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Citigroup (C) Dips More Than Broader Markets: What You Should Know

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Citigroup (C - Free Report) closed at $70 in the latest trading session, marking a -0.64% move from the prior day. This move lagged the S&P 500's daily loss of 0.16%.

Heading into today, shares of the U.S. bank had lost 0.94% over the past month, outpacing the Finance sector's loss of 1.27% and lagging the S&P 500's gain of 0.46% in that time.

Wall Street will be looking for positivity from C as it approaches its next earnings report date. 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.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.97 per share and revenue of $71.14 billion. These totals would mark changes of +104.3% and -4.25%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for C. These revisions help to show the ever-changing nature of near-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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, C is holding a Forward P/E ratio of 7.07. This valuation marks a discount compared to its industry's average Forward P/E of 10.99.

It is also worth noting that C currently has a PEG ratio of 0.88. 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. Banks - Major Regional stocks are, on average, holding a PEG ratio of 1.24 based on yesterday's closing prices.

The Banks - Major Regional industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 121, which puts it in the top 48% 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.

To follow C in the coming trading sessions, be sure to utilize Zacks.com.


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