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Citigroup (C) Beats Stock Market Upswing: What Investors Need to Know

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Citigroup (C - Free Report) ended the recent trading session at $111.12, demonstrating a +1.54% change from the preceding day's closing price. The stock exceeded the S&P 500, which registered a gain of 0.68% for the day. Meanwhile, the Dow gained 1.05%, and the Nasdaq, a tech-heavy index, added 0.33%.

Coming into today, shares of the U.S. bank had gained 8.6% in the past month. In that same time, the Finance sector gained 1.58%, while the S&P 500 gained 1.8%.

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. Alongside, our most recent consensus estimate is anticipating revenue of $21.07 billion, indicating a 7.58% upward movement from the same quarter last year.

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.

Any recent changes to analyst estimates for Citigroup should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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, the Zacks Consensus EPS estimate has shifted 1.03% upward. Citigroup currently has a Zacks Rank of #3 (Hold).

With respect to valuation, Citigroup is currently being traded at a Forward P/E ratio of 14.39. This expresses a discount compared to the average Forward P/E of 17.94 of its industry.

It is also worth noting that C currently has a PEG ratio of 0.57. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Financial - Investment Bank industry was having an average PEG ratio of 1.15.

The Financial - Investment Bank industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 17, finds itself in the top 7% echelons of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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