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

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Citigroup (C - Free Report) closed at $79.08 in the latest trading session, marking a -0.29% move from the prior day. This change lagged the S&P 500's daily gain of 0.02%.

Prior to today's trading, shares of the U.S. bank had gained 5.56% over the past month. This has outpaced the Finance sector's gain of 2.14% and the S&P 500's gain of 0.04% in that time.

C will be looking to display strength as it nears its next earnings release. On that day, C is projected to report earnings of $1.98 per share, which would represent year-over-year growth of 296%. Meanwhile, our latest consensus estimate is calling for revenue of $17.79 billion, down 9.97% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.22 per share and revenue of $71.44 billion. These totals would mark changes of +88.93% and -3.85%, respectively, from last year.

Any recent changes to analyst estimates for C should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 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 has moved 0.11% lower within the past month. C is currently a Zacks Rank #3 (Hold).

Digging into valuation, C currently has a Forward P/E ratio of 8.6. Its industry sports an average Forward P/E of 12.41, so we one might conclude that C is trading at a discount comparatively.

Meanwhile, C's PEG ratio is currently 0.38. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Banks - Major Regional industry currently had an average PEG ratio of 1.47 as of yesterday's close.

The Banks - Major Regional industry is part of the Finance sector. This group has a Zacks Industry Rank of 124, putting it in the top 49% 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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