Citigroup (C, $50.92) posts stronger-than-expected Q2 earnings, on solid trading revenue growth
Citigroup Inc. reported its second quarter earnings that beat analysts’ expectations, on the back of trading revenues strength.
The bank’s earnings for the three months ending June came in at 50 cents per share, topping the Street consensus forecast of 29 cents per share. However, the figure is down -72.6% from the year-ago quarter.
Revenues rose +5.3% year-over-year to $19.77 billion, exceeding analysts' estimates of $19.1 billion.
Solid capital markets trading revenues added positively to the results. Fixed income surged +68% to $5.6 billion, and investment banking rose +37% to $1.8 billion.
Citigroup ‘s credit loss provision as of the end of Q2 was $26.4 billion, up from $12.5 billion at the end of the same period last year. The quarterly credit loss provision total was $7.9 billion.
Credit losses for the quarter were $2.21 billion.
According to Tickeron, C's in Downtrend: Moving Average Convergence Divergence (MACD) Histogram crosses below signal line
This is a Bearish indicator signaling C's price could decline. Traders may explore shorting the ticker or looking at put options. In 21 of 43 cases where C's MACD histogram became negative, the price fell further within the following month. The odds of a continued Downtrend are 49%.
Current price $50.92 crossed the support line at $52.35 and is trading between $52.35 support and $49.84 support lines. Throughout the month of 06/10/20 - 07/13/20, the price experienced a -7% Downtrend, while the week of 07/06/20 - 07/13/20 shows a +0.44% Uptrend.
Technical Analysis (Indicators)
Bearish Trend Analysis
The RSI Indicator appears to be shifting from an Uptrend to a Downtrend. In 19 of 41 cases where C's RSI indicator exited the overbought zone, the price fell further within the following month. The odds of a continued Downtrend are 46%.
Bullish Trend Analysis
The Stochastic Indicator suggests the ticker price trend may be in a reversal from a Downtrend to an Uptrend. 42 of 57 cases where C's Stochastic Indicator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued Uptrend are 74%.
The Momentum Indicator exceeded the 0 level on July 13, 2020. Traders may consider buying the ticker or exploring call options. In 51 of 79 cases where the ticker's Momentum Indicator exceeded 0, its price rose further within the subsequent month. The odds of a continued Uptrend are 65%.
The price moved above its 50-day Moving Average, which indicates a change from a Downtrend to an Uptrend. In 30 of 40 similar backtested cases where C's price crossed above its 50-day Moving Average, its price rose further within the subsequent month. The odds of a continued Uptrend are 75%.
The Aroon Indicator entered an Uptrend today. In 169 of 255 similar cases where C Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 66%.
Fundamental Analysis (Ratings)
Tickeron has a positive outlook on this ticker and predicts a further increase by more than 4.00% within the next month with a likelihood of 54%. During the last month, the daily ratio of advancing to declining volumes was 1.28 to 1.
The Tickeron Profit vs. Risk Rating rating for this company is 98 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. C’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 98, placing this stock worse than average.
The Tickeron SMR rating for this company is 90 (best 1 - 100 worst), indicating slightly better than average sales and a considerably profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is 79 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is 56 (best 1 - 100 worst), indicating fairly steady price growth. C’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of 17 (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (0.44) is normal, around the industry mean (2502.58). P/E Ratio (7.24) is within average values for comparable stocks, (362.72). Projected Growth (PEG Ratio) (1.10) is also within normal values, averaging (3.50). C has a moderately high Dividend Yield (2.40) as compared to the industry average of (0.54). P/S Ratio (0.85) is also within normal values, averaging (19.48).
C sees its Stochastic Oscillator ascending out of oversold territory
On December 24, 2024, the Stochastic Oscillator for C moved out of oversold territory and this could be a bullish sign for the stock. Traders may want to buy the stock or buy call options. Tickeron's A.I.dvisor looked at 61 instances where the indicator left the oversold zone. In of the 61 cases the stock moved higher in the following days. This puts the odds of a move higher at over .
Technical Analysis (Indicators)
Bullish Trend Analysis
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where C advanced for three days, in of 304 cases, the price rose further within the following month. The odds of a continued upward trend are .
C may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In of 234 cases where C Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The 10-day RSI Indicator for C moved out of overbought territory on December 11, 2024. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 35 similar instances where the indicator moved out of overbought territory. In of the 35 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Momentum Indicator moved below the 0 level on December 17, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on C as a result. In of 86 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for C turned negative on December 11, 2024. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 46 similar instances when the indicator turned negative. In of the 46 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where C declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (0.647) is normal, around the industry mean (0.958). C has a moderately high P/E Ratio (15.708) as compared to the industry average of (8.937). C's Projected Growth (PEG Ratio) (18.586) is very high in comparison to the industry average of (2.643). Dividend Yield (0.033) settles around the average of (0.054) among similar stocks. P/S Ratio (1.581) is also within normal values, averaging (2.460).
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. C’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. C’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 46, placing this stock worse than average.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
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General Information
a financial conglomerate
Industry MajorBanks