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Citigroup (C) Gains But Lags Market: What You Should Know

Citigroup (C) closed at $43.40 in the latest trading session, marking a +1.9% move from the prior day. The stock lagged the S&P 500's daily gain of 1.97%. Meanwhile, the Dow gained 1.88%, and the Nasdaq, a tech-heavy index, added 0.24%.

Coming into today, shares of the U.S. bank had lost 13.22% in the past month. In that same time, the Finance sector lost 9.76%, while the S&P 500 lost 9.93%.

Investors will be hoping for strength from Citigroup as it approaches its next earnings release, which is expected to be October 14, 2022. 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%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $18.55 billion, up 8.14% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $7.34 per share and revenue of $75.45 billion, which would represent changes of -27.61% and +6.31%, respectively, from the prior year.

It is also important to note the recent changes to 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

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. The Zacks Consensus EPS estimate has moved 0.32% lower within the past month. Citigroup is currently a Zacks Rank #3 (Hold).

Digging into valuation, Citigroup currently has a Forward P/E ratio of 5.8. Its industry sports an average Forward P/E of 9.23, so we one might conclude that Citigroup is trading at a discount comparatively.

We can also see that C currently has a PEG ratio of 0.52. 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. C's industry 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 55, which puts it in the top 22% 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.

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


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