In the latest trading session, Citigroup (C) closed at $75.70, marking a +1.11% move from the previous day. This change outpaced the S&P 500's 0.75% gain on the day. At the same time, the Dow added 0.69%, and the tech-heavy Nasdaq gained 1.32%.
Coming into today, shares of the U.S. bank had gained 3.55% in the past month. In that same time, the Finance sector gained 2.08%, while the S&P 500 gained 3.42%.
C will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.84, up 14.29% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $17.77 billion, up 3.77% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.74 per share and revenue of $73.85 billion. These totals would mark changes of +16.39% and +1.37%, respectively, from last year.
Investors might also notice 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. 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.
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. Within the past 30 days, our consensus EPS projection has moved 0.41% higher. C is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that C has a Forward P/E ratio of 9.54 right now. Its industry sports an average Forward P/E of 12.21, so we one might conclude that C is trading at a discount comparatively.
Also, we should mention that C has a PEG ratio of 0.82. 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. C's industry had an average PEG ratio of 1.48 as of yesterday's close.
The Banks - Major Regional industry is part of the Finance sector. This group has a Zacks Industry Rank of 153, putting it in the bottom 40% 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.
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