Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the "long context," investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.Even ...

Citizens Financial Group (CFG) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #2 (Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.Since ...

Core Insights - Citizens Financial Group, Inc. (CFG) is a bank holding company based in Providence, Rhode Island, providing a range of retail and commercial banking services with a market cap of $23.1 billion [1][2] Financial Performance - CFG's stock reached a three-year high of $53.78 before a slight pullback, with a notable 29.6% increase over the past three months, outperforming the iShares U.S. Regional Banks ETF's (IAT) 15.5% rise during the same period [3] - Year-to-date, CFG's stock has surged 23.4% and 26.9% over the past 52 weeks, significantly exceeding IAT's 6.7% and 9.8% gains respectively [4] - Following the release of Q2 results on July 17, CFG's stock price increased by 3.9%. The company reported a 3.7% year-over-year growth in net interest income to $1.3 billion, despite a slight dip in gross interest income [5] - CFG's total revenue for the quarter was $1.9 billion, reflecting a 5.2% year-over-year increase, surpassing market expectations. The company's EPS rose 17.9% year-over-year to $0.92, beating consensus estimates by 4.6% [5] Competitive Position - CFG has outperformed its peer, Fifth Third Bancorp (FITB), which saw a 9% increase in 2025 and 5.6% gains over the past 52 weeks [6] - Among 24 analysts covering CFG, the consensus rating is a "Strong Buy," with a mean price target of $56, indicating a potential upside of 4.6% from current levels [6]

Group 1: Federal Reserve Actions - The Federal Reserve reduced its benchmark interest rate by 25 basis points to 4.00-4.25%, marking the first reduction since December 2024 [1] - The Fed signaled two more rate cuts by the end of 2025, attributing the easing to a softening labor market rather than inflation pressures [1] Group 2: Impact on Banking Sector - Several U.S. banking stocks, including Citigroup, Bank of America, and Citizens Financial Group, reached new 52-week highs following the Fed's announcement [2] - Lower interest rates are expected to support net interest income (NII) growth, easing funding pressure for banks [3] - The improved lending backdrop and higher refinancing activity will help offset potential yield compression on loans and securities [3] - Increased borrowing and market liquidity are anticipated to drive higher deal volumes and trading opportunities, benefiting investment banking and trading businesses [3] Group 3: Citigroup Insights - Citigroup's NII has shown a three-year CAGR of 8.4% (ended 2024), with expectations for a 4% year-over-year increase in 2025 [5][12] - The company is streamlining consumer banking operations globally, exiting from nine countries to focus on wealth management and investment banking [6] - Citigroup projects a CAGR of 4-5% in revenues by the end of 2026, with expected annualized run rate savings of $2-2.5 billion by 2026 [7] Group 4: Bank of America Insights - Bank of America's NII has experienced a CAGR of 9.3% over the last three years, with management expecting a 6-7% year-over-year growth in 2025 [9][12] - The bank plans to open over 150 financial centers by 2027, with 40 expected to open this year, supporting NII and cross-selling opportunities [10] - The Zacks Consensus Estimate for Bank of America's earnings implies year-over-year growth of 12.2% and 16.1% for 2025 and 2026, respectively [13] Group 5: Citizens Financial Insights - Citizens Financial's total revenues have shown a CAGR of 3% over the last four years, driven by NII and fee income [14] - The company expects NII to grow 3-5% and non-interest income to rise 8-10% year-over-year in 2025 [14][12] - Citizens Financial aims for a return on tangible equity of 16-18% and a net interest margin of 3.25-3.50% by 2027 [15]

Group 1: Company Overview - Citizens Financial Group is a Rhode Island-based bank holding company with a history dating back to 1828, currently valued at $22 billion and known as the parent company of Citizens Bank [3] - As of June 30, Citizens Bank reported total assets of $220.1 billion, including $177.6 billion in deposits, operating through 1,000 branches and 3,100 ATMs across 14 states plus DC [2] Group 2: Financial Performance - In Q2 2025, Citizens reported a top line of $2.04 billion, a 4% year-over-year increase, beating forecasts by $30 million, with adjusted earnings of 92 cents per share, covering the dividend and exceeding estimates by 4 cents [6] - Flagstar Financial, previously known as New York Community Bancorp, reported Q2 2025 revenue of $496 million, down 26% year-over-year, with a net loss of 14 cents per share, marking an improvement from a $1.05 EPS loss in the same quarter last year [10][11] Group 3: Capital Return and Dividends - Citizens has a regular stock repurchase program, buying back $200 million worth of shares in both Q1 and Q2 of this year, and declared a dividend payment of 42 cents per common share, annualizing to $1.68 per share with a forward yield of 3.24% [1][6] Group 4: Analyst Insights - Cantor analyst Dave Rochester believes bank stocks should be included in investment portfolios, citing lower interest rates and a healthy economic backdrop as positive factors for credit trends [4] - Rochester projects EPS growth for Citizens of 17.2% in FY25, 38.1% in FY26, and 22.3% in FY27, with a price target of $61, indicating a potential one-year gain of 19% [7] - For Flagstar Financial, Rochester has an Overweight rating with a price target of $15, suggesting a 24% gain, while the stock currently trades at $12.10 with an average target price of $13.70, implying a 13% appreciation [11][12]

Core Viewpoint - Citizens Financial Group, Inc. has reduced its prime lending rate from 7.50 percent to 7.25 percent, effective September 18, 2025 [1] Company Overview - Citizens Financial Group, Inc. is one of the oldest and largest financial institutions in the United States, with total assets amounting to $218.3 billion as of June 30, 2025 [1] - The company is headquartered in Providence, Rhode Island, and offers a wide range of retail financial services [1]

Group 1 - Citizens announced a new $20 million commitment over the next three years (2026 to 2028) to support workforce development programs and long-term economic growth [1] - This investment builds on the successful delivery of the bank's previous $10 million commitment across 2024 and 2025, which exceeded funding expectations [1] - The funding will continue to support nonprofits working to enhance educational and career pathways [1]

Core Insights - Zacks Premium provides various tools for investors to enhance their stock market strategies, including daily updates on Zacks Rank and Industry Rank, access to the Zacks 1 Rank List, Equity Research reports, and Premium stock screens [1] Zacks Style Scores - Zacks Style Scores rate stocks based on value, growth, and momentum characteristics, serving as complementary indicators to the Zacks Rank, helping investors identify securities likely to outperform the market in the next 30 days [2][7] - Stocks are rated from A to F, with A indicating the highest potential for outperformance [3] Value Score - The Value Style Score focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow, aiming to find attractive investment opportunities [3] Growth Score - The Growth Style Score evaluates stocks based on projected and historical earnings, sales, and cash flow, targeting companies with sustainable growth potential [4] Momentum Score - The Momentum Style Score assesses stocks based on price trends and earnings outlook, utilizing factors like one-week price change and monthly earnings estimate changes to identify high-momentum investment opportunities [5] VGM Score - The VGM Score combines the Value, Growth, and Momentum Scores, providing a comprehensive rating to help investors find stocks with the best overall potential [6] Zacks Rank Performance - The Zacks Rank model has shown strong performance, with 1 (Strong Buy) stocks achieving an average annual return of +23.64% since 1988, significantly outperforming the S&P 500 [8] Stock Selection Strategy - To maximize returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B, while also considering the direction of earnings estimate revisions [9][10] Company Spotlight: Citizens Financial Group - Citizens Financial Group, headquartered in Providence, RI, offers retail and commercial banking services and is currently rated 3 (Hold) on the Zacks Rank with a VGM Score of B [11] - The company has a Momentum Style Score of B, with shares increasing by 5.2% over the past four weeks, and 11 analysts have revised earnings estimates upwards for fiscal 2025, raising the Zacks Consensus Estimate by $0.06 to $3.81 per share [12]

PresentationUnknown Analyst We're very pleased to have Citizens' Financial with us. From the company, we have Bruce Van Saun, Chairman and CEO. Bruce has been a very long supporter of this conference as CFO of Bank of New York Mellon; CFO of Royal Bank of Scotland; and for many, many years, Citizens Financial Group, where he is Chairman and CEO. So Bruce, thank you so much for joining us this morning. ...

Citizens Financial Group (NYSE:CFG) FY Conference September 08, 2025 10:30 AM ET Unknown Speakertextnumber_of_speakersparagraphs ...