Returns Breakdown
0.0037
Return On Tangible Assets
0.0036
Return On Assets
0.0077
Return On Capital Employed
| Return On Tangible Assets | 0.003658 | |
| Return On Capital Employed | 0.007715 | |
| Return On Assets | 0.003621 | |
| Return On Equity | 0.0427 |
Will holding Citigroup (USA Stocks:C) be justified in July 2024?
 | By Rifka Kats | Macroaxis Story |
Citigroup has a beta of 1.2633, indicating it's expected to outperform the market when it rises. Conversely, if the market declines, Citigroup is likely to underperform. The beta indicator reveals how Citigroup's movements align with the broader market and its relative volatility or risk. In essence, if Citigroup closely mirrors the market, it doesn't significantly add to portfolio risk, but neither does it boost expected returns.
Main Ideas
As we approach July 2024, Citigroup (USA Stocks:C) presents an intriguing investment opportunity. With a Wall Street target price of $67.16, the stock is currently undervalued, trading below this target at a 200-day moving average of $52.44. This discrepancy suggests potential for significant capital appreciation. Furthermore, the company's EPS estimate for the current year stands at $5.76, indicating robust profitability. However, investors should also consider the company's mean deviation of 1.11 and standard deviation of 1.39, which signal a moderate level of volatility. Despite this, the compelling valuation and strong earnings outlook make Citigroup a stock to watch in the coming months.Macroaxis uses a strict editorial review process to publish stories and blog posts. Our publishers support our company and may receive a small commission when the partner links or references are utilized. Commissions do not affect the opinions or evaluations of our editorial team. The information our editors and media partners deliver is confidential and licensed for your sole use as a Macroaxis user. We reserve all rights to the content of this article, and therefore copying or distributing this story in whole or in part is strictly prohibited.
Reviewed by Michael Smolkin
Every cloud has a silver lining, and Citigroup (USA Stocks:C) might just be that silver lining for savvy investors in July 2024. Despite a daily balance of power at -0.68 and a price action indicator of -0.12, Citigroup's typical day price stands at $59.86, hovering close to its 52-week high of $64.98. The bank's PEG ratio of 0.92 indicates potential for growth, while a payout ratio of 0.4046 suggests a decent return on investment. With a market valuation of $59.99B and a real value of $54.9B, the company shows promise. Analysts seem to agree, with six buys and an estimated target price value of $49.48, although the range varies from a low estimate of $45.03 to a high of $54.92. The short ratio stands at 2.23, with 26M shares short the prior month, representing 1.49% of the available stock. As a member of the diversified banks category, Citigroup offers a potential opportunity for those looking to invest in the domestic primary market. Currently, Citigroup's Enterprise Value is anticipated to rise significantly, according to recent years' reports. The Price To Sales Ratio for this year is projected to increase to 1.61, while the Ptb Ratio is expected to drop to 0.46. This article aims to analyze Citigroup's potential for July and determine if the stock is reasonably priced for the upcoming month.
There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as Citigroup. Regardless of method or technology, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.
Predictive Modules for Citigroup
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Citigroup's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
How important is Citigroup's Liquidity
Citigroup financial leverage refers to using borrowed capital as a funding source to finance Citigroup ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Citigroup financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Citigroup's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Citigroup's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Citigroup's total debt and its cash.
Citigroup Gross Profit
Citigroup Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Citigroup previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Citigroup Gross Profit growth over the last 10 years. Please check Citigroup's gross profit and other fundamental indicators for more details.
Is Citigroup valued correctly by the market?
Citigroup has relatively low volatility with skewness of -0.13 and kurtosis of -0.15. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Citigroup's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Citigroup's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.
As Warren Buffet famously said, be fearful when others are greedy and greedy when others are fearful. Citigroup (C) is looking like a compelling investment opportunity for July 2024. Despite a modest five-year return of 3.01%, the bank's fundamentals remain strong with a net asset value of $2.42 trillion and a healthy operating margin of 0.27%. The company's payout ratio of 40.46% indicates a commitment to returning capital to shareholders. Moreover, with a price to earnings ratio of just 6.50X and a price to book value of 0.61X, the stock appears undervalued, offering potential upside for discerning investors..
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This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Rifka Kats do not own shares of Citigroup. Please refer to our Terms of Use for any information regarding our disclosure principles.