Following better-than-expected first-quarter 2017 results, Citizens Financial Group, Inc. (NYSE:CFG) continues to be on track to ramp up its profitability with fresh “Tapping Our Potential” program objectives for 2017.
Citizens Financial’s shares returned 9.0% over the last six months, outperforming the Financial - Savings and Loan industry’s decline of 1.8%.
Furthermore, Citizens Financial witnessed upward estimate revisions of 7.0% and 3.8% for 2017 and 2018, respectively, in the last 30 days. As a result, the company sports a Zacks Rank #1 (Strong Buy).
Why the Stock is Worth Buying
Earnings Per Share Strength: Over the past three to five years, Citizens Financial witnessed earnings per share (EPS) growth of 28.14% compared with 6.81% for the industry. Notably, the company also recorded an average positive earnings surprise of 9.12%, over the trailing four quarters.
Also, the company’s long-term (three to five years) estimated EPS growth rate of 11.9% promises rewards for investors over the long run.
Efficient Capital Deployment: Apart from an ongoing share repurchase program, the company displayed its strong balance sheet position by increasing the quarterly common stock dividend by 17% for the first quarter.
Strong Leverage: Citizens Financial’s debt/equity ratio is 0.60 compared with the industry average of 0.67. The relatively strong financial health of the company will help it perform better than its peers under a dynamic business environment.
Undervalued: Citizens Financial has a P/B ratio of 0.90x compared with the broader industry’s average of 1.30x. Based on this ratio, the stock seems undervalued. Also, the company has a Value Score of ‘B’, which makes it a good pick for value investors.
Some of the other financial stocks worth considering include M&T Bank Corporation (NYSE:MTB) , Northern Trust Corporation (NASDAQ:NTRS) and The PNC Financial Services Group, Inc. (NYSE:PNC) .
Northern Trust and PNC Financial carry a Zacks Rank #2 (Buy), whereas M&T Bank sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
M&T Bank witnessed an upward earnings estimate revision of 5.3%, over the past 60 days. Also, its share price gained 35.4% over the last one year.
Northern Trust's earnings estimates moved upward by 2.4% over the past 60 days, for the current year. Its share price increased 19.9%, over the last one year.
PNC Financial’s current-year earnings estimates were revised 3.0% upward, over the past 60 days. Over the last one year, its share price surged 35.2%.
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PNC Financial Services Group, Inc. (The) (PNC): Free Stock Analysis Report
M&T Bank Corporation (MTB): Free Stock Analysis Report
Northern Trust Corporation (NTRS): Free Stock Analysis Report
Citizens Financial Group, Inc. (CFG): Free Stock Analysis Report
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