Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Here's Why You Should Buy Citigroup (C) Stock Right Now

Published 03/05/2018, 08:51 PM
Updated 07/09/2023, 06:31 AM

Citigroup (NYSE:C) exhibits mixed prospects for revenue growth, but cost-saving initiatives are expected to support bottom-line growth. However, litigation issues remain a concern.

Expense management and streamlining operations internationally aided the company to surge 23% over the past year compared with 15% growth registered by the industry.

Moreover, the company’s earnings estimates have been revised slightly upward, for the current year, over the last 30 days. As a result, the stock carries a Zacks Rank #2 (Buy).


Citigroup has been emphasizing on growth in core businesses. Further, the company continues to optimize its branch network, with focus on core urban markets, improving digital channels and reducing branches. It is also making investment in several areas to stoke growth. Additionally, the ongoing investments in branded cards support the company’s growth strategy.

The company’s operating expenses witnessed a negative CAGR of 9.2% over four years (2014-2017). Expenses dropped as the impact of higher volume-related expenses and ongoing investments were more than offset by efficiency savings and wind-down of legacy assets.

Though revenues remained volatile over the past few years, the company recorded 2% year-over-year improvement in 2017. We expect the bank to record significant growth in revenues in the near term, backed by continued economic recovery and focus on core operations with strategic actions. Notably, for 2018, management projects top-line growth at around 3%, with stronger growth in operating businesses being offset by the persistent wind down of legacy assets.

Stocks to Consider

Comerica Incorporated (NYSE:CMA) has been witnessing upward estimate revisions for the last 60 days. Further, the stock surged more than 53.4% over the past six months. It currently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Northern Trust Corporation (NASDAQ:NTRS) has been witnessing upward estimate revisions for the last 60 days. Also, the company’s shares have risen nearly 22.5% over the last six months. It currently carries a Zacks Rank #2.

BB&T Corporation (NYSE:BBT) has been witnessing upward estimate revisions for the last 60 days. Over the last six months, the company’s share price has been up more than 25%. It carries a Zacks Rank #2.

Wall Street’s Next Amazon (NASDAQ:AMZN)

Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.

Click for details >>



BB&T Corporation (BBT): Free Stock Analysis Report

Comerica Incorporated (CMA): Free Stock Analysis Report

Citigroup Inc. (C): Free Stock Analysis Report

Northern Trust Corporation (NTRS): Free Stock Analysis Report

Original post

Zacks Investment Research

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.