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

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In the latest trading session, Citigroup (C - Free Report) closed at $51.40, marking a +0.71% move from the previous day. The stock lagged the S&P 500's daily gain of 2.02%. At the same time, the Dow added 1.6%, and the tech-heavy Nasdaq gained 2.71%.

Coming into today, shares of the U.S. bank had lost 5.06% in the past month. In that same time, the Finance sector lost 0.85%, while the S&P 500 lost 0.39%.

Wall Street will be looking for positivity from C as it approaches its next earnings report date. The company is expected to report EPS of $0.80, down 59.6% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $17.24 billion, down 7.17% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.22 per share and revenue of $74.50 billion. These totals would mark changes of -57.52% and +0.29%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for C. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

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. The Zacks Consensus EPS estimate remained stagnant within the past month. C is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, C is currently trading at a Forward P/E ratio of 15.86. This valuation marks a premium compared to its industry's average Forward P/E of 14.21.

It is also worth noting that C currently has a PEG ratio of 1.51. 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. C's industry had an average PEG ratio of 2.24 as of yesterday's close.

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 12% 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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