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Are Investors Undervaluing Citigroup (C) Right Now?
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company to watch right now is Citigroup (C - Free Report) . C is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 7.32, which compares to its industry's average of 12.37. Over the past year, C's Forward P/E has been as high as 10.48 and as low as 7.32, with a median of 8.55.
C is also sporting a PEG ratio of 0.70. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. C's industry currently sports an average PEG of 1.41. Over the last 12 months, C's PEG has been as high as 0.90 and as low as 0.61, with a median of 0.75.
We should also highlight that C has a P/B ratio of 0.80. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. C's current P/B looks attractive when compared to its industry's average P/B of 1.72. Over the past year, C's P/B has been as high as 1.02 and as low as 0.77, with a median of 0.89.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. C has a P/S ratio of 1.29. This compares to its industry's average P/S of 2.06.
Finally, we should also recognize that C has a P/CF ratio of 6.01. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. C's current P/CF looks attractive when compared to its industry's average P/CF of 12.17. Over the past year, C's P/CF has been as high as 7.92 and as low as 6.01, with a median of 7.22.
These are only a few of the key metrics included in Citigroup's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, C looks like an impressive value stock at the moment.
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Are Investors Undervaluing Citigroup (C) Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company to watch right now is Citigroup (C - Free Report) . C is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 7.32, which compares to its industry's average of 12.37. Over the past year, C's Forward P/E has been as high as 10.48 and as low as 7.32, with a median of 8.55.
C is also sporting a PEG ratio of 0.70. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. C's industry currently sports an average PEG of 1.41. Over the last 12 months, C's PEG has been as high as 0.90 and as low as 0.61, with a median of 0.75.
We should also highlight that C has a P/B ratio of 0.80. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. C's current P/B looks attractive when compared to its industry's average P/B of 1.72. Over the past year, C's P/B has been as high as 1.02 and as low as 0.77, with a median of 0.89.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. C has a P/S ratio of 1.29. This compares to its industry's average P/S of 2.06.
Finally, we should also recognize that C has a P/CF ratio of 6.01. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. C's current P/CF looks attractive when compared to its industry's average P/CF of 12.17. Over the past year, C's P/CF has been as high as 7.92 and as low as 6.01, with a median of 7.22.
These are only a few of the key metrics included in Citigroup's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, C looks like an impressive value stock at the moment.