Yahoo Finance Citigroup (C) Dips More Than Broader Markets: What You Should Know
Citigroup (C) closed at $52.61 in the latest trading session, marking a -1.76% move from the prior day. This move lagged the S&P 500's daily loss of 1.29%. Meanwhile, the Dow lost 0.86%, and the Nasdaq, a tech-heavy index, lost 0.46%.
Coming into today, shares of the U.S. bank had gained 1.83% in the past month. In that same time, the Finance sector gained 11.45%, while the S&P 500 gained 11.99%.
Investors will be hoping for strength from Citigroup as it approaches its next earnings release. On that day, Citigroup is projected to report earnings of $1.59 per share, which would represent a year-over-year decline of 26.05%. Our most recent consensus estimate is calling for quarterly revenue of $18.48 billion, up 7.72% from the year-ago period.
C's full-year Zacks Consensus Estimates are calling for earnings of $7.25 per share and revenue of $75.17 billion. These results would represent year-over-year changes of -28.5% and +5.92%, respectively.
Investors should also note any recent changes to analyst estimates for Citigroup. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 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 moved 1.13% higher. Citigroup is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note Citigroup's current valuation metrics, including its Forward P/E ratio of 7.39. Its industry sports an average Forward P/E of 10.8, so we one might conclude that Citigroup is trading at a discount comparatively.
Meanwhile, C's PEG ratio is currently 0.66. 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 1.39 at yesterday's closing price.
The Banks - Major Regional industry is part of the Finance sector. This group has a Zacks Industry Rank of 88, putting it in the top 35% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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