12 Most Undervalued Large Cap Stocks to Buy Now

1. Citigroup Inc. (NYSE:C)

Forward Price-to-Earnings Ratio as of March 4: 10.59

Number of Hedge Fund Holders: 101

Citigroup Inc. (NYSE:C) is a global financial services holding company that offers an array of products and services to a diverse clientele. Operating through five segments, it provides services that range from treasury and trade solutions and securities services to markets, banking, US personal banking, and wealth management. It serves consumers, corporations, governments, and institutions.

Its Services division is a major contributor to the company’s revenue. In 2024, this division generated $19.6 billion in revenue, which was a 9% increase from the previous year. In Q4 alone, the revenue jumped by 15%. This growth came from the strong performance in both Treasury and Trade Solutions (TTS) and Security Services. A part of the division’s success comes from its fee-based revenue.

This growth is attributed to higher activity in areas like US dollar clearing, commercial card spending, and cross-border transactions. Citigroup Inc. (NYSE:C) has been gaining market share in both TTS and Security Services. It has expanded its client base among large institutions and commercial clients through strategic digital investments and enhanced client service offerings. This has solidified its position as a leading global financial services provider.

Earlier last year, here is what Diamond Hill Capital Long-Short Fund said about 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.”

While we acknowledge the growth potential of Citigroup Inc. (NYSE:C), our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than C but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.

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