Yahoo Finance How Do Analysts See Citigroup Inc. (NYSE:C) Performing In The Next 12 Months?
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Looking at Citigroup Inc.’s (NYSE:C) earnings update in December 2018, analysts seem fairly confident, with profits predicted to increase by 2.2% next year relative to the past 5-year average growth rate of -19%. With trailing-twelve-month net income at current levels of US$17b, we should see this rise to US$17b in 2020. Below is a brief commentary around Citigroup’s earnings outlook going forward, which may give you a sense of market sentiment for the company. For those interested in more of an analysis of the company, you can research its fundamentals here.
See our latest analysis for Citigroup
How is Citigroup going to perform in the near future?
The view from 24 analysts over the next three years is one of positive sentiment. Since forecasting becomes more difficult further into the future, broker analysts generally project out to around three years. To get an idea of the overall earnings growth trend for C, I’ve plotted out each year’s earnings expectations and inserted a line of best fit to determine an annual rate of growth from the slope of this line.
This results in an annual growth rate of 1.6% based on the most recent earnings level of US$17b to the final forecast of US$17b by 2022. This leads to an EPS of $9.66 in the final year of projections relative to the current EPS of $6.69. This high rate of growth of revenue squeezes margins, as analysts predict an upcoming margin contraction from the current 25% to 22% by the end of 2022.
Next Steps:
Future outlook is only one aspect when you’re building an investment case for a stock. For Citigroup, I’ve compiled three important factors you should further research:
Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
Valuation: What is Citigroup worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether Citigroup is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Citigroup? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
