Citizens Financial Group (CFG, $29.38) was a top loser this quarter, falling -29.08%. Expect a Downtrend reversal
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.
CFG in downward trend: price may drop because broke its higher Bollinger Band on March 21, 2024
CFG broke above its upper Bollinger Band on March 21, 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 A.I.dvisor looked at 35 similar instances where the stock broke above the upper band. In of the 35 cases the stock fell afterwards. This puts the odds of success at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The 10-day RSI Indicator for CFG moved out of overbought territory on April 01, 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 Stochastic Oscillator entered the overbought zone. Expect a price pull-back in the foreseeable future.
The Momentum Indicator moved below the 0 level on April 22, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on CFG as a result. In of 92 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 CFG turned negative on April 03, 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 49 similar instances when the indicator turned negative. In of the 49 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 CFG declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
Bullish Trend Analysis
CFG moved above its 50-day moving average on April 19, 2024 date and that indicates a change from a downward trend to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where CFG advanced for three days, in of 291 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 224 cases where CFG Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Fundamental Analysis (Ratings)
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 fair valued 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 (0.732) is normal, around the industry mean (1.021). P/E Ratio (11.387) is within average values for comparable stocks, (20.003). Projected Growth (PEG Ratio) (1.647) is also within normal values, averaging (2.342). Dividend Yield (0.047) settles around the average of (0.061) among similar stocks. P/S Ratio (2.066) is also within normal values, averaging (2.967).
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. CFG’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued 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 Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 77, placing this stock slightly better than average.
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General Information
a regional bank
Industry RegionalBanks