10 Best Financial Services Stocks To Buy According to Analysts

8. Citigroup Inc. (NYSE:C)

Upside Potential as of January 9: 9.10%

Citigroup Inc. (NYSE:C), one of the Best Financial Stocks, is a global financial services company that operates in over 100 different countries and territories. The company’s operations are divided into five primary categories: US personal banking, markets, wealth management, banking, and services. The bank’s primary services include US credit card services, trade and investment banking, and cross-border banking requirements for multinational companies.

Citigroup Inc. (NYSE:C) operates a domestic retail banking division as well as an international commercial banking franchise. Large trading, investment banking, international corporate banking, and custody operations are all part of the bank’s commercial operations, which are divided into services, markets, and banking segments (previously known as Institutional Client Group or ICG). The company’s most distinctive business, considering its global presence, is its commercial banking segment. This global reach will help maintain its position as a favored bank for multinational firms. Despite these advantages, maintaining a global presence is expensive and challenging, and the bank’s markets division makes a small profit. As a result, the commercial banking industry has experienced several benefits.

As part of its strategic repositioning, Citigroup Inc. (NYSE:C) is selling off its consumer business in Mexico and reinvesting in wealth and commercial banking, among other significant actions. The company might at last become a franchise with structural improvements.

With the exception of divestitures, the company’s overall revenues increased by 3% in the third quarter of 2024 as each of its major segments enjoyed growth and improved operating leverage. Higher loan and deposit volumes, along with a significant fee increase, drove the Services segment’s 8% revenue gain, setting a new quarterly record. Significant progress was also made in wealth management, as evidenced by a 24% increase in client investment assets and a 9% rise in revenues. At Citigold North America, adviser productivity increased by over 50% YoY. Investment banking fees increased 44% year over year due to the issuance of investment-grade debt and strong advising performance. In addition, the company maintained a good CET1 capital ratio of 13.7% while returning $2.1 billion in capital, including $1 billion in share repurchases.

Warren Buffett’s Berkshire Hathaway was the largest stakeholder in the company among the funds in Insider Monkey’s database at the end of Q3 2024. It owns 55.24 million shares worth $3.46 billion as of Q3.