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

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Citigroup (C - Free Report) closed at $72.04 in the latest trading session, marking a +1.62% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.15%.

Prior to today's trading, shares of the U.S. bank had gained 4.6% over the past month. This has outpaced the Finance sector's gain of 2.62% and the S&P 500's gain of 1.68% in that time.

Investors will be hoping for strength from C as it approaches its next earnings release. On that day, C is projected to report earnings of $1.78 per share, which would represent year-over-year growth of 27.14%. Our most recent consensus estimate is calling for quarterly revenue of $17.25 billion, down 0.3% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $9.97 per share and revenue of $71.14 billion, which would represent changes of +104.3% and -4.25%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for C. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

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. Over the past month, the Zacks Consensus EPS estimate has moved 1.07% higher. C currently has a Zacks Rank of #3 (Hold).

Digging into valuation, C currently has a Forward P/E ratio of 7.11. This valuation marks a discount compared to its industry's average Forward P/E of 10.88.

It is also worth noting that C currently has a PEG ratio of 0.89. 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 was holding an average PEG ratio of 1.21 at yesterday's closing price.

The Banks - Major Regional industry is part of the Finance sector. This group has a Zacks Industry Rank of 123, putting it in the top 49% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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