Citigroup (C) Stock Sinks As Market Gains: What You Should Know
Citigroup (C) closed at $65.78 in the latest trading session, marking a -0.15% move from the prior day. This move lagged the S&P 500's daily gain of 0.82%. Meanwhile, the Dow gained 0.82%, and the Nasdaq, a tech-heavy index, added 0.64%.
Prior to today's trading, shares of the U.S. bank had lost 3.35% over the past month. This has was narrower than the Finance sector's loss of 4.06% and the S&P 500's loss of 4.58% in that time.
Wall Street will be looking for positivity from C as it approaches its next earnings report date. In that report, analysts expect C to post earnings of $1.86 per share. This would mark year-over-year growth of 14.81%. Meanwhile, our latest consensus estimate is calling for revenue of $18.70 billion, up 1.24% from the prior-year quarter.
C's full-year Zacks Consensus Estimates are calling for earnings of $7.60 per share and revenue of $74.08 billion. These results would represent year-over-year changes of +14.29% and +1.69%, respectively.
It is also important to note the recent changes to analyst estimates for C. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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 remained stagnant within the past month. C is currently sporting a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that C has a Forward P/E ratio of 8.67 right now. This valuation marks a discount compared to its industry's average Forward P/E of 10.87.
It is also worth noting that C currently has a PEG ratio of 0.71. 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 industry currently had an average PEG ratio of 1.33 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 57, which puts it in the top 23% 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.
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.