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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 $50.29, moving +1.43% from the previous trading session. The stock lagged the S&P 500's daily gain of 1.47%. At the same time, the Dow added 2.32%, and the tech-heavy Nasdaq gained 1.2%.

Coming into today, shares of the U.S. bank had gained 0.85% in the past month. In that same time, the Finance sector gained 0.41%, while the S&P 500 gained 0.74%.

Investors will be hoping for strength from C as it approaches its next earnings release, which is expected to be July 14, 2020. In that report, analysts expect C to post earnings of $0.52 per share. This would mark a year-over-year decline of 71.58%. Our most recent consensus estimate is calling for quarterly revenue of $17.62 billion, down 6.08% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.04 per share and revenue of $73.31 billion, which would represent changes of -59.89% and -1.31%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for C. These revisions help to show the ever-changing nature of 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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. Within the past 30 days, our consensus EPS projection has moved 0.07% lower. 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 16.33 right now. Its industry sports an average Forward P/E of 16.36, so we one might conclude that C is trading at a discount comparatively.

Also, we should mention that C has a PEG ratio of 1.55. 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. Banks - Major Regional stocks are, on average, holding a PEG ratio of 2.59 based on yesterday's closing prices.

The Banks - Major Regional industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 86, which puts it in the top 34% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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