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

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In the latest trading session, Citigroup (C) closed at $47.20, marking a -1.58% move from the previous day. This change lagged the S&P 500's daily loss of 0.13%. At the same time, the Dow lost 0.15%, and the tech-heavy Nasdaq gained 0.14%.

Coming into today, shares of the U.S. bank had lost 8.96% in the past month. In that same time, the Finance sector lost 4.35%, while the S&P 500 lost 3.32%.

Investors will be hoping for strength from Citigroup as it approaches its next earnings release, which is expected to be July 15, 2022. On that day, Citigroup is projected to report earnings of $1.63 per share, which would represent a year-over-year decline of 42.61%. Meanwhile, our latest consensus estimate is calling for revenue of $18.03 billion, up 3.2% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.93 per share and revenue of $73.62 billion. These totals would mark changes of -31.66% and +3.73%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Citigroup. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.1% higher. Citigroup is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, Citigroup currently has a Forward P/E ratio of 6.92. This valuation marks a discount compared to its industry's average Forward P/E of 9.65.

Investors should also note that C has a PEG ratio of 0.62 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Banks - Major Regional was holding an average PEG ratio of 1.4 at yesterday's closing price.

The Banks - Major Regional industry is part of the Finance sector. This group has a Zacks Industry Rank of 101, putting it in the top 40% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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