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Citigroup (C) Outpaces Stock Market Gains: What You Should Know

Zacks Equity Research

Citigroup (C) closed at $78.76 in the latest trading session, marking a +0.32% move from the prior day. This change outpaced the S&P 500's 0.09% gain on the day. Elsewhere, the Dow gained 0.34%, while the tech-heavy Nasdaq added 0.23%.

Heading into today, shares of the U.S. bank had gained 6.24% over the past month, outpacing the Finance sector's gain of 3.15% and the S&P 500's gain of 3.81% in that time.

C will be looking to display strength as it nears its next earnings release. On that day, C is projected to report earnings of $1.84 per share, which would represent year-over-year growth of 14.29%. Meanwhile, our latest consensus estimate is calling for revenue of $17.77 billion, up 3.77% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.75 per share and revenue of $73.85 billion. These totals would mark changes of +16.54% and +1.37%, respectively, from last year.

Any recent changes to analyst estimates for C should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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 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 0.29% lower within the past month. C is currently a Zacks Rank #3 (Hold).

In terms of valuation, C is currently trading at a Forward P/E ratio of 10.14. This represents a discount compared to its industry's average Forward P/E of 12.71.

Meanwhile, C's PEG ratio is currently 0.87. 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. Banks - Major Regional stocks are, on average, holding a PEG ratio of 1.55 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 57, putting it in the top 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.

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


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