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Citigroup (C) Stock Moves -0.05%: What You Should Know

Zacks Equity Research
Navient (NAVI) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.

Citigroup (C) closed at $63.76 in the latest trading session, marking a -0.05% move from the prior day. This change was narrower than the S&P 500's daily loss of 0.69%. Elsewhere, the Dow lost 0.87%, while the tech-heavy Nasdaq lost 0.79%.

Coming into today, shares of the U.S. bank had lost 9.77% in the past month. In that same time, the Finance sector lost 3.89%, while the S&P 500 lost 4.53%.

Investors will be hoping for strength from C as it approaches its next earnings release. In that report, analysts expect C to post earnings of $1.86 per share. This would mark year-over-year growth of 14.81%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $18.70 billion, up 1.24% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.60 per share and revenue of $74.08 billion. These totals would mark changes of +14.29% and +1.69%, 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 remained stagnant. C is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, C is currently trading at a Forward P/E ratio of 8.39. This valuation marks a discount compared to its industry's average Forward P/E of 10.69.

Also, we should mention that C has a PEG ratio of 0.69. 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 1.33 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 99, putting it in the top 39% 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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