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

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In the latest trading session, Citigroup (C - Free Report) closed at $71.13, marking a -0.6% move from the previous day. This change lagged the S&P 500's daily gain of 0.45%. Meanwhile, the Dow gained 0.29%, and the Nasdaq, a tech-heavy index, added 0.75%.

Coming into today, shares of the U.S. bank had gained 5.42% in the past month. In that same time, the Finance sector gained 3.37%, while the S&P 500 gained 3.84%.

C will be looking to display strength as it nears its next earnings release, which is expected to be July 15, 2019. On that day, C is projected to report earnings of $1.81 per share, which would represent year-over-year growth of 11.73%. Our most recent consensus estimate is calling for quarterly revenue of $18.52 billion, up 0.27% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.55 per share and revenue of $74.07 billion. These totals would mark changes of +13.53% and +1.67%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for C. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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 0.63% lower. C is currently a Zacks Rank #4 (Sell).

Valuation is also important, so investors should note that C has a Forward P/E ratio of 9.47 right now. This represents a discount compared to its industry's average Forward P/E of 11.11.

We can also see that C currently has a PEG ratio of 0.78. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Banks - Major Regional industry currently had an average PEG ratio of 1.38 as of yesterday's close.

The Banks - Major Regional industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 233, which puts it in the bottom 9% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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