WFC - Citigroup: Bold Turnaround Efforts Paying Off Strong EPS Growth Expected
2024-06-02 11:45:11 ET
Summary
- Citigroup has outperformed the S&P 500 by nearly 25 percentage points since late last year as positive sentiment surrounds the once-boring big bank stock.
- The company is undergoing cost-cutting initiatives and seeking better capital market opportunities under CEO Jane Fraser, which appear to be paying off given 20%+ EPS growth expected next year.
- I assert that the stock is undervalued with a high dividend yield, and earnings growth and shareholder-friendly activities could support further bullish price action.
- I highlight key price levels to watch with earnings due out next month.
The Financials sector has been a quiet winner ever since the S&P 500 bottomed out in late October last year. Over the last 12 months, the Financials Select Sector SPDR ETF (XLF) is up 32% with dividends included, outpacing the SPX by some five percentage points. ...
Citigroup: Bold Turnaround Efforts Paying Off, Strong EPS Growth Expected