Citigroup: Expecting A Strong Q2 But Shares Aren't Cheap Here

Summary

  • I maintain a hold rating on Citigroup heading into Q2 earnings.
  • While the Banamex divestiture could unlock value, Citi's overall profitability and return metrics remain lackluster compared to other big banks.
  • Citigroup is no longer a deep value play. Its price-to-book discount has narrowed, making further upside dependent on operational improvements.
  • Despite potential for a strong Q2, I remain cautious due to macroeconomic risks and Citi's relative underperformance on key financial metrics.
  • Looking for a helping hand in the market? Members of Ian's Insider Corner get exclusive ideas and guidance to navigate any climate. Learn More »

Citibank Branch, Manhattan, New York

GCShutter

Earnings season is upon us once again. The U.S. big banks are set to kick off with their Q2 reports over the coming week. That includes Citigroup Inc. (NYSE:C) (NEOE:CITI:CA), which is set to

If you enjoyed this, consider Ian's Insider Corner to enjoy access to similar initiation reports for all the new stocks that we buy. Membership also includes an active chat room, weekly updates, and my responses to your questions.

This article was written by

22.91K Followers

Ian Bezek is a former hedge fund analyst at Kerrisdale Capital. He has spent the decade living in Latin America, doing the boots-on-the ground research for investors interested in markets such as Mexico, Colombia, and Chile. He also specializes in high-quality compounders and growth stocks at reasonable prices in the US and other developed markets.

Ian leads the investing group Ian's Insider Corner. Features of the group include: the Weekend Digest which covers everything from new ideas to updates on current holdings and macro analysis, trade alerts, an active chat room, and direct access to Ian. Learn More.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

About C Stock

SymbolLast Price% Chg
Market Cap
PE
Yield
Rev Growth (YoY)
Short Interest
Prev. Close
Compare to Peers

More on C

Related Stocks

SymbolLast Price% Chg
C
--
CITI:CA
--