Citigroup (C) Dips More Than Broader Markets: What You Should Know
In the latest trading session, Citigroup (C) closed at $65.73, marking a -1.29% move from the previous day. This move lagged the S&P 500’s daily loss of 0.55%. Elsewhere, the Dow lost 0.5%, while the tech-heavy Nasdaq lost 0.42%.
Prior to today’s trading, shares of the U.S. bank had lost 9.82% over the past month. This has lagged the Finance sector’s loss of 7.26% and the S&P 500’s loss of 5.71% in that time.
Wall Street will be looking for positivity from C as it approaches its next earnings report date. This is expected to be January 15, 2019. In that report, analysts expect C to post earnings of $1.65 per share. This would mark year-over-year growth of 28.91%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $18 billion, up 4.34% from the year-ago period.
C’s full-year Zacks Consensus Estimates are calling for earnings of $6.69 per share and revenue of $73.77 billion. These results would represent year-over-year changes of +25.52% and +3.24%, respectively.
Any recent changes to analyst estimates for C should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
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 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. Within the past 30 days, our consensus EPS projection has moved 1.48% higher. C currently has a Zacks Rank of #2 (Buy).
In terms of valuation, C is currently trading at a Forward P/E ratio of 9.96. This valuation marks a discount compared to its industry’s average Forward P/E of 11.22.
It is also worth noting that C currently has a PEG ratio of 0.87. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company’s expected earnings growth rate into account. The Banks – Major Regional industry currently had an average PEG ratio of 1.15 as of yesterday’s close.
The Banks – Major Regional industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 82, which puts it in the top 32% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Citigroup Inc. (C): Free Stock Analysis Report
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