Is Citigroup Inc (C) A Value Play?

Page 1 of 2

Citigroup Inc (NYSE:C) has long been hailed as the bank that delivers results. Citigroup did exceptionally well in passing the “Stress Test”; it passed with flying colors. The bank posted an 8.3% Tier 1 common-capital ratio, the highest in its respective industry. These tests show how banks would do under severe economic conditions.

Citigroup Inc (NYSE:C)

This is just one of the many exceptional qualities that Citigroup possesses as of right now. In the past, Citigroup Inc (NYSE:C) also managed to gain a certain amount of negative press, but it has slowly started to recover from that. All of these signs point to recovery, and below are some additional reasons as to why Citigroup will skyrocket.

Dividend payouts

Many analysts are expecting Citigroup to announce a sizable dividend of more than $0.10/share. Citigroup certainly has the means to do so; it currently has approximately $400 billion in cash. With its dividend currently at $0.04, Citigroup is not attractive as a stock. Many other companies offer a much better payout.

Citigroup Inc (NYSE:C) has finally comprehended this and is most likely going to increase its dividend payout. Citigroup also has the means to initiate a share buyback program, which would in turn attract more investors. These are the two major reasons that would point to a much higher share price.

Fundamentals

Citigroup’s historic price chart displays the exhilarated price rise and fall, especially since 2008. But since then, Citigroups’s price has ameliorated far beyond anyone’s expectations. Citigroup Inc (NYSE:C)’s stock price has gone up $15.37/share, or 48.6%. The stock has not gone up on speculation but rather potential.

Wall Street expects Citigroup to continue to do exceptionally well in the coming days. Its earnings per share have risen quarter-over-quarter from $1.00 (July 16, 2012) to $1.06 (Oct. 15, 2012). For the past two quarters, Citigroup has also exceeded Wall Street expectations of $0.89/share and $0.96/share, respectively.

For the past three quarters, Citigroup Inc (NYSE:C)’s net income has tripled each quarter. Citigroup has a phenomenal balance sheet; its triumph at cutting costs, improved asset position and the probability of higher capital returns are all huge positives going forward.

Catalysts

I am sure that many of you know that Citigroup provides banking and investing services. With the housing market skyrocketing, it can experience more capital gains. Citigroup Inc (NYSE:C) has $481 billion in cash and cash equivalents. The bank is successfully cutting costs and improving its capital position. This should allow for an increase in its dividend, and for Citigroup to gain approval for its share-buyback program, which would be the first such program since 2007.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The 10 Countries with the Highest Suicide Rates

The 10 Most Technologically Advanced Countries in the World

The 10 Safest Countries in the World to Live in Peace

The 10 Top Selling Smartphones in the World 2014

The 12 Biggest Shopping Centers in the World

The 10 Friendliest Countries in the World

Qihoo 360 Technology Co Ltd (QIHU), Actavis plc (ACT), Yahoo! Inc. (YHOO) Among 20 Long Ideas from Sohn Canada

The 10 Laziest Countries in the World

The 10 Most Polluted Countries in the World

The 10 Most Dangerous Cities in America 2014

The Top 10 Gold Producing Countries in the World

The 10 Tallest Buildings in the World

The 10 Richest Stand Up Comedians in the World

The 10 Fattest Countries in the World

The 5 Best Summer Jobs for Teens

The 10 Most Religious Countries in the World Keeping the Faith

The 10 Most Educated Countries in the World

The 10 Most Popular Cell Phones in the World

The 10 Drunkest Countries in the World

The 10 Most Expensive Private Schools in the World

The 10 Smallest Countries in the World

Walking Dead Season 5 Spoilers You’ll Wish You Didn’t Know

The 10 Poorest Countries in the World

The 10 Greenest Countries in the World

The Top 10 Countries with the Highest Population in the World

The 10 Most Visited Countries in the World

The Top 10 Star Wars Characters in the Iconic Series

The 10 Most Expensive Android Phones in the World

5 Reasons Why The Illuminati Is Real and a Threat to Society

The 6 Scariest Halloween Costumes Ever Screamed At

The 4 Biggest Hedge Fund Managers in the World Today

The 15 Most Densely Populated Countries in the World

The 10 Biggest Tea Drinking Countries in the World

Top 6 Ways to Improve Your Checkout Process and Close Sales

The 5 Most Profitable Online Businesses You Can Start Today

The 20 Most Profitable Hospitals in the US

The 5 Most Profitable Home Businesses to Start

The 7 Teams that Will Win the Stanley Cup in 2015

The Top 10 Most Expensive Digital Cameras to Snap Stunning Shots With

The 10 Highest Quality Fast Food Restaurants In America Today

The 8 Best Halloween Decorating Ideas to Spook Up Your House

10 Marvel Women that Should Get a Movie Right Now

The 20 Best Remixes of Popular Songs that Will Make You Forget the Originals

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!