Is citigroup (c) a great stock for value investors_ – february 6, 2017 – zacks. com


Value investing is easily one of the most popular ways to find great stocks in any market environment. Hkd to usd chart After all, who wouldn’t want to find stocks that are either flying under the radar and are compelling buys, or offer up tantalizing discounts when compared to fair value?

One way to find these companies is by looking at several key metrics and financial ratios, many of which are crucial in the value stock selection process. Funny jokes for kids Let’s put Citigroup Inc. Cnn stock market futures ( C – Free Report) stock into this equation and find out if it is a good choice for value-oriented investors right now, or if investors subscribing to this methodology should look elsewhere for top picks:

A key metric that value investors always look at is the Price to Earnings Ratio, or PE for short.

Usd inr exchange rate live This shows us how much investors are willing to pay for each dollar of earnings in a given stock, and is easily one of the most popular financial ratios in the world. Hex to binary converter online The best use of the PE ratio is to compare the stock’s current PE ratio with: a) where this ratio has been in the past; b) how it compares to the average for the industry/sector; and c) how it compares to the market as a whole.

This level actually compares pretty favorably with the market at large, as the PE for the S&P 500 compares in at about 20.10. Exchange rate usd cad If we focus on the stock’s long-term PE trend, the current level puts Citigroup’s current PE ratio tad above its midpoint over the past five years, with the number having trended roughly upward over the past few months.

Further, the stock’s PE also compares favorably with the Zacks classified Banks-Major Regional sub-industry’s trailing twelve months PE ratio, which stands at 14.77. Decimal word problems 5th grade At the very least, this indicates that the stock is relatively undervalued right now, compared to its peers.

We should also point out that Citigroup has a forward PE ratio (price relative to this year’s earnings) of just 11.12, which is little lower the current level. Binary exercises So we might say that forward earnings estimates are already incorporated in the company’s current share price.

Another key metric to note is the Price/Sales ratio. Uk to usd converter This approach compares a given stock’s price to its total sales, where a lower reading is generally considered better. Stock market futures monday Some people like this metric more than other value-focused ones because it looks at sales, something that is far harder to manipulate with accounting tricks than earnings.

Right now, Citigroup has a P/S ratio of about 1.97. Future stock market cnn This is a bit lower than the S&P 500 average, which comes in at 3.01 right now. Usd cny Also, as we can see in the chart below, this is tad below the highs for this stock in particular over the past few years, suggesting some level of undervalued trading—at least compared to historical norms.

In aggregate, Citigroup currently has a Zacks Value Style Score of ‘B’, putting it into the top 40% of all stocks we cover from this look. Rose quotes shakespeare This makes Citigroup a solid choice for value investors, and some of its other key metrics make this pretty clear too.

For example, the PEG ratio for Citigroup is just 1.22, a level that is little lower than the industry average of 2.04. Dow futures exchange The PEG ratio is a modified PE ratio that takes into account the stock’s earnings growth rate.

Though Citigroup might be a good choice for value investors, there are plenty of other factors to consider before investing in this name. Binary calculator In particular, it is worth noting that the company has a Growth grade of ‘C’ and a Momentum score of ‘F’. Usa today crossword puzzle This gives Citigroup a Zacks VGM score—or its overarching fundamental grade—of ‘C’. Usd exchange rate (You can read more about the Zacks Style Scores here >>)

Meanwhile, the company’s recent earnings estimates have been mixed at best. Eur usd forward rates The current quarter has seen three estimates go higher in the past thirty days compared to one lower, while the full year estimate has seen two up and three down in the same time period.

This has had just a small impact on the consensus estimate though as the current quarter consensus estimate has witnessed no changes in the past one month, while the full year estimate has inched lower by almost 0.2%. Decimal to binary algorithm You can see the consensus estimate trend and recent price action for the stock in the chart below:

Citigroup is an inspired choice for value investors, as it is hard to beat its incredible lineup of statistics on this front. Rmb usd exchange rate Furthermore, a robust industry rank (among top 8%) instills our confidence on the stock.

However, with a Zacks Rank #3, it is hard to get too excited about this company overall. Hockey shooting drills In fact, over the past two years, the Zacks Banks-Major Regional has clearly underperformed the broader market, as you can see below:

So, value investors might want to wait for estimates and analyst sentiment to turn around in this name first, but once that happens, this stock could be a compelling pick.

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