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

Zacks Equity Research

Citigroup (C) closed at $65.97 in the latest trading session, marking a -0.56% move from the prior day. This change lagged the S&P 500's daily gain of 0.09%. Elsewhere, the Dow gained 0.26%, while the tech-heavy Nasdaq lost 0.17%.

Prior to today's trading, shares of the U.S. bank had lost 0.6% over the past month. This has lagged the Finance sector's gain of 2.59% and the S&P 500's gain of 4.92% in that time.

Investors will be hoping for strength from C as it approaches its next earnings release. The company is expected to report EPS of $1.98, up 13.79% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $18.59 billion, up 1.07% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $7.64 per share and revenue of $74 billion, which would represent changes of +14.89% and +1.58%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for C. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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.

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. Over the past month, the Zacks Consensus EPS estimate has moved 0.01% higher. C is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, C currently has a Forward P/E ratio of 8.68. For comparison, its industry has an average Forward P/E of 10.75, which means C is trading at a discount to the group.

Meanwhile, C's PEG ratio is currently 0.71. 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. The Banks - Major Regional industry currently had an average PEG ratio of 1.32 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 219, which puts it in the bottom 15% 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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