Is Citigroup Stock a Buy Now?
Shares of Citigroup (NYSE: C) have outperformed at the start of 2025, returning a solid 4% year to date as of this writing, despite the stock market turbulence. The megabank has managed to brush aside uncertainties regarding the looming impact of sweeping changes to U.S. trade policy, while capitalizing on resilient economic conditions. Several strategic initiatives implemented in recent years appear to be paying off, supporting steady growth and climbing profitability.
Do these positive trends make Citigroup stock a buy now?
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
Citigroup's strong start to 2025
Citigroup has undergone a significant transformation in recent years under the leadership of CEO Jane Fraser. The bank remains one of the world's largest financial institutions, with a diversified global franchise, yet it has taken significant steps to streamline its international operations. Efforts to divest noncore businesses, while investing in high-margin segments, have bolstered the bank's balance sheet and helped it generate more sustainable growth.
The results were on full display when Citigroup's first-quarter earnings for the period ended March 31 exceeded Wall Street expectations. Total revenue climbed by 3% year over year, while a 5% decline in operating expenses helped propel earnings per share (EPS) to $1.96, an increase of 24%.
All five of the bank's business segments contributed to the strong performance, showcasing Citigroup's ability to leverage synergies across its interconnected businesses. Citigroup's wealth management achieved a notable 24% revenue increase, capturing client asset growth. U.S. Personal Banking has also been a bright spot, with momentum in branded credit cards and a favorable deposit interest rate spread. The markets group revenue climbed by 12% from last year amid robust fixed income and equities trading activity.
Resiliency through tariff uncertainties
The macroeconomic environment has shifted in the second quarter, as the Trump administration implements tariffs on imported goods into the United States. Although various exemptions, deadline extensions, and ongoing negotiations have been announced, experts warn that the policy may cause short-term economic challenges.
For Citigroup, clients may grow cautious and reassess investment opportunities, marking a slowdown in the business. There are already signs that investment banking activity has stalled as corporations hold off on major deals.
On the other hand, some segments could benefit from the trade chaos, at least helping to offset declines in fees elsewhere. Citigroup's Treasury and Trade Solutions (TTS) business, which handles cash management and working capital solutions, could capture new business opportunities as corporate customers move to reroute their supply chains or require hedging foreign exchange.
That was the message from management, citing the bank's capital strength and strong reserves supporting its ability to navigate any market environment. For full-year 2025, the bank is guiding for revenue between $83.1 billion and $84.1 billion, representing an increase of 2% to 3% compared to 2024, projecting confidence in its diversified business model.
A compelling valuation
While some caution toward the banking industry is justified, Citigroup as a potential investment stands out through its attractive value. The stock is trading at just 0.7 times its book value and 10 times its consensus 2025 earnings per share estimate as a forward price-to-earnings (P/E) ratio, both at a steep discount to megacap banking peers like JPMorgan Chase, Bank of America, and Wells Fargo.
Amid Citigroup's ongoing turnaround and strengthened fundamentals compared to its historical challenges in the past decade, there is a case to be made that it is fundamentally undervalued, with room for its valuation gap to narrow, potentially driving share price appreciation.
C Price to Book Value data by YCharts
Citigroup stock also shines with its 3% dividend yield, notably higher than Bank of America's 2.3%. The $0.56-per-share quarterly payment is supported by underlying cash flows and a robust balance sheet, making it a solid choice for income-focused investors.
C Dividend Yield data by YCharts
Decision time: The rally can keep going
There's a lot to like about Citigroup, which is well-positioned to continue rewarding shareholders. With some optimism toward the U.S. economy, I'm bullish on this banking leader and predict its stock price will be higher by this time next year. Shares remain a great option within diversified portfolios.
Should you invest $1,000 in Citigroup right now?
Before you buy stock in Citigroup, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Citigroup wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $651,761!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $826,263!*
Now, it's worth noting Stock Advisor 's total average return is978% — a market-crushing outperformance compared to170%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor.
See the 10 stocks »
*Stock Advisor returns as of May 19, 2025
Wells Fargo is an advertising partner of Motley Fool Money. Bank of America is an advertising partner of Motley Fool Money. Citigroup is an advertising partner of Motley Fool Money. JPMorgan Chase is an advertising partner of Motley Fool Money. Dan Victor has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bank of America and JPMorgan Chase. The Motley Fool has a disclosure policy.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Globe and Mail
24 minutes ago
- Globe and Mail
NOVAGOLD and Paulson Advisers Complete $1 Billion Acquisition of Barrick Mining's 50% Interest in Donlin Gold
Paulson Advisers acquires a 40% ownership interest in Donlin Gold NOVAGOLD increases ownership interest in Donlin Gold from 50% to 60% Financial public offering and concurrent private placement raised sufficient funding for NOVAGOLD's acquisition and for the Donlin Gold Feasibility Study update All amounts are in U.S. dollars unless otherwise stated VANCOUVER, British Columbia, June 03, 2025 (GLOBE NEWSWIRE) -- NOVAGOLD RESOURCES INC. ('NOVAGOLD') (NYSE American, TSX: NG) and Paulson Advisers LLC ('Paulson') are pleased to announce the successful closing of their previously disclosed acquisition of Barrick Mining Corporation's ("Barrick's") 50% interest in the Donlin Gold project, establishing new ownership of Donlin Gold LLC to advance the Donlin Gold project in Alaska. At closing, NOVAGOLD acquired an additional 10% in Donlin Gold LLC for $200 million — increasing its stake to 60% — while Paulson secured a 40% interest in Donlin Gold LLC for $800 million. NOVAGOLD and Paulson entered into a new limited liability company agreement governing Donlin Gold with equal governance rights. 'Today we completed the successful and strategic Donlin Gold transaction through a strong collaborative effort between NOVAGOLD, Paulson, and Barrick since announcing the transaction on April 22, 2025,' said Greg Lang, NOVAGOLD's President and CEO. 'This constitutes a truly transformational transaction and an exciting new chapter for Donlin Gold as we advance one of the best and most jurisdictionally attractive gold development projects in the world. We look forward to providing updates on the key milestones in the coming months, starting with our revamped and determined efforts regarding the Feasibility Study workstream.' As of March 1, 2025, pro forma the upsized public offering and private placement which closed on May 9, 2025, NOVAGOLD had $327M to fund the acquisition of the additional 10% stake in Donlin Gold LLC and the Company's share of ongoing activities at Donlin. NOVAGOLD has opted not to prepay the outstanding debt owed to Barrick in connection with the Donlin Gold project for $90 million upon closing, but it retains the option to prepay the outstanding debt for $100 million within 18 months from closing, when the option expires. If that option is not exercised, the debt, currently valued at $158.9 million as of June 3, 2025, will remain outstanding, substantially in accordance with its existing terms (U.S. prime plus 2% compounded semi-annually). In coordination with Paulson, a strategic review of the Donlin Gold 2025 budget ($43 million on a 100% basis) will be completed while advancing the following activities: Commencing the workstream to update the Feasibility Study 1, including assembling a specially dedicated team to advance these efforts; Executing the 2025 drill program focused on the conversion and expansion of reserves and resources, with both partners committed to exploring for new resources along strike and to depth in future campaigns; Advancing the technical work and engineering designs; Supporting state permitting efforts and maintaining existing federal and state permits in good standing, including government affairs engagement with federal and state representatives; and Collaborating on ongoing stakeholder outreach and investment initiatives in Alaska. About NOVAGOLD NOVAGOLD is a precious metals company focused on the development of the Donlin Gold project. Located in Alaska, one of the safest mining jurisdictions in the world, the Donlin Gold project is regarded as one of the largest, highest-grade, and most prospective known open-pit gold deposits in the world. About Paulson Paulson is a private global investment management advisory firm based in Palm Beach, Florida. NOVAGOLD Contacts: Mélanie Hennessey Vice President, Corporate Communications 604-669-6227 or 1-866-669-6227 Frank Gagnon Manager, Investor Relations 778-990-0299 or 1-866-669-6227 Paulson Contact: Michael McKeon mmckeon@ Cautionary Note Regarding Forward-Looking Statements This media release includes certain 'forward-looking information' and 'forward-looking statements' (collectively 'forward-looking statements') within the meaning of applicable securities legislation, including the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements include future-oriented financial information or financial outlook within the meaning of securities laws, including information regarding the anticipated benefits of the transaction with Paulson, NOVAGOLD's anticipated expenditures and anticipated plans for the new partnership and Donlin following the completion of the transaction, statements regarding the permitting, potential development, exploration, construction and operation of Donlin Gold and statements relating to NOVAGOLD's future operating and financial performance and production estimates. Such information is intended to assist readers in understanding NOVAGOLD's current expectations and plans relating to the future. Such information may not be appropriate for other purposes. Forward-looking statements are frequently, but not always, identified by words such as 'expects', 'continue', 'ongoing', 'anticipates', 'believes', 'intends', 'estimates', 'potential', 'possible', and similar expressions, or statements that events, conditions, or results 'will', 'may', 'could', 'would' or 'should' occur or be achieved. Forward-looking statements are necessarily based on several opinions, estimates and assumptions that management of NOVAGOLD considered appropriate and reasonable as of the date such statements are made, are subject to known and unknown risks, uncertainties, assumptions, and other factors that may cause the actual results, activity, performance, or achievements to be materially different from those expressed or implied by such forward-looking statements. All statements, other than statements of historical fact, included herein are forward-looking statements. These forward-looking statements include statements regarding plans for and anticipated timing a new feasibility study on the Donlin Gold project; plans for and anticipated timing of a strategic review of Donlin Gold's 2025 budget our goals and planned activities for 2025; anticipated timing of milestone and project updates; ongoing support provided to key stakeholders including Native Corporation partners; Donlin Gold's continued support for the state and federal permitting process; sufficiency of working capital; the potential development and construction of the Donlin Gold project; the timing and ability for the Donlin Gold project to hit critical milestones; the ability for the Tier One gold development project to hit the anticipated projections; the sufficiency of funds to continue to advance development of Donlin Gold, including to a construction decision; perceived merit of properties; mineral reserve and mineral resource estimates; Donlin Gold's ability to secure the permits needed to construct and operate the Donlin Gold project in a timely manner, if at all; legal challenges to Donlin Gold's existing permits and the timing of decisions in those challenges; plans to continue to advance the Donlin Gold project safely, socially responsibly and to sustainably generate value for our stakeholders; continued cooperation between the owners of Donlin Gold LLC to advance the project; NOVAGOLD's ability to deliver on its strategy with the Donlin Gold project; the success of the strategic mine plan for the Donlin Gold project; the success of the Donlin Gold community relations plan; the anticipated outcome of exploration drilling at the Donlin Gold project and the timing thereof; the completion of test work and modeling and the timing thereof. In addition, any statements that refer to expectations, intentions, projections or other characterizations of future events or circumstances are forward-looking statements. Forward-looking statements are not historical facts but instead represent the expectations of NOVAGOLD management's estimates and projections regarding future events or circumstances on the date the statements are made. Important factors that could cause actual results to differ materially from expectations include failure to satisfy or waive the closing conditions to the transaction; the need to obtain additional permits and governmental approvals; the timing and likelihood of obtaining and maintaining permits necessary to construct and operate; the need for additional financing to complete an updated feasibility study and to explore and develop properties and availability of financing in the debt and capital markets; disease pandemics; uncertainties involved in the interpretation of drill results and geological tests and the estimation of reserves and resources; changes in mineral production performance, exploitation and exploration successes; changes in national and local government legislation, taxation, controls or regulations and/or changes in the administration of laws, policies and practices, expropriation or nationalization of property and political or economic developments in the United States or Canada; the need for continued cooperation between the owners of Donlin Gold LLC to advance the project; the need for cooperation of government agencies and Native groups in the development and operation of properties; risks of construction and mining projects such as accidents, equipment breakdowns, bad weather, disease pandemics, non-compliance with environmental and permit requirements, unanticipated variation in geological structures, ore grades or recovery rates; unexpected cost increases, which could include significant increases in estimated capital and operating costs; fluctuations in metal prices and currency exchange rates; whether or when a positive construction decision will be made regarding the Donlin Gold project; and other risks and uncertainties disclosed in NOVAGOLD's most recent reports on Forms 10-K and 10-Q, particularly the 'Risk Factors' sections of those reports and other documents filed by NOVAGOLD with applicable securities regulatory authorities from time to time. Copies of these filings may be obtained by visiting NOVAGOLD's website at or the SEC's website at or on SEDAR+ at The forward-looking statements contained herein reflect the beliefs, opinions and projections of NOVAGOLD on the date the statements are made. NOVAGOLD assumes no obligation to
CTV News
31 minutes ago
- CTV News
‘Thank God, that is all I can say:' Doug Ford suggests Eglinton LRT could open in September
After running roughly $1B over budget and being plagued by delays, Ont. Premier says the Eglinton LRT could be complete in the coming weeks.
CTV News
37 minutes ago
- CTV News
High costs delay Albertans from accessing health care: report
Many Canadians, including 60 per cent of Albertans, are delaying or skipping health appointments because of high costs, a new report says. (Pexels/Mikhail Nillov) A growing number of Albertans are skipping or delaying health care appointment because they can't afford treatment, a new report says. The 2025 Insurance Access and Affordability Study, released by PolicyMe in partnership with Angus Reid on Tuesday, states that high costs are a barrier for many people seeking health care, including those who have insurance. The study found 56 per cent of Canadians are putting off appointments because they're too expensive. PolicyMe, a Toronto-based insurance company, says some are even skipping appointments entirely. When it comes to Alberta, the report found 60 per cent of residents admitted to skipping, delaying or reducing the frequency of their appointments. Many Albertans (64 per cent) are also paying out-of-pocket for dental care, followed by vision care (60 per cent) and prescription drugs (56 per cent). Only four per cent of Albertans use the Canadian Dental Care Plan to cover costs, the report said. 'These numbers paint a clear picture: even as more benefits exist on paper, affordability continues to be a real barrier to accessing care, especially for those early in their careers,' the company said. 'Once they do secure coverage, however, the need is immediate. Over 50 per cent of PolicyMe customers submit a claim within the first 90 days, a strong signal that many are addressing long-delayed health care as soon as they're able.' PolicyMe says many Canadians do have health insurance, but older residents are the most likely to not be insured. Twenty-one per cent of residents over 55 years old have no health or dental coverage, the company said. Furthermore, PolicyMe said 36 per cent of Canadians feel that economic instability could risk reducing or eliminating their insurance coverage. The survey was conducted online from May 9 to 12 using a sample of 1,502 Canadians who are members of the Angus Reid Forum. The sample size has a margin of error of +/- 2.53 percentage points 19 times out of 20.
