Citigroup (C) Dips More Than Broader Markets: What You Should Know
In the latest trading session, Citigroup (C) closed at $60.73, marking a -0.8% move from the previous day. This change lagged the S&P 500's daily loss of 0.46%. At the same time, the Dow lost 0.13%, and the tech-heavy Nasdaq lost 0.63%.
Prior to today's trading, shares of the U.S. bank had lost 4.52% over the past month. This has lagged the Finance sector's loss of 1.89% and the S&P 500's gain of 1.08% in that time.
Wall Street will be looking for positivity from C as it approaches its next earnings report date. This is expected to be April 15, 2019. On that day, C is projected to report earnings of $1.81 per share, which would represent year-over-year growth of 7.74%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $18.80 billion, down 0.4% from the year-ago period.
C's full-year Zacks Consensus Estimates are calling for earnings of $7.45 per share and revenue of $74.39 billion. These results would represent year-over-year changes of +12.03% and +2.11%, respectively.
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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 0.19% lower within the past month. C is currently a Zacks Rank #3 (Hold).
Digging into valuation, C currently has a Forward P/E ratio of 8.21. This valuation marks a discount compared to its industry's average Forward P/E of 10.13.
Meanwhile, C's PEG ratio is currently 0.77. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Banks - Major Regional industry currently had an average PEG ratio of 1.18 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 75, which puts it in the top 30% 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.
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