15 Best and Cheap Stocks to Buy According to Billionaires

13. Citigroup Inc. (NYSE:C)

Forward P/E Ratio: 9.27

No. of Billionaire Investors: 17

Citigroup Inc. (NYSE:C) is a diversified financial services holding company. It operates through the Services, Markets, Banking, Wealth, and U.S. Personal Banking segments. The company offers a range of financial services to consumers, corporations, governments, and institutional clients globally. Its offerings include retail banking, investment banking, securities brokerage, wealth management, and more.

Citigroup Inc. (NYSE:C) is expanding its Flex Pay “pay-over-time” tool through strategic partnerships, notably with Apple Pay, to enhance customer awareness and usage. Flex Pay has experienced consistent double-digit growth, growing by 25% from 2023 to 2024, driven by high usage by online customers for short-term financing.

On March 10, Betsy Graseck from Morgan Stanley maintained a Buy rating on C shares, keeping a price target of $110 per share. The analyst remains bullish on Citigroup following its strong 2024 results. For FY2024, the company posted a net income increase of approximately 40% to $12.7 billion. The bank also surpassed its full-year revenue target, by growing the revenue by 5% year-over-year to $81.1 billion. The growth in 2024 was driven by a record year in the Services segment which soared 9%, driven by new mandates and fee growth. Citigroup Inc. expects its expenses to be slightly below 2024 levels, with a focus on delivering positive operating leverage.

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.”