Is Citizens Financial Stock Outperforming the Nasdaq?

With a market cap of $19.1 billion, Providence, Rhode Island-based Citizens Financial Group, Inc. (CFG) is one of the largest retail bank holding companies in the United States. The company provides a wide range of retail and commercial banking products and services to individuals, small businesses, middle-market companies, and institutions.

Companies worth more than $10 billion are generally described as “large-cap” stocks, and Citizens Financial fits this criterion perfectly. Citizens Financial Group operates across the New England, Mid-Atlantic, and Midwest regions, serving a diverse range of customers through branches, telephone service centers, and online platforms. 

Despite this, CFG declined 11.8% from its 52-week high of $49.25. Shares of this bank have gained 4.3% over the past three months, lagging behind the broader Nasdaq Composite’s ($NASX) 9.1% return over the same time frame. 

However, in the longer term, CFG stock is up 31.1% on a YTD basis, slightly outperforming NASX’s 30.4% gains. Moreover, shares of CFG have gained 34.2% over the past 52 weeks, compared to NASX’s 32.4% returns over the same time frame.

CFG has been trading above its 200-day moving average since last year. Despite few fluctuations, the stock has also maintained its position above the 50-day moving average during the same period.

Shares of Citizens Financial fell 2.5% on Oct. 16 due to disappointing Q3 results and concerns about operational performance. While adjusted EPS of $0.79 matched estimates, revenues of $1.9 billion missed the consensus estimate, and net income declined 11.2% year-over-year to $382 million. Lower net interest income and shrinking net interest margin further weighed on investor sentiment. Additionally, declining loan and deposit balances and deteriorating credit quality, including higher net charge-offs and non-accrual loans, increased concerns about CFG’s operational outlook.

CFG has outperformed its rival Fifth Third Bancorp (FITB), which gained 26.2% over the past 52 weeks and 24.5% on a YTD basis. 

Despite CFG’s outperformance relative to the broader market over the past year, analysts remain cautiously optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from 20 analysts in coverage, and as of writing, CFG is trading below the mean price target of $51.18. 

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. More news from Barchart

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.