Back to top

Image: Bigstock

Citigroup (C) Exceeds Market Returns: Some Facts to Consider

Read MoreHide Full Article

In the latest trading session, Citigroup (C - Free Report) closed at $60.78, marking a +1.2% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.25%. Elsewhere, the Dow saw an upswing of 0.15%, while the tech-heavy Nasdaq appreciated by 0.03%.

The the stock of U.S. bank has fallen by 4.91% in the past month, lagging the Finance sector's loss of 2.3% and the S&P 500's gain of 3.34%.

Investors will be eagerly watching for the performance of Citigroup in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on July 12, 2024. The company is expected to report EPS of $1.43, up 4.38% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $20.04 billion, up 3.12% from the prior-year quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $5.96 per share and revenue of $80.85 billion, which would represent changes of -1.32% and +3.04%, respectively, from the prior year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Citigroup. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.35% lower. As of now, Citigroup holds a Zacks Rank of #3 (Hold).

In terms of valuation, Citigroup is currently trading at a Forward P/E ratio of 10.08. This signifies a discount in comparison to the average Forward P/E of 10.67 for its industry.

Meanwhile, C's PEG ratio is currently 0.9. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Banks - Major Regional stocks are, on average, holding a PEG ratio of 1.75 based on yesterday's closing prices.

The Banks - Major Regional industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 58, positioning it in the top 24% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow C in the coming trading sessions, be sure to utilize Zacks.com.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Citigroup Inc. (C) - free report >>

Published in