Why I'm Adding Citigroup To My Portfolio Today
- Citigroup just reported a blowout quarter, beating consensus estimates on revenue, expenses and earnings.
- A withdrawal of retail operations in 11 markets signals an easing of global growth and expansion plans and a renewed focus on expanding operating margins.
- Citigroup is more positively levered to interest rates than competitors like Wells Fargo and Bank of America.
- Citigroup trades at a forward P/E of just 9 and a 26% discount to book value.
- The March 2015 Fed stress test will be a key hurdle, but I expect the bank to pass and finally initiate its planned stock buyback and dividend increase.