13 Best Cheap Stocks to Invest in for Beginners

5. Citigroup Inc. (NYSE:C)

Forward P/E: 10.21

Number of Hedge Fund Holders: 101

Headquartered in New York, Citigroup Inc. (NYSE:C) provides financial products and services. Its operations are divided into the following segments: Services, Markets, Banking, Wealth, US Personal Banking (USPB), and All Other.

On May 8, Reuters reported that the company is facing a newly reinstated $1 billion lawsuit for allegedly providing $3.3 billion to Mexican Oceanografia, an oil drilling company, between 2008 and 2014, and duping investors despite knowing the company had huge debt and forged signatures.

However, despite the lawsuit, Barclays analyst Jason Goldberg maintained a Buy rating on Citigroup Inc. (NYSE:C) on May 12, setting a price target of $95.00. The company has solid operations, reporting a net income of $4.1 billion and earnings per share of $1.96 in fiscal Q1 2025. Total revenue rose by 3%, driven by growth across all business segments.

This positive performance reflects Citigroup Inc.’s (NYSE:C) potential to maintain a healthy financial standing and generate substantial income. Fiscal Q1 2025 marked the third consecutive quarter of positive operating leverage across each of the company’s five lines of business, and the fourth for the firm overall. This consistent performance suggests efficient cost control and management across its operations, and is attracting investor interest.