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Citigroup (C) Gains But Lags Market: What You Should Know

Zacks Equity Research
·3 mins read

Citigroup (C) closed the most recent trading day at $44.84, moving +0.97% from the previous trading session. This change lagged the S&P 500's 1.74% gain on the day. Meanwhile, the Dow gained 1.91%, and the Nasdaq, a tech-heavy index, added 1.88%.

Prior to today's trading, shares of the U.S. bank had lost 12.99% over the past month. This has lagged the Finance sector's loss of 1.86% and the S&P 500's loss of 1.86% in that time.

Wall Street will be looking for positivity from C as it approaches its next earnings report date. This is expected to be October 13, 2020. In that report, analysts expect C to post earnings of $0.84 per share. This would mark a year-over-year decline of 57.58%. Our most recent consensus estimate is calling for quarterly revenue of $17.15 billion, down 7.66% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.37 per share and revenue of $74.16 billion, which would represent changes of -55.54% and -0.18%, respectively, from the prior year.

Any recent changes to analyst estimates for C should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 4.92% higher. C is currently sporting a Zacks Rank of #4 (Sell).

Digging into valuation, C currently has a Forward P/E ratio of 13.17. Its industry sports an average Forward P/E of 13.6, so we one might conclude that C is trading at a discount comparatively.

Meanwhile, C's PEG ratio is currently 1.25. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Banks - Major Regional industry currently had an average PEG ratio of 2.11 as of yesterday's close.

The Banks - Major Regional industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 196, which puts it in the bottom 23% 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.

To follow C in the coming trading sessions, be sure to utilize Zacks.com.


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