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NYSE:C

Citigroup Inc. (C)

143.35
+0.29 (0.20%)
as of Jun 18, 2026, 11:46:01 pm Market Open.
95 watching
0
DON'T BUY
It's the second-worst of the big banks. They beat their report yesterday, but expenses also rose. Consumer banking's revenues declined 5% as expenses rose 5%. No setbacks here to report, but Citi didn't make much progress either. The stock is trading cheaply, though.
DON'T BUY
They report Thursday. Citi is a perennial underachiever, which he doesn't expect to change.
PAST TOP PICK
(A Top Pick Oct 08/20, Up 59%) Too cheap to ignore last year. Still a good name at this point. Not as much visible growth until we get higher interest rates. With the recent correction, it's become a buy.
BUY
C vs. MS Likes the banking sector, US banks in general, and both these names. Citi is at its 200-day MA, pretty cheap at below book value of 0.77, a diversified bank. MS price to book is 1.9x, has done well, with more growth so you're paying up for it, more into wealth management and institutional securities.
TOP PICK

Yields 3% and trades at 70% tangible book value, half of other banks. Yes, it has regulatory problems like Wells Fargo had, but he's confident under new leaders will do the right things. He expects high-double-digit returns in the coming 5 years. (Analysts’ price target is $83.57)

DON'T BUY

Another turnaround story, but not convincing like Wells Fargo is. Without a big reserve release, Citi's report last week would have disappointed. It has trouble controlling its expenses; they raised their expense forecast. Citi is up only 11% YTD.

DON'T BUY
They report next week. He's unsure of their earnings quality. They have a new CEO. It's a cheap stock, but he wouldn't buy it.
WEAK BUY
It'll rise, but not as much. Today, the U.S. banks are allowed again to buyback shares and raised dividends, but Citi didn't announce it would do either. Disappointing. Shares are cheap, but won't rise as much as he expected if they were buying back shares.
PARTIAL SELL
Dividend and valuation are both still good. Earnings were unbelievable relative to where the stock is trading at. On a PEG basis, it is interesting. Looking at 2023 growth, it comes down a lot so there will be a time to sell the banks. One could shave a little now. They are cyclical names.
COMMENT

A turnaround play. The big catalyst that is coming up is the restrictions put on the company. It should come off later in the year. CitiGroup is also another good choice. They can increase their dividends and start buybacks once rules change.

TOP PICK
Risk-reward, this is super cheap. Not back to pre-covid levels or even 2008/2009 levels. GDP is growing well in the US and has good international exposure. 23% earnings growth is expected, trading at 9x 2022. This name is compelling on price to growth. (Analysts’ price target is $79.23)
BUY
The expected US consumer spending boom We're going to overshoot on the upside. People will outdo everything. Banks have such clear exposure to the US economy and consumer opening up with pent-up demand. Citibank remains 15% below pre-Covid levels and so are its peers. There's a lot of rotation left to go. Industrials and transports are at all-time highs.
TOP PICK
Financials are part of the recovery script. We are seeing a steeper yield curve and slightly higher rates. Value leads over growth after a recession. Q3 was solid but there was litigation that overshadowed it. Investors can look forward to this changing soon. 60% EPS growth next year. (Analysts’ price target is $66.98)
TOP PICK
Loathed name, not sexy. Huge move off the bottom on Monday. Trading at levels similar to financial crisis. Crushed Q3 earnings. Estimates 60% earnings growth. Lots of upside. Yield is 4.27%.
COMMENT
Just because interest rates are low, it does not necessarily mean that it is all bad for financial institutions. The rate curves have been steepening which bodes well for banks in net interest rate margins. We will see a return of financials with a gradual return. There has also been good off-set from the sales and trading, and issuance side. There may be further scrutiny with their recent regulatory issues.
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