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Citigroup (C) Suffers a Larger Drop Than the General Market: Key Insights

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The most recent trading session ended with Citigroup (C - Free Report) standing at $61.79, reflecting a -0.56% shift from the previouse trading day's closing. This move lagged the S&P 500's daily loss of 0.32%. Elsewhere, the Dow saw an upswing of 0.16%, while the tech-heavy Nasdaq depreciated by 0.85%.

The the stock of U.S. bank has fallen by 4.66% in the past month, lagging the Finance sector's gain of 2.55% and the S&P 500's gain of 1.52%.

The investment community will be closely monitoring the performance of Citigroup in its forthcoming earnings report. The company is scheduled to release its earnings on October 15, 2024. It is anticipated that the company will report an EPS of $1.40, marking a 7.89% fall compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $19.92 billion, down 1.09% from the year-ago period.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $5.82 per share and revenue of $80.67 billion. These totals would mark changes of -3.64% and +2.81%, respectively, from last year.

Investors should also pay attention to any latest changes in analyst estimates for Citigroup. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been a 0.34% fall in the Zacks Consensus EPS estimate. Currently, Citigroup is carrying a Zacks Rank of #3 (Hold).

Looking at valuation, Citigroup is presently trading at a Forward P/E ratio of 10.69. This signifies a discount in comparison to the average Forward P/E of 12.14 for its industry.

It is also worth noting that C currently has a PEG ratio of 0.67. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Banks - Major Regional industry was having an average PEG ratio of 1.49.

The Banks - Major Regional industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 42, finds itself in the top 17% echelons of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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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