Thursday, February 26

Citizens Financial Group (CFG) Valuation Check As Shares Show Sustained Momentum


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Citizens Financial Group (CFG) has drawn attention recently as investors reassess large regional banks, with its share price reflecting mixed short term moves alongside stronger performance over the past 3 months and year.

That backdrop is prompting closer scrutiny of how Citizens Financial Group’s current valuation, profitability, and balance of consumer and commercial banking activities might fit into a diversified portfolio for investors comfortable with U.S. bank exposure.

See our latest analysis for Citizens Financial Group.

At a share price of US$63.06, Citizens’ recent 1 day share price return of 1.59% and 90 day share price return of 16.82%, alongside a 1 year total shareholder return of 45.29%, point to momentum that has built over time rather than in a single short burst.

If this move in a regional bank has you thinking about where else returns could come from, it might be worth scanning our list of 21 top founder-led companies as a way to broaden your opportunity set beyond financials.

With Citizens trading at US$63.06 and indicators like an intrinsic discount of 39.1% and a value score of 3, the key question is whether investors are overlooking upside or whether the market is already accounting for future growth in the price.

According to DailyInvestors, the narrative pins Citizens Financial Group’s fair value at $86.72, comfortably above the last close at $63.06, which sets up a clear valuation gap for investors to think about.

Citizens Financial is currently $43.60. They will be releasing their quarterly report tomorrow morning during Pre-Market. Currently up 30.96% for the year, and 13.61% over the last three months. The stock is known for major price spikes around report releases. Here at The Daily Investors, we are expecting a beat tomorrow. The current estimate is $0.79 in earnings per share, and we are estimating a gain of around $0.83. Their last earnings release indicated that the company may be turning around. Several technical signals are showing a positive uptrend compared with the prior two beats. With the economy reported as improving on a monthly basis, some investors may anticipate another move higher in line with their banking peers.

Read the complete narrative.

If you want to see what is backing that higher fair value, the narrative leans heavily on stronger margins, faster revenue growth, and a richer future earnings multiple. This raises the question of which assumptions really drive the $86.72 view, and how they differ from what the current $63.06 price implies.

Result: Fair Value of $86.72 (UNDERVALUED)

Have a read of the narrative in full and understand what’s behind the forecasts.

However, there are clear risks here, including any disappointment around earnings or margins, as well as a shift in sentiment toward regional banks more broadly.

Find out about the key risks to this Citizens Financial Group narrative.

That $86.72 fair value from DailyInvestors leans on one set of assumptions, but the market is also looking at simpler yardsticks like the P/E ratio. Citizens trades at 15.9x earnings, compared with 11.7x for US banks and 13.3x for peers, while our fair ratio sits at 16.8x.

So the shares look expensive versus the sector, yet closer to our fair ratio. This suggests some valuation risk if sentiment on banks cools, but also less obvious upside if the price already reflects a better future. Which reference point do you put more weight on when numbers pull in different directions?

See what the numbers say about this price — find out in our valuation breakdown.

NYSE:CFG P/E Ratio as at Feb 2026
NYSE:CFG P/E Ratio as at Feb 2026

If this mix of optimism and caution around Citizens resonates with you, it is worth checking the numbers yourself and forming a clear view before sentiment shifts again, starting with the 4 key rewards.

If you are serious about sharpening your portfolio, do not stop with one bank. Use the screener to surface other ideas before the crowd gets there.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include CFG.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com



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