U.S. Markets closed
  • S&P 500

    3,699.12
    +32.40 (+0.88%)
     
  • Dow 30

    30,218.26
    +248.74 (+0.83%)
     
  • Nasdaq

    12,464.23
    +87.05 (+0.70%)
     
  • Russell 2000

    1,892.45
    +43.75 (+2.37%)
     
  • Crude Oil

    46.09
    +0.45 (+0.99%)
     
  • Gold

    1,837.70
    +0.90 (+0.05%)
     
  • Silver

    24.32
    +0.18 (+0.76%)
     
  • EUR/USD

    1.2127
    -0.0022 (-0.1819%)
     
  • 10-Yr Bond

    0.9690
    +0.0490 (+5.33%)
     
  • Vix

    20.79
    -0.49 (-2.30%)
     
  • GBP/USD

    1.3438
    -0.0015 (-0.1088%)
     
  • USD/JPY

    104.1400
    +0.2800 (+0.2696%)
     
  • BTC-USD

    19,124.90
    +76.61 (+0.40%)
     
  • CMC Crypto 200

    365.19
    -14.05 (-3.71%)
     
  • FTSE 100

    6,550.23
    +59.96 (+0.92%)
     
  • Nikkei 225

    26,751.24
    -58.13 (-0.22%)
     

Citigroup (C) Gains As Market Dips: What You Should Know

Zacks Equity Research
·3 min read

Citigroup (C) closed the most recent trading day at $51.05, moving +0.63% from the previous trading session. The stock outpaced the S&P 500's daily loss of 1.16%. At the same time, the Dow lost 1.16%, and the tech-heavy Nasdaq lost 0.82%.

Heading into today, shares of the U.S. bank had gained 16.57% over the past month, outpacing the Finance sector's gain of 9.47% and the S&P 500's gain of 3.87% in that time.

Wall Street will be looking for positivity from C as it approaches its next earnings report date. In that report, analysts expect C to post earnings of $1.23 per share. This would mark a year-over-year decline of 35.26%. Meanwhile, our latest consensus estimate is calling for revenue of $16.43 billion, down 10.58% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.26 per share and revenue of $74.23 billion. These totals would mark changes of -43.8% and -0.08%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for C. 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. 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. The Zacks Consensus EPS estimate has moved 0.64% higher within the past month. C is currently a Zacks Rank #4 (Sell).

Digging into valuation, C currently has a Forward P/E ratio of 11.9. For comparison, its industry has an average Forward P/E of 13.95, which means C is trading at a discount to the group.

We can also see that C currently has a PEG ratio of 1.13. 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. C's industry had an average PEG ratio of 1.94 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 125, which puts it in the top 50% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Citigroup Inc. (C) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research