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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 $62.52 in the latest trading session, marking a -0.38% move from the prior day. This move lagged the S&P 500's daily gain of 1.17%. Meanwhile, the Dow gained 1.87%, and the Nasdaq, a tech-heavy index, added 0.62%.

Prior to today's trading, shares of the U.S. bank had lost 6.31% over the past month. This has lagged the Finance sector's loss of 5.58% and the S&P 500's loss of 2.46% in that time.

Investors will be hoping for strength from Citigroup as it approaches its next earnings release. On that day, Citigroup is projected to report earnings of $1.87 per share, which would represent a year-over-year decline of 9.66%. Our most recent consensus estimate is calling for quarterly revenue of $17.26 billion, up 4.58% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $10.50 per share and revenue of $71.21 billion. These totals would mark changes of +115.16% and -4.16%, respectively, from last year.

Any recent changes to analyst estimates for Citigroup should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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 0.02% lower within the past month. Citigroup is currently a Zacks Rank #3 (Hold).

Valuation is also important, so investors should note that Citigroup has a Forward P/E ratio of 5.98 right now. This represents a discount compared to its industry's average Forward P/E of 10.8.

Also, we should mention that C has a PEG ratio of 0.47. 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 1.3 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 102, putting it in the top 41% 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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