10 Most Profitable Value Stocks to Buy Now

4. Citigroup Inc. (NYSE:C)

TTM Net Income as of March 13: $12.682 billion

Forward P/E Ratio as of March 13: 9

Number of Hedge Fund Holders: 101

Citigroup Inc. (NYSE:C) is a financial services company that provides a spectrum of products and services to diverse clients. It operates through five segments: Services, Markets, Banking, US Personal Banking, and Wealth. It offers services ranging from treasury and trade solutions to investment banking and wealth management.

The firm’s Services division drives most of its revenue and includes the Treasury and Trade Solutions (TTS) and Security Services. In 2024, it reached a record year, with revenues climbing 9% year-over-year to $19.6 billion. This growth occurred despite a low-interest-rate environment. This success is driven by significant market share gains in both TTS and Security Services, which was highlighted by a decade-high performance in the Q4. This performance is underpinned by strong underlying fee drivers, which include US dollar clearing, commercial card spend, cross-border transactions, and assets under custody.

Citigroup Inc. (NYSE:C) aims to solidify its leadership with large institutions and expand its commercial client market share within TTS. It’s also looking to invest in digital and data capabilities to deepen relationships with asset managers and owners within Security Services. Continuous investment in technology and platform modernization remains a priority.

Diamond Hill Capital Long-Short Fund stated the following regarding Citigroup Inc. (NYSE:C) in its first quarter 2024 investor letter:

“Other top Q1 contributors included Meta Platforms, Citigroup Inc. (NYSE:C) and Walt Disney. Banking and financial services company Citigroup’s restructuring efforts are ongoing, and it continues remediating regulatory issues and building capital in anticipation of increased requirements. The company expects to see expenses fall meaningfully in the second half of 2024, bolstering the outlook from here.”