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Citigroup (C) Outpaces Stock Market Gains: What You Should Know

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In the latest trading session, Citigroup (C - Free Report) closed at $103.60, marking a +1.07% move from the previous day. The stock outperformed the S&P 500, which registered a daily gain of 0.54%. Meanwhile, the Dow gained 0.61%, and the Nasdaq, a tech-heavy index, added 0.65%.

The U.S. bank's shares have seen an increase of 2.28% over the last month, surpassing the Finance sector's gain of 0.28% and the S&P 500's loss of 0.8%.

The upcoming earnings release of Citigroup will be of great interest to investors. It is anticipated that the company will report an EPS of $1.79, marking a 33.58% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $21.07 billion, up 7.58% from the prior-year quarter.

For the full year, the Zacks Consensus Estimates project earnings of $7.6 per share and a revenue of $86.29 billion, demonstrating changes of +27.73% and +6.35%, respectively, from the preceding year.

Investors should also take note of any recent adjustments to analyst estimates for Citigroup. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 past month, there's been a 1.08% rise in the Zacks Consensus EPS estimate. Citigroup is currently a Zacks Rank #3 (Hold).

In terms of valuation, Citigroup is currently trading at a Forward P/E ratio of 13.48. This signifies a discount in comparison to the average Forward P/E of 16.7 for its industry.

We can additionally observe that C currently boasts a PEG ratio of 0.53. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Financial - Investment Bank industry currently had an average PEG ratio of 1.08 as of yesterday's close.

The Financial - Investment Bank industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 26, which puts it in the top 11% of all 250+ industries.

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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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