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

Zacks Equity Research
·3 min read

Citigroup (C) closed the most recent trading day at $60.57, moving -0.35% from the previous trading session. This change lagged the S&P 500's daily gain of 0.35%. At the same time, the Dow added 0.23%, and the tech-heavy Nasdaq gained 0.26%.

Coming into today, shares of the U.S. bank had gained 6.52% in the past month. In that same time, the Finance sector gained 3.7%, while the S&P 500 gained 3.27%.

Investors will be hoping for strength from C as it approaches its next earnings release, which is expected to be January 15, 2021. The company is expected to report EPS of $1.27, down 33.16% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $16.51 billion, down 10.17% from the year-ago period.

C's full-year Zacks Consensus Estimates are calling for earnings of $4.27 per share and revenue of $74.30 billion. These results would represent year-over-year changes of -43.67% and +0.02%, respectively.

Any recent changes to analyst estimates for C should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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.

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 1.3% higher. C is currently a Zacks Rank #3 (Hold).

In terms of valuation, C is currently trading at a Forward P/E ratio of 14.23. This valuation marks a discount compared to its industry's average Forward P/E of 14.61.

Investors should also note that C has a PEG ratio of 1.78 right now. 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 2.03 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 103, which puts it in the top 41% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

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