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Citizens Financial Group, Inc. (CFG), with a market cap of $19 billion, is one of the largest retail bank holding companies in the U.S. Headquartered in Providence, Rhode Island, Citizens Finance Group offers a comprehensive range of retail and commercial banking products and services to individuals, institutions, and companies. It operates an extensive network of branches and ATMs across the New England, Mid-Atlantic, and Midwest regions.
Companies worth $10 billion or more are generally described as "large-cap stocks," and Citizens Financial Group fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size and influence in the regional banks industry.
CFG benefits from a well-established brand and a vast network of over 1,000 branches spanning 14 states, giving it a competitive edge in accessibility and customer service. Its broad product range, covering retail, commercial, capital markets, and wealth services, enables CFG to meet diverse customer needs while reducing reliance on any one product line for revenue.
Despite its strengths, the stock currently trades 5.3% below its 52-week high of $43.96, which it touched on Jul. 26. CFG stock has soared 20.1% over the past three months, surpassing the S&P 500 Index’s ($SPX) 4.2% gains during the same time frame.
CFG's prospects shine brighter over the long term. Shares of the regional bank have surged 25.7% on a YTD basis and jumped 51.3% over the past 52 weeks, outperforming SPX’s 19.6% rise on a YTD basis and 29.5% gain over the past year.
Despite recent volatility, CFG has been trading above its 50-day moving average since early July and has remained above its 200-day moving average since early December, indicating a bullish trend.
Citizens Financial Group’s robust price performance has been fueled by strong fee income, disciplined cost management, and strategic growth in areas like bond underwriting and loan syndication. Additionally, its Private Bank initiatives, solid capital position, steady deposit growth, and stable credit performance have all contributed to its impressive solid momentum.
On Sept. 10, CFG shares declined over 3% following remarks from JPMorgan Chase President Pinto, who suggested analysts are overly optimistic about next year’s expenses and net interest income, which placed additional pressure on bank stocks across the sector.
On a positive note, CFG shares closed up more than 3% on Jul. 17 after reporting its Q2 earnings results. While its EPS of $0.78 missed Wall Street’s expectations of $0.79, its adjusted revenue of $1.96 billion topped forecasts of $1.95 billion.
Citizens Financial Group’s top competitor, U.S. Bancorp (USB), has significantly underperformed CFG over the past year. Shares of USB surged 6.3% in 2024 and rose 33.7% over the past year, sharply contrasting CFG's robust double-digit returns over the same time frame.
Analysts remain moderately bullish about CFG’s prospects. The stock has a consensus “Moderate Buy” rating from the 21 analysts covering it, and its mean price target of $44.61 suggests a premium of 7.1% from current price levels.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
