11 Cheap NYSE Stocks to Invest in According to Hedge Funds

6. Citigroup Inc. (NYSE:C)

Forward P/E Ratio as of April 8: 7.82

Number of Hedge Fund Holders: 101

Citigroup Inc. (NYSE:C) is a diversified financial service holding company that provides various financial products and services to consumers, corporations, governments, and institutions. It operates through five primary segments that are known as Services, Markets, Banking, US Personal Banking, and Wealth.

In 2024, the company was able to exceed its full-year revenue growth target by improving by 5% year-over-year to generate an amount of $81.1 billion. Due to these results, Betsy Graseck from Morgan Stanley kept a Buy rating on the company on March 10, while maintaining a price target of $110. The company’s Services division particularly saw a 9% year-over-year revenue increase, which 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 fourth-quarter results in 10 years with 6% market growth. Citigroup Inc. (NYSE:C) is also expanding its Flex Pay tool through partnerships like that with Apple Pay. Flex Pay allows credit card customers to make fixed monthly payments for purchases of $75 or more. It has seen consistent double-digit growth, which includes a 25% increase from 2023 to 2024.

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.”