Latest news with #JaneFraser
Yahoo
3 days ago
- Business
- Yahoo
Is Citigroup Stock a Buy Now?
Citigroup is generating strong earnings amid efforts to improve operational and financial efficiency. The bank's diversified profile and robust balance sheet make it well positioned to navigate a more challenging economic environment. The stock trading at just 0.7 times its book value may be undervalued relative to its banking industry peers. 10 stocks we like better than Citigroup › 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? 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. 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. 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. 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. 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. Before you buy stock in Citigroup, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 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 is 978% — a market-crushing outperformance compared to 170% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . 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. Is Citigroup Stock a Buy Now? was originally published by The Motley Fool Error al recuperar los datos Inicia sesión para acceder a tu cartera de valores Error al recuperar los datos Error al recuperar los datos Error al recuperar los datos Error al recuperar los datos
Globe and Mail
3 days ago
- Business
- Globe and Mail
Did Warren Buffett Make a Mistake Selling This High-Yield Dividend Stock? Wall Street Thinks So.
Warren Buffett became a legend for his investing prowess. These days, though, the 94-year-old billionaire is disinvesting more than he's investing. Buffett's Berkshire Hathaway has been a net seller of stocks for 10 consecutive quarters. In the first quarter of 2025, Buffett & team reduced Berkshire Hathaway's holdings in six stocks. They also completely exited the conglomerate's positions in two stocks. Citigroup (NYSE: C) was one of them. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More » But did Buffett make a mistake selling this high-yield dividend stock? Wall Street thinks so. Buffett's about-face on a turnaround play Buffett first initiated a position in Citigroup in the first quarter of 2022, buying around 55.2 million shares. Although bank stocks seemed to have lost some of their luster in the eyes of the Oracle of Omaha, Citigroup probably looked like a good turnaround play to him. Shares of the financial services giant had fallen sharply in early 2022, and Citigroup was the only large U.S. bank that traded below its book value. CEO Jane Fraser faced a steep challenge to right the ship. But Buffett likes solid underlying businesses available at attractive valuations. He scooped up shares of Citigroup and waited for the comeback. At first, the decision to buy the struggling bank stock might have seemed unwise, as Citigroup's shares continued to decline throughout much of 2022 and 2023. Buffett didn't flinch, though. Berkshire even bought another 89,000 or so shares of Citigroup in the first quarter of 2023. Buffett's patience was rewarded beginning in late 2023. Citigroup, along with the overall stock market, gained momentum that lasted throughout 2024 and into early 2025. Buffett sold most of Berkshire's stake in the big bank in the fourth quarter of 2024 and fully exited the position in the following quarter. Why did he bail out on Citigroup? We don't know for sure. It could be that Buffett thought Citigroup's turnaround was complete. Whatever his reasoning, Buffett almost certainly locked in a tidy profit for Berkshire by selling the stock when he did. Analysts overwhelmingly disagree with Buffett's move However, Wall Street seems to think Buffett & team made a mistake by selling all of Berkshire Hathaway's Citigroup shares. Of the 22 analysts surveyed by LSEG in May, 16 rate the bank stock as a buy or strong buy. The others recommended holding Citigroup. This overwhelmingly bullish take on Citigroup isn't new, either. Throughout the first quarter of 2025, at least 75% of analysts surveyed by LSEG viewed the stock as a buy or a strong buy with no analysts recommending selling. Wall Street's consensus 12-month price target for Citigroup reflects an upside potential of nearly 12%. The most optimistic analyst surveyed by LSEG thinks the stock can soar almost 46% over the next 12 months. Even the most pessimist analyst only sees a downside of around 7%. Who's right about Citigroup: Buffett or Wall Street? Was Buffett right to sell Citigroup, or are the majority of Wall Street analysts right about buying the stock? My answer is... both are probably right. Let's first look at Wall Street's perspective. Analysts see a solid financial services company with rising revenue and profits. They see a stock that trades at only 10.3 times forward earnings estimates. They see a share price that's still more than 25% below book value. And analysts recognize how attractive Citigroup's forward dividend yield of nearly 3% is. When we take these factors into account, it's easy to understand why so many Wall Street analysts recommend buying Citigroup stock. The optimistic consensus 12-month price target also makes sense. However, let's try to see things from Buffett's eyes. The investing icon isn't as big a fan of bank stocks as he has been in the past. He's likely concerned about the impact of tariffs on the U.S. economy. As previously mentioned, Buffett probably made a nice profit for Berkshire on its Citigroup investment. It's not hard to appreciate why he and his team might have chosen to sell the stock when they did. The bottom line is that it can be the right move for one investor to buy a stock while simultaneously being the right move for another investor to sell the same stock. Should you buy Citigroup stock? Or should you sell it? It depends on your personal circumstances, investing goals, and risk tolerance. 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
Globe and Mail
3 days ago
- Business
- Globe and Mail
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.
Wall Street Journal
21-05-2025
- Business
- Wall Street Journal
Citi's Fraser Sees Broad Shift in Global Economy
Citigroup Chief Executive Jane Fraser says market activity suggests CEOs are delaying major decisions. (Mike Blake/Reuters)
Yahoo
20-05-2025
- Business
- Yahoo
Everyone owns crypto now — which feels safer amid the chaos
The gateway to cryptocurrency exposure just got a lot bigger. Coinbase (COIN), the $60 billion crypto exchange, has cemented its standing as the industry leader and entryway to the dicey world of digital currency. But in joining the ranks of the S&P 500, it's advanced the crypto world's years-long campaign to fuse itself to the global financial system. In one sense, it's a much-needed update. Legacy institutions are playing desperate catch-up to where people's money, attention, and interests reside. It also underscores the walking contradictions associated with the crypto world's rapid ascent. For all the talk of forging an alternative to centralized banking and investment, every announcement of a crypto business partnering with a legacy institution seems to offer a jolt of legitimacy — and the hope of numbers going up. By subscribing, you are agreeing to Yahoo's Terms and Privacy Policy But it's harder to take that line of criticism seriously when the straight-laced parts of the financial world look so unstable. In a recent blog post, Citibank CEO Jane Fraser described a "deeper confidence shock" arising from a new phase of globalization. In the face of bond market tremors and warnings of investors diversifying away from American assets, investing in more exotic properties doesn't seem as dangerous. In an era where big-name tickers can move like meme stocks and meme stocks move like alt coins, why not just cut to the chase and hold some of your own? That may seem frightening and irresponsible to some. But that's what makes Coinbase's S&P inclusion so meaningful. In a direct and indirect way, many more investors will be supporting the acceptance of various tokens and crypto businesses through their ownership of Coinbase shares, through ETFs and mutual funds. Over the past week, the stock has soared nearly 30%. The rise is even more dramatic when measured from the tariff doldrums of early April. Coinbase shares have climbed 75% since then, mirroring bitcoin's recovery from recent lows. The company's S&P inauguration comes amid a double whammy of a hack disclosure and a report of an ongoing SEC probe. That feels like an achievement rolled into a setback. And it is. Trying to figure out what this means for crypto in an uncertain trade war thaw also points to ambivalence. President Trump is set to host a dinner this week for the top buyers of his crypto token $TRUMP, which has raised widespread criticism over potential conflicts of interest. Depending on your perspective, that's a distraction, a microcosm of the broader crypto ecosystem, or just another storyline in a strange, new world. Crypto diehards, perhaps reinvigorated by Coinbase's elevation, can point to bitcoin's price chart this year and make the case that it's finally behaving like an inflation hedge or a digital gold as the stock market trembles. You don't have to believe them. And maybe you shouldn't. But they now have a little more of your money on their side. Hamza Shaban is a reporter for Yahoo Finance covering markets and the economy. Follow Hamza on X @hshaban. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
