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Citigroup (C) Flat As Market Sinks: What You Should Know

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In the latest trading session, Citigroup (C - Free Report) closed at $57.06, marking no change from the previous day. This change was narrower than the S&P 500's daily loss of 0.16%. Meanwhile, the Dow lost 0.58%, and the Nasdaq, a tech-heavy index, added 0.48%.

Prior to today's trading, shares of the U.S. bank had gained 36.25% over the past month. This has outpaced the Finance sector's gain of 10.49% and the S&P 500's gain of 5.06% in that time.

Investors will be hoping for strength from C as it approaches its next earnings release. The company is expected to report EPS of $1.23, down 35.26% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $16.43 billion, down 10.58% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.22 per share and revenue of $74.23 billion, which would represent changes of -44.33% and -0.08%, respectively, from the prior year.

It is also important to note the 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.72% higher. C is holding a Zacks Rank of #4 (Sell) right now.

Looking at its valuation, C is holding a Forward P/E ratio of 13.54. For comparison, its industry has an average Forward P/E of 14.91, which means C is trading at a discount to the group.

Meanwhile, C's PEG ratio is currently 1.29. 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. Banks - Major Regional stocks are, on average, holding a PEG ratio of 2.06 based on yesterday's closing prices.

The Banks - Major Regional industry is part of the Finance sector. This group has a Zacks Industry Rank of 126, putting it in the top 50% 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.

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