Is Now the Time to Invest in CIT Group Inc. (NYSE:CIT)?

Is Now the Time to Invest in CIT Group Inc. (NYSE:CIT)?


The CIT Group Inc. (CIT) shares are trading at lower $19.47 and the avg recommendation for the stock is Moderate Buy. The current analyst price target stands at $29.60.

To add more color to this target, the company’s high over the last year is $53.40 and the low is $12.02. Over the last 52 weeks, CIT is down -63.54% while the S&P 500 is up 0.70%. The catalyst for this interesting swing was the company’s recent earnings report.

A Notable Earnings Report

In the last quarter, CIT reported a profit of $287.9 million. CIT Group Inc. also saw revenues increase to $513.6 million. In addition, CIT has free cash flow of -$625.4 million as of 03-2020.

CIT booked profit margins of -11.70%, its Return on Equity (ROE) is -4.20%, and its Return on Assets is -0.40%. All told, it is clear that, CIT needs to be on your watchlist.

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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. CIT has a short ratio of 1.66 and outstanding shares of 98.09M.

Company Outlook

CIT has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 4.07 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at -2.31. Investors should also keep an eye on sector updates as CIT has historically followed its peers on positive news.

All told, CIT Group Inc. CIT has strung together solid data and demonstrated underlying fundamentals. At its current valuation, CIT represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.

CIT Group Inc. CIT is now commanding a market cap of 2.18B and a float of 95.81M. CIT is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of CIT stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!

Disclosure: we hold no position in CIT, either long or short, and we have not been compensated for this article.