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

Zacks Equity Research
IGT (IGT) delivered earnings and revenue surprises of -47.83% and -1.92%, respectively, for the quarter ended March 2019. Do the numbers hold clues to what lies ahead for the stock?

In the latest trading session, Citigroup (C) closed at $52.06, marking a +0.44% move from the previous day. This move lagged the S&P 500's daily gain of 0.85%. Meanwhile, the Dow gained 1.15%, and the Nasdaq, a tech-heavy index, added 0.77%.

Heading into today, shares of the U.S. bank had lost 20.14% over the past month, lagging the Finance sector's loss of 9.41% and the S&P 500's loss of 9.35% in that time.

C will be looking to display strength as it nears its next earnings release, which is expected to be January 14, 2019. In that report, analysts expect C to post earnings of $1.66 per share. This would mark year-over-year growth of 29.69%. Our most recent consensus estimate is calling for quarterly revenue of $17.95 billion, up 4.05% from the year-ago period.

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 such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. The Zacks Consensus EPS estimate has moved 0.52% lower within the past month. C is currently sporting a Zacks Rank of #4 (Sell).

Digging into valuation, C currently has a Forward P/E ratio of 7.79. Its industry sports an average Forward P/E of 10.04, so we one might conclude that C is trading at a discount comparatively.

We can also see that C currently has a PEG ratio of 0.68. 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 1.05 at yesterday's closing price.

The Banks - Major Regional industry is part of the Finance sector. This group has a Zacks Industry Rank of 198, putting it in the bottom 23% 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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