 235th in market activity. The bank recently revised its stance on U.S. small-cap stocks to “neutral” from “less attractive,” signaling a strategic pivot to balance growth opportunities while mitigating risks in volatile markets.
This adjustment aligns with Truist’s multiyear investment plan, which includes opening 100 new insights-driven branches and renovating over 300 existing ones in high-growth regions like Atlanta, Dallas, and Miami. The initiative aims to enhance services for mass-affluent clients and expand digital capabilities, with 43% of new accounts now opened through digital channels. The bank also plans to expand its Premier advisor team and restructure its virtual sales center to deepen client relationships.
Complementing these efforts, Truist launched Truist Merchant Engage, a payment solution targeting small and midsize businesses, and is prioritizing hiring in sectors such as healthcare, energy, and technology. Despite competitive pressures from regional peers, the bank’s shares have gained 12.4% over the past three months, outpacing the industry average.
A backtest of a strategy buying the top 500 high-volume stocks and holding them for one day from 2022 yielded a compound annual growth rate of 6.98%, with a maximum drawdown of 15.46% recorded during the period. The approach showed steady growth but highlighted the need for risk management amid mid-2023’s sharp decline.
Source: ainvest.com
