Citigroup (C) Stock Sinks As Market Gains: What You Should Know
Citigroup (C) closed at $75.16 in the latest trading session, marking a -1.73% move from the prior day. This change lagged the S&P 500's daily gain of 0.18%.
Heading into today, shares of the U.S. bank had lost 0.1% over the past month, lagging the Finance sector's gain of 3.14% and the S&P 500's gain of 2.43% in that time.
Wall Street will be looking for positivity from C as it approaches its next earnings report date. On that day, C is projected to report earnings of $1.98 per share, which would represent year-over-year growth of 296%. Our most recent consensus estimate is calling for quarterly revenue of $17.79 billion, down 9.97% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $9.22 per share and revenue of $71.44 billion, which would represent changes of +88.93% and -3.85%, respectively, from the prior year.
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.
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.
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 a Zacks Rank #3 (Hold).
Digging into valuation, C currently has a Forward P/E ratio of 8.29. Its industry sports an average Forward P/E of 12.01, so we one might conclude that C is trading at a discount comparatively.
Investors should also note that C has a PEG ratio of 0.37 right now. 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 1.42 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 137, which puts it in the bottom 47% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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