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Citigroup (C) Dips More Than Broader Markets: What You Should Know

In the latest trading session, Citigroup (C) closed at $45.53, marking a -1.06% move from the previous day. This change lagged the S&P 500's 0.84% loss on the day. At the same time, the Dow lost 0.47%, and the tech-heavy Nasdaq lost 1.27%.

Coming into today, shares of the U.S. bank had lost 8.49% in the past month. In that same time, the Finance sector lost 0.14%, while the S&P 500 gained 0.6%.

C will be looking to display strength as it nears its next earnings release. On that day, C is projected to report earnings of $0.77 per share, which would represent a year-over-year decline of 61.11%. Meanwhile, our latest consensus estimate is calling for revenue of $17.24 billion, down 7.19% from the prior-year quarter.

C's full-year Zacks Consensus Estimates are calling for earnings of $3.12 per share and revenue of $74.46 billion. These results would represent year-over-year changes of -58.84% and +0.24%, 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. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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.

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. Within the past 30 days, our consensus EPS projection has moved 3.01% lower. C is holding a Zacks Rank of #4 (Sell) right now.

Valuation is also important, so investors should note that C has a Forward P/E ratio of 14.74 right now. This represents a premium compared to its industry's average Forward P/E of 14.43.

Meanwhile, C's PEG ratio is currently 1.4. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Banks - Major Regional was holding an average PEG ratio of 2.25 at yesterday's closing price.

The Banks - Major Regional industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 222, which puts it in the bottom 13% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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