CIT Story Overview

CIT -- USA Stock  

USD 43.41  0.36  0.84%

Macroaxis News
  
By David Taylor

Citibank has seen its fair share of problems over the past few years.  In fact, its stock was trading at a record low of just about $.74 per share.  As it is, had you had the temerity to buy into that at that time you would be sitting on a very tidy fortune; the current stock price is $43. per share.  But, Citi was so bruised up it would have been very tough to get into that stock at that time.  There was a tremendous amount of fear in the markets and blood in the streets.

Banking
Fama & French Classification
Citibank has been left behind from the rest of the market but is now ready to be bought.

The banking industry was sold off dramatically from the Great Recession.  Since then, banks have done well.  Now, these banks are about to see real opportunity because of the increase in interest rates.   Because of that the financial stocks have skyrocketed since November.  Here is one stock that was left behind and will likely catch up.  




Citibank has seen its fair share of problems over the past few years.  In fact, its stock was trading at a record low of just about $.74 per share.  As it is, had you had the temerity to buy into that at that time you would be sitting on a very tidy fortune; the current stock price is $43. per share.  But, Citi was so bruised up it would have been very tough to get into that stock at that time.  There was a tremendous amount of fear in the markets and blood in the streets.  

But, it might be that the market is offering you another opportunity to get into Citi at a very good price.  Whereas the rest of the stock market is trading at a price-to-earnings ratio of about 26, Citi is half that at 13.  I believe that there is very likely to be a correction in the market in the next few weeks.  The Dow Industrials has moved up 12.5% since the November election.  That is an impressive if it had been the return for the year.  But, that is the return for just about 8 week’s time.  So, likely, participants will be taking money off the table.  That will likely mean that CIT may move even lower than where it is, dipping to maybe as low as 9 times earnings.  

Speaking of earnings, here are the last several years:

2011:    $0.13

2012:   -$2.95  

2013:    $3.37 

2014:    $5.99  

2015:    $5.70

Like all companies during 2012 there was a sharp downturn in economic activity.  And, like most companies since then the profits have returned.  But, unlike most companies, there is not frenzied buying into this stock pushing it above the average earnings-per-share.  Again, CIT is trading at half the current level of the overall market.

But, I believe that the fortunes of financial companies are changing significantly and that there will be significant profits going forward.  This has a lot to do with the fact that interest rates are moving higher and banks and financial services firms earn their profits via interest rates.  But, the rates have been so low that there has not been a significant spread between what a bank charges its lenders and what the bank pays its savings accounts.  Now, since interest rates are moving upward the spread will widen; banks have the potential to be very profitable.  

Another reason that I like banks is that these companies have been hit so hard because of the financial crisis that they stripped down their companies to the absolute bare minimum.  So, any new revenues, outside of variable costs, should make it to the bottom line.  And, seeing that the potential for profits is growing significantly as it is then banks will do well.  

Then there is the other factor, the economy itself.  As the economy expands forward then the demand for money will increase significantly.  Consumers are earning more and more and that will translate into increased purchases in the services sectors of the economy.  Then, companies will begin to increase their own spending on facilities.  We are seeing this already print in the economic data.  This all takes money, what banks do best.  

Despite being left behind, and despite having been in such a dire situation, I see a lot of potential in CIT.  I remember looking at that stock when it was so low and thinking it would have been a great time to pick a few shares up for my own portfolio.  But, I did not have the nerves of steel necessary to pull the trigger.  I missed that opportunity.  I think I am going to add in some now and not miss twice. 

Story Momentum

This article from Macroaxis published on 06 of January contributed to the next trading period closing price depreciation.The overall trading delta to the next next day price was 1.03% . The overall trading delta when the story was published to current price is 0.85% .

Similar stores for CIT

Cit Group Inc Sentiment Worsening on Low Stock Potential - The Cardinal Weeklynews
Cit Group Inc Sentiment Worsening on Low Stock Potential The Cardinal WeeklyWhich of 2 stocks would appeal to long-term investors Guess, Inc. , CIT Group Inc. StockNewsGazetteCIT Group Inc. Shares Sold by Aviva PLC PressOracleToday Morgan Stanley Keeps a Equal-Weight Rating on CIT Group and a 52 Target Price Thorold NewsShould You Avoid CIT Group Inc. Insider MonkeyView full coverage on Google News
few days ago at http://herdongazette.com 
Cit Group Inc Del Company Stock Focus - Herdon Gazette
news
Cit Group Inc Del Company Stock Focus Herdon GazetteTaking a look at some indicators for Cit Group Inc Del , we have noted that the current 20-day moving average vs price signal is Sell. This is the signal from ...
over a week ago at http://newsleading.info 
CIT Group Inc. Stock Price Posted change of 0.30 percent - News Leading
news
CIT Group Inc. Stock Price Posted change of 0.30 News LeadingInvestors tracking shares of CIT Group Inc. may be focusing on where the stock is trading relative to its 52-week high and low. At the time of writing, the ...
over a week ago at http://hartsburgnews.com 
Do you Own More than 4.54 percent of CIT Group Inc. - Hartsburg News
news
Do you Own More than 4.54 percent of CIT Group Inc. Hartsburg NewsA recent look at ownership and volatility brings us to a 4.54 percent target portfolio weight for CIT Group Inc. Target weight is the volatility ...
over two weeks ago at http://hawthorncaller.com 
Digging Deep in to the Numbers for CIT Group Inc. - Hawthorn Caller
news
Digging Deep in to the Numbers for CIT Group Inc. Hawthorn CallerConsidering the below data elements and information, analysts have given CIT Group Inc. a consensus recommendation of 2.2. This is according to ...
over two weeks ago at http://www.postanalyst.com 
Institutional investors now have 5.06 billion stake in CIT Group Inc.
news
Post AnalystLos Angeles Capital Management Equity Research Inc. Reduces Position in CIT Group Inc. Fairfield CurrentCIT Group Inc. Stock under Close Observation News Stays On Track Full coverage
over two weeks ago at http://www.streetinsider.com 
US business borrowing for equipment rises 6 percent in October ELFA
Street Insider News
StreetInsider.comFull coverage
over three weeks ago at http://www.livetradingnews.com 
Banks Will Feel Pain Once Crude Oil Price Fall Below 50 bbl
news
Live Trading NewsFull coverage
over a month ago at http://postanalyst.com 
CIT Group Inc. Institutional Ownership Summary
news
Post AnalystRobeco Institutional Asset Management BV Has 7.32 Million Stake in CIT Group Inc. Fairfield CurrentWorth Watching Stocks US Foods Holding Corp. , CIT Group Inc The Newburgh PressFull coverage
over a month ago at http://newburghpress.com 
Stocks for Your Case CIT Group Inc , Iridium Communications Inc
news
The Newburgh PressFull coverage
over a month ago at http://www.equities.com 
CIT Group Inc Moves Lower on Volume Spike for October 22
Equities News
Equities.comMorgan Stanley Has 47.47 Million Stake in CIT Group Inc. PressOracleCIT Group Inc. Shares Bought by California Public Employees Retirement System Marea Informative Full coverage
over three months ago at www.macroaxis.com 
Sale by Taylor William J of 300 shares of CIT
Macroaxis News
Filed transaction by Cit Group Inc officer. General open market or private sale of non-derivative or derivative security
over three months ago at www.macroaxis.com 
Exercise or conversion by Peter Tobin of 1117 shares of CIT subject to Rule 16b-3
Macroaxis News
Filed transaction by Cit Group Inc director. Exercise or conversion of derivative security exempted pursuant to Rule 16b-3

Latest Stories

Recently Published Stories

Current Valuation

Current Valuation Comparative Analysis

  Current Valuation 
      CIT Comparables 
CIT is currently under evaluation in current valuation category among related companies. Enterprise Value is a firm valuation proxy that approximates current market value of a company. It is typically used to determine takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that company has on its balance sheet. When takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
Check also CIT Hype Analysis, CIT Correlation and CIT Performance. Please also try Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Search macroaxis.com