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Citigroup (C) Exceeds Market Returns: Some Facts to Consider

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The latest trading session saw Citigroup (C - Free Report) ending at $60.01, denoting a +1.47% adjustment from its last day's close. The stock outpaced the S&P 500's daily gain of 0.85%. Elsewhere, the Dow saw a downswing of 0.09%, while the tech-heavy Nasdaq appreciated by 1.53%.

Shares of the U.S. bank have depreciated by 7% over the course of the past month, underperforming the Finance sector's loss of 1.12% and the S&P 500's gain of 3.11%.

The investment community will be paying close attention to the earnings performance of Citigroup in its upcoming release. The company is slated to reveal its earnings on July 12, 2024. The company is expected to report EPS of $1.43, up 4.38% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $20.04 billion, showing a 3.12% escalation compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $5.96 per share and revenue of $80.85 billion, which would represent changes of -1.32% and +3.04%, respectively, from the prior year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Citigroup. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding 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.

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. The Zacks Consensus EPS estimate has moved 0.35% lower within the past month. Citigroup presently features a Zacks Rank of #3 (Hold).

From a valuation perspective, Citigroup is currently exchanging hands at a Forward P/E ratio of 9.93. For comparison, its industry has an average Forward P/E of 10.78, which means Citigroup is trading at a discount to the group.

Also, we should mention that C has a PEG ratio of 0.89. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Banks - Major Regional industry had an average PEG ratio of 1.71.

The Banks - Major Regional industry is part of the Finance sector. With its current Zacks Industry Rank of 56, this industry ranks in the top 23% of all industries, numbering over 250.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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