Citigroup (C) closed the latest trading day at $75.03, indicating a -0.58% change from the previous session's end. The stock's performance was behind the S&P 500's daily loss of 0.56%. Elsewhere, the Dow lost 0.58%, while the tech-heavy Nasdaq lost 0.51%.
Shares of the U.S. bank witnessed a gain of 9.57% over the previous month, beating the performance of the Finance sector with its gain of 5.39% and the S&P 500's gain of 7.37%.
Investors will be eagerly watching for the performance of Citigroup in its upcoming earnings disclosure. The company is forecasted to report an EPS of $1.71, showcasing a 12.5% upward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $20.79 billion, indicating a 3.23% growth compared to the corresponding quarter of the prior year.
C's full-year Zacks Consensus Estimates are calling for earnings of $7.32 per share and revenue of $83.72 billion. These results would represent year-over-year changes of +23.03% and +3.18%, respectively.
Investors should also pay attention to any latest changes in analyst estimates for Citigroup. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.2% higher. At present, Citigroup boasts a Zacks Rank of #3 (Hold).
From a valuation perspective, Citigroup is currently exchanging hands at a Forward P/E ratio of 10.31. This expresses a discount compared to the average Forward P/E of 15.06 of its industry.
We can additionally observe that C currently boasts a PEG ratio of 0.59. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Financial - Investment Bank industry had an average PEG ratio of 1.21.
The Financial - Investment Bank industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 195, finds itself in the bottom 22% echelons 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.
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Citigroup Inc. (C): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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