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).
Momentum Indicator for C turns positive, indicating new upward trend
C saw its Momentum Indicator move above the 0 level on November 21, 2024. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 85 similar instances where the indicator turned positive. In of the 85 cases, the stock moved higher in the following days. The odds of a move higher are at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Moving Average Convergence Divergence (MACD) for C just turned positive on November 06, 2024. Looking at past instances where C's MACD turned positive, the stock continued to rise in of 45 cases over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where C advanced for three days, in of 308 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 243 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 November 26, 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 36 similar instances where the indicator moved out of overbought territory. In of the 36 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 5 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
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 .
C broke above its upper Bollinger Band on November 25, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
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 Seasonality Score of (best 1 - 100 worst) indicates that the company is seriously undervalued 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.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating outstanding 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 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 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 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 48, placing this stock worse than average.
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General Information
a financial conglomerate
Industry MajorBanks