Citigroup (C) Outperforms Stock Market Gains: What You Need to Know

Citigroup (C) recently closed at $46.59, marking a 1.79% increase from the previous day. This change outpaced the S&P 500 Index’s daily gain of 0.73%. Elsewhere, the Dow gained 0.31% and the tech-heavy Nasdaq gained 0.01%.

Heading into today, US bank shares have lost 6.63% over the past month, lagging the Financial sector’s loss of 1.41% and the S&P 500 Index’s gain of 0.09% in that time.

Wall Street will be watching for positive news from Citigroup as it approaches its next earnings report date. This is expected to be January 13, 2023. The company is expected to report EPS of $1.28, representing a decline of 12.33% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $17.92 billion, up 5.28% from the year-ago period.

For the full year, our Zacks Consensus Estimates suggest that analysts are expecting earnings of $7.10 per share and revenue of $75.13 billion. These totals would represent changes of -29.98% and +5.86%, respectively, compared to last year.

Investors should also note any recent changes to Citigroup analyst estimates. These changes help highlight the ever-changing 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 prospects.

Research indicates that these estimate changes are directly correlated with near-term stock price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. Past Over 30 days, our consensus EPS projection moved up 0.08%. Citigroup is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note Citigroup’s current valuation multiples, including its Forward P/E ratio of 6.44. This represents a discount compared to the industry’s average Forward P/E of 10.29.

Investors should also note that C currently has a PEG ratio of 0.67. The PEG ratio is similar to the commonly used P/E ratio, but this metric also takes into account the company’s expected earnings growth rate. Banks – a major regional industry currently had an average PEG ratio of 1.28 as of yesterday’s close.

Banks – the main regional industry is part of the financial sector. This group has a Zacks Industry Rank of 84, putting it in the top 34% 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 industries that receive a top 50% rating outperform the bottom half by a factor of 2 to 1.

Find more information on all of these metrics and much more on Zacks.com.

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