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

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In the latest market close, Citigroup (C - Free Report) reached $55.36, with a -1.02% movement compared to the previous day. This change lagged the S&P 500's daily loss of 0.38%. On the other hand, the Dow registered a loss of 0.16%, and the technology-centric Nasdaq decreased by 0.13%.

Heading into today, shares of the U.S. bank had gained 4.21% over the past month, outpacing the Finance sector's gain of 3.85% and lagging the S&P 500's gain of 4.74% in that time.

The investment community will be paying close attention to the earnings performance of Citigroup in its upcoming release. The company is forecasted to report an EPS of $1.53, showcasing a 17.74% downward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $20.51 billion, down 4.39% from the year-ago period.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $5.94 per share and a revenue of $80 billion, indicating changes of -1.66% and +1.96%, respectively, from the former year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Citigroup. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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.

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. Within the past 30 days, our consensus EPS projection has moved 0.18% higher. Currently, Citigroup is carrying a Zacks Rank of #3 (Hold).

In terms of valuation, Citigroup is currently trading at a Forward P/E ratio of 9.42. This represents a discount compared to its industry's average Forward P/E of 10.54.

We can additionally observe that C currently boasts a PEG ratio of 1.53. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Banks - Major Regional industry currently had an average PEG ratio of 1.52 as of yesterday's close.

The Banks - Major Regional industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 36, placing it within the top 15% of over 250 industries.

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.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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