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Citigroup (C) Gains But Lags Market: What You Should Know

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Citigroup (C - Free Report) closed the most recent trading day at $76.91, moving +0.68% from the previous trading session. This change lagged the S&P 500's 0.72% gain on the day. Meanwhile, the Dow gained 0.36%, and the Nasdaq, a tech-heavy index, added 0.91%.

Heading into today, shares of the U.S. bank had gained 3.45% over the past month, outpacing the Finance sector's gain of 2.05% and the S&P 500's gain of 2.64% in that time.

Wall Street will be looking for positivity from C as it approaches its next earnings report date. In that report, analysts expect C to post earnings of $1.84 per share. This would mark year-over-year growth of 14.29%. Our most recent consensus estimate is calling for quarterly revenue of $17.77 billion, up 3.77% from the year-ago period.

C's full-year Zacks Consensus Estimates are calling for earnings of $7.74 per share and revenue of $73.85 billion. These results would represent year-over-year changes of +16.39% and +1.37%, respectively.

Any recent changes to analyst estimates for C should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. C is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that C has a Forward P/E ratio of 9.86 right now. Its industry sports an average Forward P/E of 12.54, so we one might conclude that C is trading at a discount comparatively.

Investors should also note that C has a PEG ratio of 0.85 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Banks - Major Regional was holding an average PEG ratio of 1.54 at yesterday's closing price.

The Banks - Major Regional industry is part of the Finance sector. This group has a Zacks Industry Rank of 78, putting it in the top 31% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the 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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