Citigroup Inc., a diversified financial service holding company, provides various financial product and services to consumers, corporations, governments, and institutions worldwide. It operates through five segments: Services, Markets, Banking, U.S. Personal Banking, and Wealth. The Services segment includes Treasury and Trade Solutions, which provides cash management, trade, and working capital solutions to multinational corporations, financial institutions, and public sector organizations; and Securities Services, such as cross-border support for clients, local market expertise, post-trade technologies, data solutions, and various securities services solutions. The Markets segment offers sales and trading services for equities, foreign exchange, rates, spread products, and commodities to corporate, institutional, and public sector clients; and market-making services, including asset classes, risk management solutions, financing, prime brokerage, research, securities clearing, and settlement. The banking segment includes investment banking; advisory services related to mergers and acquisitions, divestitures, restructurings, and corporate defense activities; and corporate lending, which includes corporate and commercial banking. The U.S. Personal Banking segment provides co-branded cards and retail banking services. The Wealth segment provides financial services to high-net-worth clients through banking, lending, mortgages, investment, custody, and trust product offerings; and to professional industries, including law firms, consulting groups, accounting, and asset management. The company was founded in 1812 and is headquartered in New York, New York.

Citigroup, Inc.

For Immediate Release
Chicago, IL – October 27, 2025 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Mastercard Inc. MA, Netflix, Inc. NFLX, Citigroup Inc. C, Oil-Dri Corporation of America ODC and Perma-Pipe International Holdings, Inc. PPIH.
Here are highlights from Friday’s Analyst Blog:
Top Stock Reports for Mastercard, Netflix and Citigroup
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Mastercard Inc., Netflix, Inc. and Citigroup Inc., as well as two micro-cap stocks Oil-Dri Corporation of America and Perma-Pipe International Holdings, Inc. The Zacks microcap research is unique as our research content on these small and under-the-radar companies is the only research of its type in the country.
These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
Ahead of Wall Street
The daily 'Ahead of Wall Street' article is a must-read for all investors who would like to be ready for that day's trading action. The article comes out before the market opens, attempting to make sense of that morning's economic releases and how they will affect that day's market action. You can read this article for free on our home page and can actually sign up there to get an email notification as this article comes out each morning.
You can read today's AWS here >>> Pre-markets Soar on Softer CPI Numbers
Today's Featured Research Reports
Mastercard’s shares have outperformed the Zacks Financial Transaction Services industry over the year-to-date period (+10.2% vs. -4.6%). The company’s acquisitions and collaborations are helping the company to grow addressable markets and drive new revenue streams. Net revenues rose 16% year over year in the first half of 2025.
The accelerated adoption of digital and contactless solutions is providing an opportunity for its business to expedite its shift to the digital mode. Strong cash flow supports its growth initiatives and enables shareholder value-boosting efforts through repurchases and dividends. It paid a dividend of $1.4 billion in the first half of 2025.
However, MA's dividend yield is lower than the industry average. The Zacks analyst expects adjusted operating expenses to grow 15.6% year over year in 2025. Rebates and incentives increased 14% year over year in the first half of 2025. Also, the stock is overvalued compared to the industry. As such, the stock warrants a cautious stance.
(You can read the full research report on Mastercard here >>>)
Shares of Netflix have outperformed the Zacks Broadcast Radio and Television industry over the past year (+46.2% vs. +45.5%). The company reported third-quarter 2025 earnings of $5.87 per share, missing estimates by 14.8% due to a $619 million Brazilian tax expense. Revenue rose 17.2% year-over-year to $11.51 billion, driven by membership growth and advertising gains.
KPop Demon Hunters became its most-watched film ever at 325 million views. Operating margin reached 28%, below the 31.5% guidance due to the tax issue. Netflix doubled its ad revenue while expanding AI integration across content creation.
NFLX raised its full-year free cash flow forecast to $9 billion from $8-8.5 billion. For the fourth-quarter 2025, Netflix projects $11.96 billion in revenue with 16.7% growth, featuring major releases including Stranger Things' final season and NFL Christmas games. However, stiff competition from streaming players like Apple and Disney+ are headwinds.
(You can read the full research report on Netflix here >>>)
Citigroup’s shares have outperformed the Zacks Financial - Investment Bank industry over the year-to-date period (+43.3% vs. +28.4%). The company’s third-quarter 2025 results benefited from higher net interest income (NII) and solid non-interest revenues, with earnings surpassing estimates for four straight quarters. Despite the expectations of two additional rate cuts by the year-end, stabilizing funding costs and modest loan growth should support NII growth.
Citigroup’s transformation initiatives, including consumer banking exits, cost reductions and operational streamlining, position revenues to exceed $84 billion in 2025. Expansion into private credit strengthens diversification, while a solid capital base supports shareholder returns.
However, the volatile nature of investment banking (IB) and the trading business may pressure fee income. Also, lingering asset-quality pressures and rising expenses remain key risks.
(You can read the full research report on Citigroup here >>>)
Shares of Oil-Dri Corporation of America have outperformed the Zacks Chemical - Diversified industry over the past year (+77.8% vs. -25.2%). This microcap company with a market capitalization of $895.28 million is positioned for durable, margin-accretive growth driven by renewable diesel filtration and premium pet products.
The fluids purification unit reached record FY25 revenue of $105 million (more than 22% year over year), supported by strong biofuel demand and U.S. incentives. The Ultra Pet acquisition added $13.5 million in sales and higher-margin crystal litter, offsetting clay category weakness. B2B revenues rose 21% to $183 million with record performance across agriculture, fluids, and animal health, expanding operating income 31% to $59.8 million.
Overall, fiscal 2025 operating income grew 32% to $68.2 million on disciplined pricing, favorable mix, and cost control. With $50.5 million in cash, low leverage, and a 16% dividend hike, ODC maintains balance sheet strength to fund innovation, M&A, and shareholder returns.
(You can read the full research report on Oil-Dri Corporation of America here >>>)
Perma-Pipe International’s shares have outperformed the Zacks Steel - Pipe and Tube industry over the past year (+126.9% vs. +21.7%). This microcap company with market capitalization of $230.84 million has approval by Saudi Aramco unlocks direct access to one of the world’s largest pipe coating markets, aligning with its strategy to expand in high-value energy infrastructure. A $2.4 million contract in Qatar and facility development reinforce its MENA growth.
Financially, H1 2025 revenues rose 32% YoY to $94.6 million, with net income up 23%, showcasing margin strength. A record $30M in Q3 project wins enhances backlog visibility and global demand validation. With $17.3 million in cash and $17.9 million in unused credit, Perma-Pipe can fund expansion.
However, G&A costs rose 47% YoY, unbilled receivables surged and short-term debt increased, straining liquidity. A higher effective tax rate and unresolved internal control weaknesses pose ongoing risks. Despite these, shares are up 91% YTD and trade at attractive EV/Sales and EV/EBITDA multiples versus the industry.
(You can read the full research report on Perma-Pipe International here >>>)
Zacks Investment Research
800-767-3771 ext. 9339
https://www.zacks.com
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The Zacks Analyst Blog Highlights Mastercard, Netflix, Citigroup, Oil-Dri and Perma-Pipe

Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in PayPal Holdings Inc (Symbol: PYPL), where a total of 90,784 contracts have traded so far, representing approximately 9.1 million underlying shares. That amounts to about 57.5% of PYPL's average daily trading volume over the past month of 15.8 million shares. Especially high volume was seen for the $71 strike call option expiring October 24, 2025, with 8,125 contracts trading so far today, representing approximately 812,500 underlying shares of PYPL. Below is a chart showing PYPL's trailing twelve month trading history, with the $71 strike highlighted in orange:
Citigroup Inc (Symbol: C) saw options trading volume of 81,138 contracts, representing approximately 8.1 million underlying shares or approximately 57.1% of C's average daily trading volume over the past month, of 14.2 million shares. Especially high volume was seen for the $99 strike call option expiring October 24, 2025, with 6,816 contracts trading so far today, representing approximately 681,600 underlying shares of C. Below is a chart showing C's trailing twelve month trading history, with the $99 strike highlighted in orange:
And Home Depot Inc (Symbol: HD) options are showing a volume of 15,190 contracts thus far today. That number of contracts represents approximately 1.5 million underlying shares, working out to a sizeable 50.3% of HD's average daily trading volume over the past month, of 3.0 million shares. Particularly high volume was seen for the $395 strike call option expiring October 24, 2025, with 1,617 contracts trading so far today, representing approximately 161,700 underlying shares of HD. Below is a chart showing HD's trailing twelve month trading history, with the $395 strike highlighted in orange:
For the various different available expirations for PYPL options, C options, or HD options, visit StockOptionsChannel.com.
Also see:
SILO Average Annual Return
MTX Dividend Growth Rate
AAT Historical Stock Prices
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Noteworthy Friday Option Activity: PYPL, C, HD

Friday, October 24, 2025
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Mastercard Inc. (MA), Netflix, Inc. (NFLX) and Citigroup Inc. (C), as well as two micro-cap stocks Oil-Dri Corporation of America (ODC) and Perma-Pipe International Holdings, Inc. (PPIH). The Zacks microcap research is unique as our research content on these small and under-the-radar companies is the only research of its type in the country.
These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
Ahead of Wall Street
The daily 'Ahead of Wall Street' article is a must-read for all investors who would like to be ready for that day's trading action. The article comes out before the market opens, attempting to make sense of that morning's economic releases and how they will affect that day's market action. You can read this article for free on our home page and can actually sign up there to get an email notification as this article comes out each morning.
You can read today's AWS here >>> Pre-markets Soar on Softer CPI Numbers
Today's Featured Research Reports
Mastercard’s shares have outperformed the Zacks Financial Transaction Services industry over the year-to-date period (+10.2% vs. -4.6%). The company’s acquisitions and collaborations are helping the company to grow addressable markets and drive new revenue streams. Net revenues rose 16% year over year in the first half of 2025.
The accelerated adoption of digital and contactless solutions is providing an opportunity for its business to expedite its shift to the digital mode. Strong cash flow supports its growth initiatives and enables shareholder value-boosting efforts through repurchases and dividends. It paid a dividend of $1.4 billion in the first half of 2025.
However, MA's dividend yield is lower than the industry average. The Zacks analyst expects adjusted operating expenses to grow 15.6% year over year in 2025. Rebates and incentives increased 14% year over year in the first half of 2025. Also, the stock is overvalued compared to the industry. As such, the stock warrants a cautious stance.
(You can read the full research report on Mastercard here >>>)
Shares of Netflix have outperformed the Zacks Broadcast Radio and Television industry over the past year (+46.2% vs. +45.5%). The company reported third-quarter 2025 earnings of $5.87 per share, missing estimates by 14.8% due to a $619 million Brazilian tax expense. Revenue rose 17.2% year-over-year to $11.51 billion, driven by membership growth and advertising gains.
KPop Demon Hunters became its most-watched film ever at 325 million views. Operating margin reached 28%, below the 31.5% guidance due to the tax issue. Netflix doubled its ad revenue while expanding AI integration across content creation.
NFLX raised its full-year free cash flow forecast to $9 billion from $8-8.5 billion. For the fourth-quarter 2025, Netflix projects $11.96 billion in revenue with 16.7% growth, featuring major releases including Stranger Things' final season and NFL Christmas games. However, stiff competition from streaming players like Apple and Disney+ are headwinds.
(You can read the full research report on Netflix here >>>)
Citigroup’s shares have outperformed the Zacks Financial - Investment Bank industry over the year-to-date period (+43.3% vs. +28.4%). The company’s third-quarter 2025 results benefited from higher net interest income (NII) and solid non-interest revenues, with earnings surpassing estimates for four straight quarters. Despite the expectations of two additional rate cuts by the year-end, stabilizing funding costs and modest loan growth should support NII growth.
Citigroup’s transformation initiatives, including consumer banking exits, cost reductions and operational streamlining, position revenues to exceed $84 billion in 2025. Expansion into private credit strengthens diversification, while a solid capital base supports shareholder returns.
However, the volatile nature of investment banking (IB) and the trading business may pressure fee income. Also, lingering asset-quality pressures and rising expenses remain key risks.
(You can read the full research report on Citigroup here >>>)
Shares of Oil-Dri Corporation of America have outperformed the Zacks Chemical - Diversified industry over the past year (+77.8% vs. -25.2%). This microcap company with a market capitalization of $895.28 million is positioned for durable, margin-accretive growth driven by renewable diesel filtration and premium pet products.
The fluids purification unit reached record FY25 revenue of $105 million (more than 22% year over year), supported by strong biofuel demand and U.S. incentives. The Ultra Pet acquisition added $13.5 million in sales and higher-margin crystal litter, offsetting clay category weakness. B2B revenues rose 21% to $183 million with record performance across agriculture, fluids, and animal health, expanding operating income 31% to $59.8 million.
Overall, fiscal 2025 operating income grew 32% to $68.2 million on disciplined pricing, favorable mix, and cost control. With $50.5 million in cash, low leverage, and a 16% dividend hike, ODC maintains balance sheet strength to fund innovation, M&A, and shareholder returns.
(You can read the full research report on Oil-Dri Corporation of America here >>>)
Perma-Pipe International’s shares have outperformed the Zacks Steel - Pipe and Tube industry over the past year (+126.9% vs. +21.7%). This microcap company with market capitalization of $230.84 million has approval by Saudi Aramco unlocks direct access to one of the world’s largest pipe coating markets, aligning with its strategy to expand in high-value energy infrastructure. A $2.4 million contract in Qatar and facility development reinforce its MENA growth.
Financially, H1 2025 revenues rose 32% YoY to $94.6 million, with net income up 23%, showcasing margin strength. A record $30M in Q3 project wins enhances backlog visibility and global demand validation. With $17.3 million in cash and $17.9 million in unused credit, Perma-Pipe can fund expansion.
However, G&A costs rose 47% YoY, unbilled receivables surged and short-term debt increased, straining liquidity. A higher effective tax rate and unresolved internal control weaknesses pose ongoing risks. Despite these, shares are up 91% YTD and trade at attractive EV/Sales and EV/EBITDA multiples versus the industry.
(You can read the full research report on Perma-Pipe International here >>>)
Other noteworthy reports we are featuring today include Stryker Corp. (SYK), Analog Devices, Inc. (ADI) and Vertex Pharmaceuticals Inc. (VRTX).
Mark Vickery
Senior Editor
Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>
Today's Must Read
Featured Reports
Stryker (SYK) Gains from Market Leadership & New Launches
Per the Zacks analyst, Stryker's strong organic growth is driven by robotics leadership, innovative product launches, offsetting the impact of tariffs and rising costs.
New Drug Launches to Aid Vertex (VRTX) Amid CF Competition
While Vertex is progressing with its two new drug launches, Journavx in acute pain and Alyftrek/vanza triple in cystic fibrosis, the recent pipeline setbacks are a concern per the Zacks analyst.
O'Reilly (ORLY) to Gain from Expansion Strategy Amid Debt Woes
O'Reilly's store expansion efforts, with plans to open 200-210 new stores this year, are likely to boost prospects. But high long-term debt of around $6 billion is concerning, per the Zacks analyst.
Pricing Actions Aid Avery Dennison (AVY) Amid High Costs
Per the Zacks analyst, productivity initiatives, and cost saving actions bode well for Avery Dennison despite elevated higher raw material costs.
Expansion and Strong Macau Trends Boost Wynn Resorts (WYNN) Growth
Per the Zacks analyst, WYNN benefits from Macau gaming and steady Las Vegas demand. Strategic expansion into London via Aspinalls further enhances its global reach, though tariff-related risk persists
Improving Air Traffic Aid Hexcel Corporation (HXL) Amid Labor Shortage
Per the Zacks analyst, Hexcel Corporation is likely to benefit from the improving air traffic. Yet labor shortage result in delays and likely impact operating results.
Patterson-UTI (PTEN) Taps into Growth with Advanced Drilling
The Zacks analyst believes that Patterson-UTI's 'Apex' rigs and strong North American exposure will drive future growth, but the stock's volatility could pose a risk for some investors.
New Upgrades
Battery Management System Solutions Aid Analog Devices (ADI)
Per the Zacks analyst, Analog Devices is benefiting from a strong momentum in the electric vehicle space on the back of its robust Battery Management System solutions.
Seagate Gains From (STX) Increasing Mass Capacity Demand
Per the Zacks analyst, Seagate's performance is gaining from improving demand for mass capacity storage solutions and expansion into the SSD storage market.
North America Segment to Aid Zumiez's (ZUMZ) Top-Line Performance
Per the Zacks analyst, Zumiez is leveraging North America as its core growth engine. Comparable sales in the segment rose 4.2% year over year in Q2, marking the sixth consecutive quarter of growth.
New Downgrades
Canadian National Grapples With Rail Network Issues, High Costs
Per the Zacks Analyst, rail network issues due to headwinds like locomotive or crew/labor shortages and other service disruptions are challenges for CNI. Rising expenses weigh on the bottom line.
Cost Inflation Weighs on Hormel Foods' (HRL) Margins
Per the Zacks analyst, Hormel Foods is facing elevated input costs. In the third quarter of fiscal 2025, gross margin fell 70 basis points to 16.1% amid persistent inflationary pressures.
Rising Expenses Squeeze Molina Healthcare's (MOH) Margins
Per the Zacks analyst, increasing medical care costs and operating expenses are likely to keep pressuring Molina Healthcare's margins.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Top Stock Reports for Mastercard, Netflix & Citigroup

The Kids Aren't All Right (Banks, However, Are)

For Immediate Release
Chicago, IL – October 23, 2025– Zacks Director of Research Sheraz Mian says, "For the 99 S&P 500 members that have reported Q3 results, total earnings are up +13.7% from the same period last year on +8.2% higher revenues."
Finance Sector Provides Flying Start to Q3 Earnings Season
Note: The following is an excerpt from this week's Earnings Trends report. You can access the full report that contains detailed historical actual and estimates for the current and following periods, please click here>>>
Here are the key points:
For the 99 S&P 500 members that have reported Q3 results, total earnings are up +13.7% from the same period last year on +8.2% higher revenues, with 86.9% beating EPS estimates and 81.8% beating revenue estimates. The proportion of these 99 index members beating both EPS and revenue estimates is 75.8%.
For the Finance sector, we now have Q3 results from 54.5% of the sector's total market capitalization in the S&P 500 index. Total earnings for these Finance sector companies are up +23.0% from the same period last year on +12.0% higher revenues, with 97.0% beating EPS estimates and 87.9% beating revenue estimates.
The Finance sector's Q3 earnings performance is tracking significantly above what we have seen from the sector in other recent periods, both in terms of the earnings and revenue growth pace as well as the beats percentages. In fact, the sector's Q3 revenue beats percentage of 87.9% is the highest for this group of companies over the preceding 20-quarter period.
The above-average beats percentages at this stage of the Q3 reporting cycle are notable in light of the favorable revisions trend that was in place ahead of the start of this earnings season. In other words, actual Finance sector results came in ahead of expectations that had already moved up before these results came in.
Strong Start to the Q3 Earnings Season
American Express AXP became the latest Finance player to beat Q3 earnings and revenue estimates, also offering positive, reassuring commentary on the health of the consumer and the broader economy. The American Express results followed similar results and commentary from the likes of JPMorgan JPM, Citigroup C, Wells Fargo WFC and others.
The economic read-through from these bank results is reassuring and positive, notwithstanding worries about non-bank lenders following a few bankruptcies. Consumer spending and household financials remain stable on the back of a labor market that remains very strong. There are signs of improving credit demand, and delinquencies are off their highs, references to 'cockroaches' notwithstanding.
Importantly, the capital markets business has finally started showing results, after many quarters of management teams describing improving deal pipelines. We are still at low levels relative to history. But given the favorable regulatory and monetary policy backdrop, it is reasonable to get excited about the sector's Wall Street business.
For the 54.5% of the sector's market capitalization that have reported Q3 results, total earnings and revenues are up +23.0% and +12.0%, respectively, and 97.0% are beating EPS estimates and 87.9% are beating revenue estimates. The proportion of these Finance sector companies beating both EPS and revenue estimates is 87.9%.
For the Zacks Finance sector as a whole, Q3 earnings are expected to increase by +23.4% from the same period last year on +7.8% higher revenues.
The Earnings Big Picture
Positive Q3 results and reassuring management commentary from these banks are helping sustain the favorable revisions trend that has been in place lately.
For 2025 Q3, the expectation is for earnings growth of +7.3% on +6.7% revenue gains. We have consistently shown in this space how Q3 estimates have steadily increased since the quarter began.
The aforementioned favorable revisions trend validates the market's rebound from the April lows. However, the trend can only be sustained if Q3 earnings results and management guidance for Q4 and beyond confirm it.
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Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Zacks Earnings Trends Highlights: American Express, JPMorgan, Citigroup and Wells Fargo

In today's video, I will talk about the recent fears around the banking sector, more specifically, regional banks and lenders. Watch the short video to learn more, consider subscribing, and click the special offer link below.
*Stock prices used were from the trading day of Oct. 17, 2025. The video was published on Oct. 17, 2025.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Is This the End of the Bull Market or Another Buying Opportunity?

Note: The following is an excerpt from this week’s Earnings Trends report. You can access the full report that contains detailed historical actual and estimates for the current and following periods, please click here>>>
Here are the key points:
For the 99 S&P 500 members that have reported Q3 results, total earnings are up +13.7% from the same period last year on +8.2% higher revenues, with 86.9% beating EPS estimates and 81.8% beating revenue estimates. The proportion of these 99 index members beating both EPS and revenue estimates is 75.8%.
For the Finance sector, we now have Q3 results from 54.5% of the sector’s total market capitalization in the S&P 500 index. Total earnings for these Finance sector companies are up +23.0% from the same period last year on +12.0% higher revenues, with 97.0% beating EPS estimates and 87.9% beating revenue estimates.
The Finance sector’s Q3 earnings performance is tracking significantly above what we have seen from the sector in other recent periods, both in terms of the earnings and revenue growth pace as well as the beats percentages. In fact, the sector’s Q3 revenue beats percentage of 87.9% is the highest for this group of companies over the preceding 20-quarter period.
The above-average beats percentages at this stage of the Q3 reporting cycle are notable in light of the favorable revisions trend that was in place ahead of the start of this earnings season. In other words, actual Finance sector results came in ahead of expectations that had already moved up before these results came in.
Strong Start to the Q3 Earnings Season
American Express AXP became the latest Finance player to beat Q3 earnings and revenue estimates, also offering positive, reassuring commentary on the health of the consumer and the broader economy. The American Express results followed similar results and commentary from the likes of JPMorgan JPM, Citigroup C, Wells Fargo WFC, and others.
The economic read-through from these bank results is reassuring and positive, notwithstanding worries about non-bank lenders following a few bankruptcies. Consumer spending and household financials remain stable on the back of a labor market that remains very strong. There are signs of improving credit demand, and delinquencies are off their highs, references to ‘cockroaches’ notwithstanding.
Importantly, the capital markets business has finally started showing results, after many quarters of management teams describing improving deal pipelines. We are still at low levels relative to history. But given the favorable regulatory and monetary policy backdrop, it is reasonable to get excited about the sector’s Wall Street business.
For the 54.5% of the sector’s market capitalization that have reported Q3 results, total earnings and revenues are up +23.0% and +12.0%, respectively, and 97.0% are beating EPS estimates and 87.9% are beating revenue estimates. The proportion of these Finance sector companies beating both EPS and revenue estimates is 87.9%.
The comparison charts below show the Q3 revenue growth rates and blended beats percentages for these companies.
Image Source: Zacks Investment Research
For the Zacks Finance sector as a whole, Q3 earnings are expected to increase by +23.4% from the same period last year on +7.8% higher revenues, as the chart below shows.
Image Source: Zacks Investment Research
The Earnings Big Picture
Positive Q3 results and reassuring management commentary from these banks are helping sustain the favorable revisions trend that has been in place lately.
For 2025 Q3, the expectation is for earnings growth of +7.3% on +6.7% revenue gains. We have consistently shown in this space how Q3 estimates have steadily increased since the quarter began.
The chart below shows expectations for 2025 Q3 in terms of what was achieved in the preceding four periods and what is currently expected for the next three quarters.
Image Source: Zacks Investment Research
The chart below shows the overall earnings picture for the S&P 500 index on an annual basis.
Image Source: Zacks Investment Research
The aforementioned favorable revisions trend validates the market’s rebound from the April lows. However, the trend can only be sustained if Q3 earnings results and management guidance for Q4 and beyond confirm it.
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Finance Sector Provides Flying Start to Q3 Earnings Season

Interest rates are on the decline, U.S.-China trade tensions have heightened and markets have been on a wild ride of late. Against this backdrop, the largest banks of the United States reported earnings. The economic signal from these bank results remains positive so far despite concerns over non-bank lenders, especially after a few recent bankruptcies.
Wall Street credit concerns have resurfaced lately, following a warning from JPMorgan Chase JPM CEO Jamie Dimon about “cockroaches” in the U.S. economy, as quoted on Yahoo Finance. Note that on Thursday, shares of regional banking shares suffered due to fresh signs of credit stress in the banking sector.
Zions Bancorporation plunged 13% on the day and Western Alliance Bancorporation fell about 10%. Zions took a $50 million charge-off related to two loans extended through its California Bank & Trust division, as quoted on Yahoo Finance.
Meanwhile, Western Alliance said it filed a fraud lawsuit in August against a borrower tied to a revolving credit facility. However, Western Alliance has assessed the collateral and believes that their value is sufficient to cover the obligation.
Vanguard Financials Index Fund ETF VFH has lost 3.1% over the past month (as of Oct. 21, 2025) while SPDR S&P Bank ETF KBE has fallen 5.2%. These returns came against 0.7% uptick in SPDR S&P 500 ETF Trust SPY.
Is More Pain Ahead?
The capital markets segment is finally delivering results after several quarters of management highlighting improving deal pipelines. While activity has remained low by historical standards, the favorable regulatory and monetary policy environment makes it reasonable to be optimistic about the sector’s prospects.
Consumer spending and household finances remain stable, supported by a decent labor market. Credit demand shows signs of improvement and delinquencies have declined from their peaks despite references to so-called ‘cockroaches.’
For the Finance sector, we now have third-quarter results from 47.7% of the sector’s total market capitalization in the S&P 500 index. Total earnings for these Finance sector companies grew more than 20.4% from the same period last year on 10.9% higher revenues, with 96.2% beating EPS estimates and 88.5% beating revenue estimates.
JPMorgan Chase & Co. (JPM), Wells Fargo & Company WFC, Citigroup Inc. C, Goldman Sachs GS, Morgan Stanley MS and Bank of America BAC beat both top and bottom-line estimates in their latest earnings releases.
Upbeat Zacks Ranks
The Finance sector ranks fifth out of the 16 Zacks classified sectors. The Financial - Investment Bank category, which most big banks come from, is also strongly positioned at present. The industry ranks in the top 14% of the 243 industries classified by Zacks.
Cheaper Valuation
The financials sector currently trades at a forward price-to-earnings multiple of 10.97X versus 19.88X possessed by the S&P 500. The Financial - Investment Bank industry trades at a forward P/E of 15.61X.
Projected EPS Growth of the sector is a solid 8.41% versus the S&P 500’s growth of 6.88%. The Financial - Investment Bank industry’s growth is 14.45%. The financials sector currently has a lower debt-to-equity ratio of 0.34X than the S&P 500’s 0.58X. The Financial - Investment Bank industry’s debt-to-equity ratio is even lower at 0.15X.
Steepening Yield Curve in the Cards?
The Fed is currently cutting interest rates. If risk-on sentiment in the market holds (assuming the so-called AI bubble doesn’t burst), long-term bond yields are likely to rise, while short-term yields will decline due to the Fed’s rate cuts.
This would steepen the yield curve — a positive for the banking sector — by boosting banks’ net interest margins. However, healthy credit demand is necessary to support gains in the net interest margins.
Bank ETFs in Focus
Against this backdrop, financials exchange-traded funds (ETFs), such as iShares U.S. Financial Services ETF IYG, iShares US Financials ETF IYF, Invesco KBW Bank ETF KBWB, Financial Select Sector SPDR XLF and Vanguard Financials ETF VFH, should gain ahead.
(We are reissuing this article to correct a mistake. The original article, issued on Oct. 21, 2025 should no longer be relied upon.)
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Bank ETFs in Red Over the Past Month: Pain or Gain Ahead? (Revised)

Citigroup, Inc. C is on track to surpass $84 billion in total revenues for 2025, underscoring renewed strength and progress in CEO Jane Fraser’s comprehensive transformation plan and rising net interest income (NII) and non-interest revenues. The bank reported 9% year-over-year revenue growth in the third quarter of 2025 and a 7% rise in the first nine months.
Citigroup is progressing well with its multi-year effort to simplify its structure, exit non-core markets, and boost efficiency. In line with this, the company continues to refine its global footprint and sharpen its focus on core businesses.
In September 2025, Citigroup reached a milestone with the agreement to sell a 25% stake in Banamex to Mexican business leader Fernando Chico Pardo, advancing its goal of fully divesting and deconsolidating the Mexican unit. Meanwhile, the bank has revamped its operating model and leadership structure, cutting bureaucracy and complexity while enhancing speed and accountability.
To further strengthen its competitive edge, C is integrating artificial intelligence (AI) and automation into its operations to streamline workflows and improve risk management. Further, it is expanding in private markets and wealth management through targeted partnerships that boost revenue diversity and client engagement.
Moreover, stabilizing funding costs and modest loan growth will continue to aid Citigroup’s NII expansion, while solid capital markets business will continue to drive fee income in the upcoming period.
Together, strategic business restructuring efforts, along with the rise in NII and fee income, will keep supporting Citigroup’s revenue growth momentum.
How Are Other Banks Performing in Terms of Revenues
U.S. Bancorp USB: The company reported record net revenues of $7.33 billion, growing 6.8% year over year in the third quarter of 2025. Over the first nine months, net revenues grew 4.1%. The rise was driven by strength in fee income and NII.
U.S. Bancorp’s growth in NII and fee income, coupled with improved efficiency, will continue to support top-line growth. U.S. Bancorp expects total net revenues for 2025 to rise 3-5% from the $27.6 billion in 2024.
PNC Financial PNC: In the third quarter of 2025, the company reported record total revenues of $5.91 billion, up 8.9% year over year. The metric was up 6.5% year over year in the first nine months of 2025. The increase was driven by growth in both non-interest income and NII.
Looking forward, PNC Financial's rising NII and fee income, along with the pending acquisition of FirstBank Holding Company (to expand in Colorado and Arizona), will drive growth. PNC Financial’s management expects 2025 revenues to rise 6% from the $21.6 billion in 2024.
C’s Price Performance, Valuation & Estimates
Shares of Citigroup have gained 42.6% year to date compared with the industry’s growth of 28.8%.
Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, C trades at a forward price-to-earnings (P/E) ratio of 10.41X, below the industry’s average of 14.38X.
Price-to-Earnings F12M
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for C’s 2025 and 2026 earnings implies year-over-year rallies of 27.2% and 30.1%, respectively. The estimates for 2025 and 2026 have been revised upward over the past seven days.
Estimate Revision Trend
Image Source: Zacks Investment Research
Citigroup currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. Little-known AI firms tackling the world's biggest problems may be more lucrative in the coming months and years.
See "2nd Wave" AI stocks now >>
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.