10 Most Undervalued S&P 500 Stocks to Buy Now

4. Citigroup Inc. (NYSE:C)

Forward P/E Ratio as of March 14: 8.9

Number of Hedge Fund Holders: 101

Citigroup Inc. (NYSE:C) is a financial services company that provides diverse products and services across five segments. These include the Services, Markets, Banking, US Personal Banking, and Wealth segments. It serves consumers, corporations, governments, and institutions worldwide.

The company’s Services division saw a 9% year-over-year revenue increase in 2024, and reached $19.6 billion. This was driven by a 17% rise in fee revenue and higher deposit volumes. The division gained market share in Trade and Treasury Solutions (TTS) and security services, and achieved its best Q4  in 10 years with 6% market growth. For 2025, the company anticipates continued growth in non-interest revenue through expanded institutional and commercial client relationships and digital/data investments with asset managers.

Citigroup Inc. (NYSE:C) is expanding its Flex Pay “pay-over-time” tool through strategic partnerships, notably with Apple Pay, to increase customer awareness and usage. Flex Pay allows credit card customers to convert purchases of $75 or more into fixed monthly payments for a fee, instead of APR. Primarily used by digitally savvy customers for short-term financing, Flex Pay has seen consistent double-digit growth, which includes a 25% increase from 2023 to 2024. While accessible via the company’s app and website, partnerships drive significant volume and offer added convenience.

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.”