Is Citizens Financial Group Stock Outperforming the Dow?
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With a market cap of $18.4 billion, Citizens Financial Group, Inc. (CFG) operates as a bank holding company that offers a range of retail and commercial banking products and services to individuals, small businesses, middle-market companies, large corporations, and institutions. Based in Providence, Rhode Island, the company operates in two segments: Consumer Banking and Commercial Banking.
Companies valued at $10 billion or more are generally classified as “large-cap” stocks, and Citizens Financial Group fits this description perfectly. The company is a leading financial institution that helps its customers with their needs in order to offer tailored advice, ideas, and solutions.
However, the company dipped 14.7% from its 52-week high of $49.25. Over the past three months, CFG is down 4.4%, lagging behind the broader Dow Jones Industrials Average's ($DOWI) 2% decline.
In the long term, CFG has slipped over 4% on a YTD basis, compared to the DOWI's marginal decrease. However, shares of Citizens Financial Group have gained 20.6% over the past 52 weeks, outpacing the Dow Jones’ nearly 8.1% rise over the same time frame.
Since March, CFG has been trading below its 50-day and 200-day moving averages.
On Jan. 17, CFG stock rose 1.6% after its Q4 2024 earnings release due to strong results. The company’s earnings came in at $0.85 per share, beating Wall Street estimates of $0.83. Revenue reached $1.99 billion, exceeding the $1.96 billion consensus estimate. Also, the net interest income (NII) rose 3%, driven by a 10 bps rise in net interest margin (NIM) to 2.9%.
Moreover, when compared, rival Atlantic Union Bankshares Corporation (AUB) has performed weaker than CFG. AUB has slumped 15.8% YTD and edged down 6.3% over the past 52 weeks.
Despite Citizens Financial Group's outperformance relative to the Dow over the past year, analysts have a cautiously optimistic outlook. With 20 analysts covering the stock, there is a consensus rating of “Moderate Buy,” and CFG is currently trading below the mean price target of $52.42.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.