Citigroup (C) Outpaces Stock Market Gains: What You Should Know
Citigroup (C) closed at $64.31 in the latest trading session, marking a +1.31% move from the prior day. This change outpaced the S&P 500's 1.21% gain on the day. Meanwhile, the Dow gained 0.97%, and the Nasdaq, a tech-heavy index, added 1.35%.
Coming into today, shares of the U.S. bank had lost 11.58% in the past month. In that same time, the Finance sector lost 4.97%, while the S&P 500 lost 3.6%.
C will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.98, up 13.79% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $18.59 billion, up 1.07% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.62 per share and revenue of $74 billion. These totals would mark changes of +14.59% and +1.58%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for C. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 0.06% lower. C currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, C is holding a Forward P/E ratio of 8.33. This valuation marks a discount compared to its industry's average Forward P/E of 10.69.
Also, we should mention that C has a PEG ratio of 0.68. 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 was holding an average PEG ratio of 1.28 at yesterday's closing price.
The Banks - Major Regional industry is part of the Finance sector. This group has a Zacks Industry Rank of 224, putting 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
Click to get this free report
Citigroup Inc. (C): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.