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Citigroup (C) Gains But Lags Market: What You Should Know

Citigroup (C) closed at $63.03 in the latest trading session, marking a +0.9% move from the prior day. The stock lagged the S&P 500's daily gain of 1.32%. Meanwhile, the Dow gained 1.38%, and the Nasdaq, a tech-heavy index, added 1.74%.

Heading into today, shares of the U.S. bank had gained 19.51% over the past month, outpacing the Finance sector's gain of 6.24% and the S&P 500's gain of 4.16% in that time.

Wall Street will be looking for positivity from C as it approaches its nex t earnings report date. This is expected to be April 12, 2019. On that day, C is projected to report earnings of $1.85 per share, which would represent year-over-year growth of 10.12%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $19.08 billion, up 1.11% from the year-ago period.

C's full-year Zacks Consensus Estimates are calling for earnings of $7.50 per share and revenue of $74.58 billion. These results would represent year-over-year changes of +12.78% and +2.37%, respectively.

Investors might also notice recent changes to analyst estimates for C. These revisions help to show the ever-changing nature of 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, 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. The Zacks Consensus EPS estimate has moved 1.2% lower within the past month. C currently has a Zacks Rank of #3 (Hold).

Digging into valuation, C currently has a Forward P/E ratio of 8.33. This valuation marks a discount compared to its industry's average Forward P/E of 10.37.

It is also worth noting that C currently has a PEG ratio of 0.78. 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 was holding an average PEG ratio of 1.2 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 185, which puts it in the bottom 28% 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.

You can find more information on all of these metrics, and much 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.


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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