Back to top

Image: Bigstock

Here's Why Citigroup (C) Fell More Than Broader Market

Read MoreHide Full Article

Citigroup (C - Free Report) ended the recent trading session at $45.08, demonstrating a -0.33% swing from the preceding day's closing price. This change lagged the S&P 500's 0.2% loss on the day. On the other hand, the Dow registered a loss of 0.16%, and the technology-centric Nasdaq decreased by 0.07%.

The the stock of U.S. bank has risen by 18.28% in the past month, leading the Finance sector's gain of 9.07% and the S&P 500's gain of 7.49%.

The upcoming earnings release of Citigroup will be of great interest to investors. The company is predicted to post an EPS of $1.15, indicating a 4.55% growth compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $19.27 billion, indicating a 7.03% growth compared to the corresponding quarter of the prior year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $6.24 per share and a revenue of $79.81 billion, signifying shifts of -12.24% and +5.93%, respectively, from the last year.

Any recent changes to analyst estimates for Citigroup should also be noted by investors. These revisions help to show the ever-changing nature of 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. 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.36% increase. Citigroup is currently sporting a Zacks Rank of #3 (Hold).

With respect to valuation, Citigroup is currently being traded at a Forward P/E ratio of 7.25. This represents a discount compared to its industry's average Forward P/E of 8.66.

Investors should also note that C has a PEG ratio of 2.34 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. C's industry had an average PEG ratio of 1.35 as of yesterday's close.

The Banks - Major Regional industry is part of the Finance sector. With its current Zacks Industry Rank of 85, this industry ranks in the top 34% of all industries, numbering over 250.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

See More Zacks Research for These Tickers

Normally $25 each - click below to receive one report FREE:

Citigroup Inc. (C) - free report >>

Published in