#6 - Citigroup (NYSE:C)
The Federal Reserve is now signaling there may be as many as four rate increases in 2022. While that may be negative for equities in general, it’s likely to be good news for financial stocks. Citigroup (NYSE:C) is one stock that stands to benefit. Analysts give the stock a 12-month price target that gives investors a 17% upside. And for the valuation crowd, Citigroup has one of the lowest P/E ratios in the banking sector at 6.33.
In the short term, C stock may be under pressure as analysts attempt to forecast the effect on earnings after the company announced it will exit its consumer banking business in Mexico which accounted for $3.5 billion of revenue in the first three quarters of 2021. At least initially, analysts believe the move will benefit the firm’s banking operations.
However, with interest rates on the rise, the company should be able to continue to increase shareholder value through increasing dividends and share repurchases. This is something that the company has suggested they would do more of once the Federal Reserve’s regulations were lifted.
About Citigroup
Citigroup Inc, a diversified financial service holding company, provides various financial product and services to consumers, corporations, governments, and institutions worldwide. It operates through five segments: Services, Markets, Banking, U.S. Personal Banking, and Wealth. The Services segment includes Treasury and Trade Solutions, which provides cash management, trade, and working capital solutions to multinational corporations, financial institutions, and public sector organizations; and Securities Services, such as cross-border support for clients, local market expertise, post-trade technologies, data solutions, and various securities services solutions.
Read More - Current Price
- $70.35
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 11 Buy Ratings, 5 Hold Ratings, 1 Sell Ratings.
- Consensus Price Target
- $73.00 (3.8% Upside)
