10 Most Profitable Cheap Stocks to Buy Now

5. Citigroup Inc. (NYSE:C)

Forward P/E: 9.38

TTM Net Income: $12.15 Billion

Number of Hedge Fund Holders: 101

Citigroup Inc. (NYSE:C), or simply Citi, is an American multinational investment bank and financial services company that operates as a global bank for institutions with cross-border needs, a global leader in wealth management, and a personal bank in the US. The company does business in over 180 countries and jurisdictions to serve individuals, investors, corporations, institutions, and governments with a wide range of financial products and services. Citigroup Inc. (NYSE:C) is one of the most profitable stocks to invest in.

On April 16, RBC Capital Markets reduced its price target on Citigroup Inc. (NYSE:C) from $85 to $78 but maintained an “Outperform” rating. This decision came after the company’s latest quarterly earnings beat both RBC Capital’s and the broader market’s expectations. RBC analyst Gerard Cassidy noted that Citigroup Inc. (NYSE:C) has managed well despite uncertain global market conditions and that the bank’s management is confident about achieving their medium-term financial goal, which is a return on tangible common equity (ROTCE) of 10-11% by 2026. This target will be an improvement compared to the 9.1% ROTCE reported in Q1 2025. The company’s Services division was the strongest as it boasted a 26% ROTCE, while other notable segments were Markets, US Personal Banking, Banking, and Wealth Management with ROTCEs of 14%, 13%, 11%, and 9.4%, respectively. Cassidy believes that for Citigroup Inc. (NYSE:C) to achieve its financial goals, it will depend on steady revenue growth and strict expense management. The analyst indicated that while the targets look achievable on paper, the key to success will depend on how well Citigroup Inc. (NYSE:C) executes its plans.