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With a market cap of $114.5 billion, New York-based Citigroup Inc. (C) is a global financial services company offering various services such as consumer banking, investment banking, securities brokerage, and wealth management. It serves a wide range of clients, including individuals, corporations, and governments.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and Citigroup fits right into that category. With a market cap that surpasses the threshold, Citigroup's substantial size, stability, and dominance in the banking sector is undeniable. The bank's robust brand and reputation draw customers and investors globally. Operating in 160+ countries diversifies Citigroup’s revenue and expands its market share. Diverse product offerings reduce market fluctuation risks.
Despite the positives, the banking powerhouse’s shares are down 7.6% from their 52-week high of $64.98, achieved on May 22. However, C stock has soared 4.5% over the past three months, compared to the Nasdaq Bank ETF’s (FTXO) marginal dip over the same time frame.
In the longer term, C stock is up 16.7% on a YTD basis and has surged 23.9% over the past 52 weeks. By contrast, the FTXO is up 2.2% in 2024 and 18.7% over the past year, trailing behind C’s returns.
To confirm the bullish price trend, Citigroup shares have consistently traded over their 100-day and 200-day moving averages since late November.
Despite facing significant challenges such as a high-interest environment, regulatory hurdles, and workforce issues, Citigroup has positioned itself strongly through strategic initiatives like simplifying operations, divesting non-core assets, and implementing cost-cutting measures. These efforts include selling off international consumer businesses in nine of the 14 regions, restructuring into five core units, and preparing for an IPO of its Mexican consumer business by 2025, alongside restarting the sale of its Polish business.
The bank's proactive steps paid off in its Q1 earnings report on April 12. Its earnings of $1.58 per share beat Wall Street expectations by 22.5%, and revenue of $21.1 billion surpassed by 3.4%. Despite this success, Citi's shares pulled back in the following three trading sessions.
To underscore the stock's mixed performance, it's worth comparing its price movement with that of its competitor, JPMorgan Chase & Co. (JPM), whose shares have surged by 35.8% over the past 52 weeks and 12.6% on a YTD basis.
Aligning with Citigroup’s mixed price performance, analysts are moderately optimistic about its future. The stock has a consensus rating of “Moderate Buy” from the 22 analysts covering it, and its mean price target of $65.64 reflects an upside potential of 9.4% from the current price level.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
