Citigroup (C) Dips More Than Broader Markets: What You Should Know
Citigroup (C) closed at $71.58 in the latest trading session, marking a -1.97% move from the prior day. This change lagged the S&P 500's daily loss of 0.09%. At the same time, the Dow added 0.3%, and the tech-heavy Nasdaq lost 0.6%.
Prior to today's trading, shares of the U.S. bank had gained 8.32% over the past month. This has outpaced the Finance sector's gain of 5.2% and the S&P 500's gain of 4.45% in that time.
Investors will be hoping for strength from C as it approaches its next earnings release, which is expected to be April 15, 2021. In that report, analysts expect C to post earnings of $2.06 per share. This would mark year-over-year growth of 94.34%. Meanwhile, our latest consensus estimate is calling for revenue of $18.03 billion, down 13.01% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $6.86 per share and revenue of $69.96 billion, which would represent changes of +40.57% and -5.84%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for C. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 2.96% higher within the past month. C is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that C has a Forward P/E ratio of 10.64 right now. This valuation marks a discount compared to its industry's average Forward P/E of 14.
We can also see that C currently has a PEG ratio of 1.31. 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 1.82 based on yesterday's closing prices.
The Banks - Major Regional industry is part of the Finance sector. This group has a Zacks Industry Rank of 84, putting it in the top 33% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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