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With a market cap of $136.3 billion, Citigroup Inc. (C) is a globally diversified financial services holding company that provides financial products and services to consumers, corporations, governments, and institutions. It operates through five segments: Services, Markets, Banking, U.S. Personal Banking, and Wealth, offering solutions such as investment banking, securities brokerage, and wealth management.
Companies valued at $10 billion or more are generally described as “large-cap” stocks, and Citigroup fits right into that category. Operating in over 160 countries and jurisdictions, the company serves approximately 200 million customer accounts worldwide.
Shares of the New York-based company are trading 14.2% below its 52-week high of $84.74, reached on Feb. 18. The banking giant has gained marginally over the past three months, outperforming the broader Dow Jones Industrials Average’s ($DOWI) 4.7% decline over the same time frame.
In the longer term, C stock is up over 3% on a YTD basis, surpassing DOWI’s marginal rise. In addition, Citigroup’s 28.9% gain over the past 52 weeks, compared to DOWI’s 10.6% returns over the same time frame.
Despite a few fluctuations, Citigroup has consistently traded above its 50-day and 200-day moving averages since last year.
Shares of Citigroup surged 6.5% on Jan. 15 due to stronger-than-expected Q4 2024 earnings, with EPS of $1.34 beating analyst estimates. Revenue grew 12% year-over-year to $19.6 billion, driven by strong performance in the Services and Markets segments, with Fixed Income Markets revenue jumping 37%. Operating expenses dropped 18% to $13.2 billion, while the cost of credit declined 27% to $2.6 billion, signaling better expense management and lower credit losses. Additionally, Citigroup announced a $20 billion stock buyback program, reinforcing investor confidence.
However, C has slightly underperformed its rival, Wells Fargo & Company (WFC), which gained 29.7% over the past 52 weeks and a 4.5% YTD return.
Despite Citigroup’s outperformance relative to the Dow, analysts remain cautiously optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from the 20 analysts covering the stock, and as of writing, C is trading below its mean price target of $91.28.
