Citizens Financial Group (CFG) has had a tough quarter, falling by 29.08% to $29.38 per share, making it one of the top losers in the Regional Banks Industry. However, technical analysis suggests that there may be a downtrend reversal in the near future.
A.I.dvisor analyzed 986 stocks in the Regional Banks Industry and found that 94.44% of them demonstrated a downtrend, indicating a challenging market for the banking sector. Nevertheless, A.I.dvisor identified 142 similar cases to CFG's price drop within a three-month period. In 100 out of those 142 cases, CFG's price went up during the following month, providing some historical evidence for a potential uptick in the stock's performance.
In addition, on April 13, 2023, CFG's Stochastic Oscillator moved out of oversold territory, which may indicate a bullish sign for the stock. Tickeron's A.I.dvisor examined 56 similar instances where the Stochastic Oscillator left the oversold zone and found that in 40 of the 56 cases, the stock moved higher in the following days, providing a 71% probability of a move higher.
In terms of earnings, CFG reported its Q1 2023 financial results on April 12, 2023. The bank reported earnings per share (EPS) of $1.03, beating analysts' estimates of $0.95. Furthermore, the bank's revenue for the quarter was $1.71 billion, exceeding analysts' expectations of $1.66 billion. Despite this positive news, CFG's stock price did not see any significant increase.
One reason for this could be the bank's net interest margin (NIM), which measures the difference between the interest income generated by banks and the amount of interest paid out to their lenders. CFG's NIM declined by five basis points to 2.50%, which could indicate a challenge for the bank's profitability.
While CFG had a challenging quarter, technical analysis suggests that there may be a downtrend reversal in the near future. Additionally, the bank's positive earnings results, although not reflected in its stock price, could provide a foundation for a potential upward trend. However, investors should also be aware of CFG's NIM, which may pose a challenge for the bank's profitability in the coming quarters.
The 10-day moving average for CFG crossed bullishly above the 50-day moving average on July 02, 2024. This indicates that the trend has shifted higher and could be considered a buy signal. In of 16 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a regional bank
Industry RegionalBanks