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Citigroup (C) Dips More Than Broader Markets: What You Should Know

Zacks Equity Research

Citigroup (C) closed the most recent trading day at $69.13, moving -0.36% from the previous trading session. This change lagged the S&P 500's 0.24% loss on the day. Elsewhere, the Dow lost 0.3%, while the tech-heavy Nasdaq lost 0.58%.

Coming into today, shares of the U.S. bank had gained 11.26% in the past month. In that same time, the Finance sector gained 6.44%, while the S&P 500 gained 4.96%.

C will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.97, up 13.22% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $18.59 billion, up 1.07% from the year-ago period.

C's full-year Zacks Consensus Estimates are calling for earnings of $7.61 per share and revenue of $74 billion. These results would represent year-over-year changes of +14.44% and +1.57%, respectively.

Investors should also note any recent changes to analyst estimates for C. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.25% lower. C is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, C is currently trading at a Forward P/E ratio of 9.12. For comparison, its industry has an average Forward P/E of 11.46, which means C is trading at a discount to the group.

It is also worth noting that C currently has a PEG ratio of 0.75. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Banks - Major Regional stocks are, on average, holding a PEG ratio of 1.44 based on yesterday's closing prices.

The Banks - Major Regional industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 164, which puts it in the bottom 36% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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