Why Citizens Financial Group (CFG) is a Top Value Stock for the Long-Term

Core Insights - Zacks Premium provides tools for investors to enhance their stock market strategies, including daily updates, research reports, and stock screens [1] - The Zacks Style Scores are designed to help investors identify stocks with the highest potential to outperform the market in the short term [2] Zacks Style Scores Overview - The Style Scores categorize stocks into four types: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [3][4][5][6] - Value Score emphasizes finding undervalued stocks based on financial ratios [3] - Growth Score focuses on companies with strong financial health and growth potential [4] - Momentum Score identifies stocks benefiting from current price trends [5] - VGM Score combines all three styles to highlight stocks with the best overall characteristics [6] Zacks Rank and Style Scores Interaction - The Zacks Rank is a proprietary model that uses earnings estimate revisions to guide investment decisions [7] - Stocks rated 1 (Strong Buy) have historically outperformed the S&P 500, with an average annual return of +23.81% since 1988 [8] - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal returns [9] - Stocks with lower ranks, even with good Style Scores, may still face downward price pressure due to negative earnings outlooks [10] Company Spotlight: Citizens Financial Group - Citizens Financial Group, headquartered in Providence, RI, offers a range of banking products and services [11] - The company currently holds a Zacks Rank of 3 (Hold) and a VGM Score of B, indicating moderate potential [11] - Citizens Financial has a Value Style Score of B, supported by a forward P/E ratio of 13.19, making it attractive to value investors [12] - Recent upward revisions in earnings estimates suggest positive momentum, with the Zacks Consensus Estimate for fiscal 2025 at $3.81 per share, reflecting a +2.4% average earnings surprise [12]