Question

Citigroup (C) stock has been up and down in the past year. Would buy/hold/ or sell this stock? Support with ideas analytics. Also state further in depth facts other than analytics to support your reasoning.

Answer 1

I will “buy” the stock of Citigroup.

Analytical reasons – The trailing twelve months (TTM) P/E of Citigroup’s stock is 10.42 and its TTM EPS is 6.87. When compared to its competitors the stock of Citigroup is not expensive. Bank of America’s P/E (on a TTM basis) is $11.16. American Express has a P/E ratio (on a TTM basis) of 14.39. Thus on a relative basis the stock of Citigroup is not trading at a premium and hence there is room for further upside for this stock given the growth rate predicted for its sales and for its EPS.

Other in depth facts – The stock of Citigroup is expected to see further traction in the future. The stock price will see an upward trend once the investors fear for the falling bond yields is alleviated. It should also be noted that the financial system in USA is now strong and robust when compared to the system and structure that existed before the 2008 financial crisis. There are systematic safeguards in place now and so the risk of economic headwinds for Citigroup is very limited and mostly controlled.