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Citigroup (C) Moves 6.0% Higher: Will This Strength Last?

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Citigroup (C - Free Report) shares ended the last trading session 6% higher at $47.40. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 12.3% loss over the past four weeks.

Yesterday, the U.S. consumer inflation for February was reported at 6%, slightly lower than January’s 6.4%. This and bank failures stemming from higher rates affecting the financial health of U.S. regional banks have likely increased investors’ confidence that the Federal Reserve may go slow with its hikes in the upcoming March meeting. After the sudden collapse of SVB Financial and Signature Bank, broader markets and bank stocks rebounded as investors’ sentiments settled down, supported by reassuring moves undertaken by government agencies. This drove the Citigroup’s stock higher.

This U.S. bank is expected to post quarterly earnings of $1.68 per share in its upcoming report, which represents a year-over-year change of -16.8%. Revenues are expected to be $19.82 billion, up 3.3% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Citigroup, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on C going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Citigroup belongs to the Zacks Banks - Major Regional industry. Another stock from the same industry, JPMorgan Chase & Co. (JPM - Free Report) , closed the last trading session 2.6% higher at $134.62. Over the past month, JPM has returned -7.9%.

JPMorgan Chase & Co.'s consensus EPS estimate for the upcoming report has changed +0.1% over the past month to $3.44. Compared to the company's year-ago EPS, this represents a change of +30.8%. JPMorgan Chase & Co. currently boasts a Zacks Rank of #3 (Hold).


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