Analyst Says These 10 Stocks Can Benefit if Donald Trump Wins US Election 2024

2. Citigroup Inc (NYSE:C)

Number of Hedge Fund Investors: 94

With an over 3% dividend yield and P/E of under 20, Citigroup is a notable financial stock that Wolfe Research believes could benefit if Donald Trump comes to power.

Analysts at BofA expect Citi to clock in EPS growth of 8% this year. According to Yahoo Finance data, Citigroup Inc’s (NYSE:C) EPS estimate for the next year (2025) is around $7.21. Assuming the banking sector’s average multiple of 10.32, the stock is currently undervalued. Wall Street’s average analyst estimate for Citigroup Inc (NYSE:C) is $66, while the stock was trading at around $62 as of June 1.

Warren Buffett, Leon Cooperman, Ken Fisher, Cliff Asness, Israel Englander – the list of billionaires having stakes in Citigroup Inc (NYSE:C) is long, thanks to Citigroup Inc’s (NYSE:C) strong fundamentals and dividend history. Citigroup Inc (NYSE:C) has upped its dividend every year since 2011. Citigroup Inc (NYSE:C) expects annual revenue growth of about 4%-5% by 2026, and it’s targeting an 11-12% return on tangible common equity in the same period.

Citigroup ranks fourth among major U.S. banks in terms of deposits and net loans. As of Q1, Citigroup reported total deposits of $1.307 trillion and net loans of $656.3 billion. Additionally, Citigroup has the lowest percentage of non-interest-bearing deposits to total deposits at 15.3%.

The company’s “Project Bora Bora” is expected to rake in huge cost savings. It resulted in 7,000 job cuts and anticipated annual savings of $1.5 billion. Citigroup plans to cut a total of 20,000 jobs globally over the next two years. The company also plans to fully or partially exit several markets, including Mexico, South Korea, Russia, and China. Recently, it sold its Consumer Wealth portfolio in China to HSBC and plans to transfer its Chinese credit card portfolio to Fubon Bank. However, Citigroup still plans to establish a China-based investment bank by the end of the year.

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.”