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6 Reasons That Make Citizens Financial (CFG) Investment Worthy
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Citizens Financial Group, Inc. (CFG - Free Report) is on track to ramp up its profitability with fresh “Tapping Our Potential (TOP) program” objectives. Further, a strong capital position is likely to help sustain its capital-deployment activities. Also, underlying strength and earnings growth prospects make Citizens Financial a solid bet now.
The company’s Zacks Consensus Estimate for current-year earnings have been revised 13.3% upward over the past 60 days. Currently, the stock carries a Zacks Rank #2 (Buy).
Citizens Financial’s shares have gained 66.7% in the past six months compared with the industry’s growth of 62.4%.
Why the Stock is Worth Buying
Impressive Initiatives: Citizens Financial’s TOP program focuses on improving its financials and revamping profitability. The company expects to achieve a pre-tax benefit of $400-$425 million by 2021 from its TOP 6 Program. It plans to continue driving efficiency improvement, and fund additional growth and innovation investments with the help of these initiatives.
Earnings per Share (EPS) Strength: Over the past three to five years, Citizens Financial witnessed EPS growth of 13.1% compared with 9.5% for the industry. Further, the company’s earnings are projected to be up 58.9% and 3.2% for 2021 and 2022, respectively. Also, its long-term (three to five years) estimated EPS growth rate of 5.7% promises rewards for investors over the long run.
The company delivered a positive earnings surprise of 111.33%, on average, over the trailing four quarters.
Impressive Balance Sheet Growth: Citizens Financial’s loans and deposits witnessed a CAGR of 3.4% and 7.6%, respectively, over a five-year period (ended 2020). Also, both loan and deposit balances are likely to get support from an improving economy.
Steady Capital-Deployment Activities: The company remains committed to enhancing shareholder value. It has been raising the quarterly common stock dividend every year since 2016, with the last hike announced in January 2020. Notably, following the approval from the Federal Reserve to buy back shares in 2020-end, the board approved a share repurchase program of up to $750 million of its common stock, beginning first-quarter 2021.
Reasonable Valuation: The stock looks undervalued right now when compared with its broader industry. It currently has a price-to-book ratio of 0.87, marginally lower than the industry average of 1.06. Also, its price-to-earnings (F1) ratio of 11.04 is below the industry’s 13.42.
Moreover, the stock has a Value Score of B. The Value Style Score condenses all valuation metrics into one actionable score, which helps investors steer clear of 'value traps' and identify stocks that are truly trading at a discount.
Favorable VGM Score: Citizens Financial has a VGM Score of B. Our research shows stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 (Strong Buy) or 2, offer the best upside potential.
Other Stocks to Consider
WSFS Financial Corporation (WSFS - Free Report) recorded an upward earnings estimate revision of 10.7% for 2021 over the past 60 days. The stock, which has surged 86.3% over the past six months, currently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Northfield Bancorp, Inc. (NFBK - Free Report) witnessed an upward earnings estimate revision of 18.6% for the current year in the past 60 days. Shares of the company have rallied 67.8% over the past six months. At present, it carries a Zacks Rank of 2.
Virtu Financial, Inc.’s (VIRT - Free Report) earnings estimates for the ongoing year have moved 32.4% north in 60 days’ time. In the past six months, the company’s shares have gained 27.3%. Currently, it sports a Zacks Rank of 1.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
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6 Reasons That Make Citizens Financial (CFG) Investment Worthy
Citizens Financial Group, Inc. (CFG - Free Report) is on track to ramp up its profitability with fresh “Tapping Our Potential (TOP) program” objectives. Further, a strong capital position is likely to help sustain its capital-deployment activities. Also, underlying strength and earnings growth prospects make Citizens Financial a solid bet now.
The company’s Zacks Consensus Estimate for current-year earnings have been revised 13.3% upward over the past 60 days. Currently, the stock carries a Zacks Rank #2 (Buy).
Citizens Financial’s shares have gained 66.7% in the past six months compared with the industry’s growth of 62.4%.
Why the Stock is Worth Buying
Impressive Initiatives: Citizens Financial’s TOP program focuses on improving its financials and revamping profitability. The company expects to achieve a pre-tax benefit of $400-$425 million by 2021 from its TOP 6 Program. It plans to continue driving efficiency improvement, and fund additional growth and innovation investments with the help of these initiatives.
Earnings per Share (EPS) Strength: Over the past three to five years, Citizens Financial witnessed EPS growth of 13.1% compared with 9.5% for the industry. Further, the company’s earnings are projected to be up 58.9% and 3.2% for 2021 and 2022, respectively. Also, its long-term (three to five years) estimated EPS growth rate of 5.7% promises rewards for investors over the long run.
The company delivered a positive earnings surprise of 111.33%, on average, over the trailing four quarters.
Impressive Balance Sheet Growth: Citizens Financial’s loans and deposits witnessed a CAGR of 3.4% and 7.6%, respectively, over a five-year period (ended 2020). Also, both loan and deposit balances are likely to get support from an improving economy.
Steady Capital-Deployment Activities: The company remains committed to enhancing shareholder value. It has been raising the quarterly common stock dividend every year since 2016, with the last hike announced in January 2020. Notably, following the approval from the Federal Reserve to buy back shares in 2020-end, the board approved a share repurchase program of up to $750 million of its common stock, beginning first-quarter 2021.
Reasonable Valuation: The stock looks undervalued right now when compared with its broader industry. It currently has a price-to-book ratio of 0.87, marginally lower than the industry average of 1.06. Also, its price-to-earnings (F1) ratio of 11.04 is below the industry’s 13.42.
Moreover, the stock has a Value Score of B. The Value Style Score condenses all valuation metrics into one actionable score, which helps investors steer clear of 'value traps' and identify stocks that are truly trading at a discount.
Favorable VGM Score: Citizens Financial has a VGM Score of B. Our research shows stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 (Strong Buy) or 2, offer the best upside potential.
Other Stocks to Consider
WSFS Financial Corporation (WSFS - Free Report) recorded an upward earnings estimate revision of 10.7% for 2021 over the past 60 days. The stock, which has surged 86.3% over the past six months, currently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Northfield Bancorp, Inc. (NFBK - Free Report) witnessed an upward earnings estimate revision of 18.6% for the current year in the past 60 days. Shares of the company have rallied 67.8% over the past six months. At present, it carries a Zacks Rank of 2.
Virtu Financial, Inc.’s (VIRT - Free Report) earnings estimates for the ongoing year have moved 32.4% north in 60 days’ time. In the past six months, the company’s shares have gained 27.3%. Currently, it sports a Zacks Rank of 1.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>