3 Bargain Stocks – Citi Group
1-Citi Group
One of the bargain shares to consider is Citigroup. The stock, traded modestly at 10.6 times its future earnings, finds itself in a favorable position compared to 14 times JPMorgan Chase and Bank of America, which is traded around 15 times.
With the future of the economy in a positive direction, all three have increased in value by more than 70 percent over the past year.
When Citigroup posted its fourth quarter earnings on January 15, it barely announced earnings of $ 16.5 billion. This figure was below analysts’ expectations of $ 16.7 billion, but earnings per share were announced at $ 2.08, compared to $ 1.34.
The bank released its $ 1.5 billion loan loss reserve at a time that signaled confidence that the economy would be better. (It had increased its reserves by $ 436 million in the previous period.)
The bank renewed its optimistic expectations for 2021!
Citi predicts net interest income to decline by between $ 1 and $ 2 billion, but a significant improvement in profitability over the year. (due to a decrease in loan costs).
Citigroup is one of the most secure and top-notch bank stocks to invest in. With the economy moving to a better position, especially with the containment of the pandemic by vaccines, the low forward Price / Profit coefficient puts Citigroup in a risk-free option group. In addition, the 2.8 percent dividend yield it gives is an important incentive for buy and hold.
3 Bargain Stocks – Citi Group
Source: https://www.fool.com/
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