10 Most Promising Low-Cost Stocks According to Hedge Funds

7. Citigroup Inc. (NYSE:C)

Number of Hedge Fund Holders: 85

Forward P/E Ratio as of October 13, 2024: 11.48

Citigroup Inc. (NYSE:C) is an investment banking giant that provides asset management services, risk management services, investment management services, mortgage loans, credit cards, and other banking commodities. Some of its subsidiaries include Citibank, Banamex, and Citicorp LLC, to name a few.

Citigroup Inc. (NYSE:C) is present in 90 countries, issues currencies in 144 countries, and has trading floors in 77 countries. The company is strongly inclined to expand by offering commercial banking services in other countries. In addition to that, Citigroup is also leveraging technology to deliver next-gen transaction banking services to its clients. On October 10, the company partnered with Mastercard to enable cross-border payments in 14 receiving markets from across the globe.

In the second quarter of 2024, the company logged $20.1 billion in revenue and $3.2 billion in net income, up from $19.4 billion in revenue and $2.9 billion in net income from Q2 2023. Of this, its investment banking segment showed promising results and increased revenue by 38%.

Citigroup Inc. (NYSE:C) is one of the most important names in the banking sector because of its expansive network and strong ecosystem. The company continues to grow due to its extravagant expansion strategy.

Patient Capital Management stated the following regarding Citigroup Inc. (NYSE:C) in its first quarter 2024 investor letter:

“Citigroup Inc. (NYSE:C) gained 24.1% in the quarter continuing its uptrend from 4Q. The company is on a multi-year journey to reorganize the business and reach return on tangible common equity of 11-12% by 2026 (and higher further out). Citigroup is finally taking the hard actions necessary, cutting unprofitable departments, taking out middle management layers, and reducing overall headcount. As of early March, the company was 70% done with its business exits and had reduced management layers by 1/4th. We have high confidence Citi will hit its targets. In the meantime, the company is returning cash to shareholders, which could meaningfully increase if the Basel III capital proposal is changed.”