Citizens Financial Group [CFG] has spent much of the past decade reshaping its balance sheet, building new revenue lines, and positioning itself for resilience.
Now the results are showing up in the numbers. With shares up nearly 23% over the past year and trading just above $51, CFG is pressing into new highs even as many peers struggle.
The setup here combines value, growth, and income, an unusual trifecta in the financial sector.
Tech Surge (Sponsored)
Geopolitical tensions and record highs in the Nasdaq are fueling a rush into U.S.-based AI leaders.
Smart money is targeting companies with real revenue, deep AI integration, and defense potential.
In my free report, “Top 9 AI Stocks for This Month,” you’ll discover:
A hidden chip maker powering domestic AI manufacturing
A cloud provider set to boom from new regulatory shifts
A data analytics firm positioned for lucrative government contracts
With markets moving fast and defense budgets climbing, these stocks could break out any day.
[Get Your Free Copy Now] — before it’s behind a paywall.
Strategic Positioning
Citizens Financial is a Rhode Island–based bank holding company with over $220 billion in assets, serving retail, commercial, and institutional customers across the Northeast, Midwest, and Mid-Atlantic.
Unlike some of its peers, which lean heavily on volatile investment banking or trading, CFG’s model centers on core banking activities: deposits, lending, mortgages, and wealth management.
This provides stable earnings while still allowing for growth.
Management has focused on expanding into attractive metro markets, particularly New York, and building out its private banking and credit card businesses.
At the same time, it has maintained discipline on expenses and capital return, creating a mix of offense and defense.
With a 3.24% dividend yield and ongoing buybacks, investors are rewarded for their patience as the growth strategy unfolds.
Ahead of the Rally (Sponsored)
Q3 2025 is shaping up fast — and the right moves now could define the rest of your year.
That’s why we’ve just released a brand-new guide: The Top Seven Stocks for This Quarter.
Inside, you’ll discover:
✅ Key sectors projected to surge this summer
✅ Simplified insights for smarter decisions
✅ Data-driven expert picks designed for growth
This isn’t guesswork — it’s research-backed strategy for investors ready to position themselves ahead of the crowd.
Get your free copy now before the summer rally leaves you behind.
Action: Position Early Before the Re-Rating
CFG trades at a forward P/E around 12.8x and a PEG ratio of just 0.5, levels that suggest the market still values it like a challenged regional bank rather than a growing, capital-efficient franchise.
As analyst upgrades and fresh earnings momentum continue, that valuation gap could close quickly.
Starting a position while CFG remains priced below its fair multiple provides a chance to benefit from both dividend income and capital appreciation.
Want to make sure you never miss a stock recommendation?
Elite Trade Club now offers text alerts — so you get trending stocks and market-moving news sent straight to your phone before the bell. Email’s great. Texts are faster.
Recent Momentum
Q2 2025 results provided the latest evidence that Citizens is executing.
EPS came in at $0.92 versus expectations of $0.88, while revenue reached $2.03 billion, ahead of the $1.98 billion forecast.
Growth was driven by higher net interest income and expanding loan volumes, showing that CFG is capturing demand even in a cautious credit environment.
Shares rose nearly 4% on the release, and the stock has since gained another leg higher. CFG has now beaten or met consensus EPS estimates in each of the last four quarters, a record that builds investor confidence.
Analyst sentiment has shifted accordingly.
JPMorgan upgraded CFG to Overweight in early August, raising its target price from $48.50 to $52, while DA Davidson has recently increased its target to $55 after previously expressing caution.
The consensus mean price target now sits at $54.62, with a high estimate of $65, suggesting potential upside of more than 20% from current levels.
Breakout Watchlist Ready (Sponsored)
Most investors are satisfied with modest returns.
But the real winners? They act before the big re-pricing moments happen.
We’ve identified 5 companies that appear to be in that exact position today.
In our exclusive free report, “5 Stocks Set to Double,” you’ll learn which names are signaling early strength — and why they could deliver outsized returns over the next year.
Previous editions of this research highlighted companies that later gained +175%, +498%, and even +673%.¹
While nothing is promised, the setups here are hard to ignore.
But timing matters.
This report won’t be available after tonight.
[Get your free copy now]
*This free resource is being sent by Zacks. We identify investment resources you may choose to use in making your own decisions. Use of this resource is subject to the Zacks Terms of Service.
*Past performance is no guarantee of future results. Investing involves risk. This material does not constitute investment, legal, accounting, or tax advice. Zacks Investment Research is not a licensed dealer, broker, or investment adviser.
Growth Outlook
Looking ahead, CFG expects EPS growth of 17.6% this year, with 2025 earnings projected at $3.81 per share.
That compares favorably to the broader banking sector, which is forecast to grow in the mid-single digits.
Management has guided for 8–10% fee income growth and improving operating leverage, supported by new initiatives in credit cards, digital banking, and wealth management.
The bank’s expansion into metro New York offers an additional growth lever.
By targeting affluent customers in a competitive yet lucrative market, Citizens aims to diversify away from slower-growing legacy regions.
Combined with private banking initiatives, this could meaningfully lift non-interest income and expand return on equity over the next two to three years.
CFG’s capital position also supports growth. With a CET1 ratio above 10.6% and healthy liquidity, the company has the flexibility to increase lending without straining its balance sheet.
Action Plan: Value with Income
At just over 15x trailing earnings and yielding more than 3%, CFG offers a rare balance.
The dividend has been paid consistently for 12 years and was increased earlier this year to $0.42 per share quarterly.
Management has also been active on buybacks, repurchasing $200 million in Q1 alone.
If earnings estimates hold and CFG delivers on its 17% growth forecast, shares at $52 could look inexpensive relative to both peers and fundamentals.
A re-rating toward a 14–15x multiple on $4 EPS would imply a stock price in the low-to-mid $60s within 12–18 months, in line with Street-high targets.
Risks
Every bank carries risk, and Citizens is no exception. Key considerations include:
Economic slowdown: Loan growth could stall if U.S. growth decelerates, which would pressure net interest income.
Credit quality: Rising delinquencies in consumer credit or commercial loans would hit margins.
Interest rate path: Falling rates could narrow net interest margins more quickly than expected, reducing profitability.
Competition in new markets: Expansion into New York pits CFG against entrenched giants like JPMorgan, where customer acquisition costs are higher.
Regulatory shifts: Changes in capital requirements or stress test assumptions could impact capital return plans.
While none of these risks are unique to Citizens, investors should consider them in relation to the current valuation and income potential.
Technical and Sentiment Check
CFG has outperformed peers such as PNC and Truist over the past year but remains undervalued compared to sector leaders.
The stock is trading just above its 52-week high of $52.02, a level that may act as near-term resistance.
However, momentum indicators remain positive, and institutional inflows have been supportive.
Retail sentiment remains cautious, suggesting that there is still room for broader adoption.
A breakout above $52, accompanied by strong volume, could quickly open a path to $55. Support sits near $48, providing a logical stop-loss level for shorter-term traders.
Final Take
Citizens Financial Group is not a flashy bank, but that may be the point.
In a sector often plagued by volatility and regulatory uncertainty, CFG has established a track record of steady performance, disciplined expense management, and reliable dividends.
With valuation still modest and analysts turning increasingly bullish, the setup here is compelling.
Investors seeking a balance of income and potential upside may find CFG one of the more attractive mid-cap financials heading into 2026.
Action Recap |
That’s all for today. Thank you for reading. If you have any feedback, please reply to this email.
Best Regards,
— Adam Garcia
Elite Trade Club
Click here to get our daily newsletter straight to your cell for free.
P.S. Just like this newsletter, it's 100% free*, and you can stop at any time by replying STOP.
