Citigroup Inc. reports third quarter earnings in Thursday’s pre-market session, with Wall Street analysts expecting the company to earn $1.31 per share on $17.8 billion in revenues. Market players should expect the fiscal year revenue outlook rather than the quarterly results to drive short-term price action, with tax cut legislation and a December interest rate hike expected to lift commercial banking profits in 2018.
The sector outlook has brightened considerably since the November 2016 breakout, but 2017 gains have been hampered by D.C. gridlock and a slower-than-expected rise in interest rates. Citi has led its peers during this bullish advance, posting a series of multi-year highs following years of underperformance triggered by 2008’s near death experience. This leadership should continue in 2018, perhaps lifting shares in the financial powerhouse into the triple digits for the first time in nearly a decade. (See also: These Sectors Benefit From Rising Interest Rates.)
Citigroup has led its peers since the 2016 breakout and could rally above $100 if tax cuts become law and the Fed raises rates. …read more
Read more here: Citigroup Stock Could Hit Triple Digits in 2018