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5 Reasons Why You Should Add Citigroup (C) to Your Portfolio
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Citigroup (C - Free Report) appears to be a solid bet right now because of its sound organic growth strategies. Also, the company witnessed prudent expense management along with increasing loan and deposit balances, over the last few years. Moreover, the improving economic backdrop, such as rising interest rates and tax reform, are likely to further support its financials.
Shares of Citigroup have gained 27% over the past year, outperforming the 17.6% growth for the industry it belongs to.
Also, the Zacks Consensus Estimate for its current-year earnings have been revised 1.1% upward, over the past 30 days. As a result, the stock carries a Zacks Rank #2 (Buy).
Here is why Citigroup stock seems worth buying:
Earnings Per Share Growth: Over the past three to five years, Citigroup witnessed earnings per share (EPS) growth of 5.45%. Notably, the company also delivered an average positive earnings surprise of 7.45%, over the trailing four quarters.
Also, earnings momentum is likely to continue in the near term as reflected by the company’s projected EPS growth rate of 20% for the current year.
Impressive Balance Sheet Growth: The company’s loans and deposits have witnessed a CAGR of 4% and 2.8%, respectively, over a three-year period (ended 2017). This keeps Citigroup well poised for any opportunistic acquisitions in the future.
Prudent Expense Management: The New York-based lender has been successful in reducing expenses at a CAGR of 9.2% over the last four years (ended 2017), with the help of branch closures and wind-down of legacy assets. Such cost management initiatives will support the bank’s bottom-line growth.
Impressive Capital Deployment: The company doubled its common stock dividend in July 2017. Also, it has a share repurchase program of up to $15.6 billion in place. These activities reflect its capital strength and commitment toward rewarding shareholders.
Stock Seems Undervalued: The stock currently has a Value Score of B. Also, it looks undervalued with respect to its price-to-book and price-to-earnings (F1) ratios. The company’s trailing 12-month P/B and P/E ratios of 1.07 and 11.95, respectively, are below the industry average of 1.60 and 13.74.
The Zacks Consensus Estimate for PNC Financial has moved up 1.3% for the current year, in the last 30 days. The company’s share price has increased 25.9% in the past year.
State Street has witnessed 5.1% upward earnings estimate revision for 2018, in the last 30 days. Its share price has risen 30.2% in the past year.
Northern Trust’s shares have gained 20.1% in a year and its earnings estimates for 2018 have moved up 2.7% in the last 30 days.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
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5 Reasons Why You Should Add Citigroup (C) to Your Portfolio
Citigroup (C - Free Report) appears to be a solid bet right now because of its sound organic growth strategies. Also, the company witnessed prudent expense management along with increasing loan and deposit balances, over the last few years. Moreover, the improving economic backdrop, such as rising interest rates and tax reform, are likely to further support its financials.
Shares of Citigroup have gained 27% over the past year, outperforming the 17.6% growth for the industry it belongs to.
Also, the Zacks Consensus Estimate for its current-year earnings have been revised 1.1% upward, over the past 30 days. As a result, the stock carries a Zacks Rank #2 (Buy).
Here is why Citigroup stock seems worth buying:
Earnings Per Share Growth: Over the past three to five years, Citigroup witnessed earnings per share (EPS) growth of 5.45%. Notably, the company also delivered an average positive earnings surprise of 7.45%, over the trailing four quarters.
Also, earnings momentum is likely to continue in the near term as reflected by the company’s projected EPS growth rate of 20% for the current year.
Impressive Balance Sheet Growth: The company’s loans and deposits have witnessed a CAGR of 4% and 2.8%, respectively, over a three-year period (ended 2017). This keeps Citigroup well poised for any opportunistic acquisitions in the future.
Prudent Expense Management: The New York-based lender has been successful in reducing expenses at a CAGR of 9.2% over the last four years (ended 2017), with the help of branch closures and wind-down of legacy assets. Such cost management initiatives will support the bank’s bottom-line growth.
Impressive Capital Deployment: The company doubled its common stock dividend in July 2017. Also, it has a share repurchase program of up to $15.6 billion in place. These activities reflect its capital strength and commitment toward rewarding shareholders.
Stock Seems Undervalued: The stock currently has a Value Score of B. Also, it looks undervalued with respect to its price-to-book and price-to-earnings (F1) ratios. The company’s trailing 12-month P/B and P/E ratios of 1.07 and 11.95, respectively, are below the industry average of 1.60 and 13.74.
Other Stocks Worth a Look
Some other stocks worth considering in the same space are The PNC Financial Services Group (PNC - Free Report) , State Street Corporation (STT - Free Report) and Northern Trust Corporation (NTRS - Free Report) . All these stocks carry a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for PNC Financial has moved up 1.3% for the current year, in the last 30 days. The company’s share price has increased 25.9% in the past year.
State Street has witnessed 5.1% upward earnings estimate revision for 2018, in the last 30 days. Its share price has risen 30.2% in the past year.
Northern Trust’s shares have gained 20.1% in a year and its earnings estimates for 2018 have moved up 2.7% in the last 30 days.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>