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Valued at a market cap of $134 billion, Citigroup Inc. (C) is a diversified financial service holding company that provides various financial products and services to consumers, corporations, governments, and institutions. The New York-based company provides a range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, trade and securities services, and wealth management.
Companies worth $10 billion or more are generally described as “large-cap” stocks, and Citigroup fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size, stability, and influence in the banking industry. The investment banking company has around 200 million customer accounts in more than 160 countries and jurisdictions.
Shares of C are trading slightly below their 52-week high of $71.19, which they hit on Nov. 25. The financial sector giant has gained 14.5% over the past three months, outperforming the broader Nasdaq Composite’s ($NASX) 9.7% gain over the same time frame.
Moreover, in the longer term, C’s stock is up 54.9% on a YTD basis, outpacing NASX’s 18% gains. Shares of C have rallied 37.8% over the past 52 weeks, outperforming NASX’s 28% returns over the same time frame.
To confirm its bullish trend, C has been trading above its 200-day moving average since mid-September and has remained above its 50-day moving average since late September.
On Oct. 15, shares of C fell 5.1% after its Q3 earnings release despite delivering a better-than-expected performance. Its EPS of $1.51 outpaced the Wall Street estimates of $1.34 per share, while its revenue of $20.32 billion surpassed the consensus estimates of $19.91 billion.
However, a 7.4% decline in EPS due to the higher cost of credit and an increase in the allowance for credit losses might have dampened investor confidence and led to its downward price movement.
However, C has lagged behind its rival, JPMorgan Chase & Co. (JPM), which has rallied 46.8% on a YTD basis and 61.8% over the past 52 weeks.
As Citigroup outperformed the broader market over the past year, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from the 19 analysts covering the stock, and the mean price target of $75.81 suggests a modest 7% premium to its current levels.
