We recently compiled a list of the Jim Cramer Discussed 18 Companies That Hit $100 Billion in Market Cap in 2024. In this article, we are going to take a look at where Citigroup Inc. (NYSE:C) stands against the other companies that hit $100 billion in market cap in 2024.
Jim Cramer, the host of Mad Money, recently discussed a number of companies that have surpassed $100 billion in market capitalization this year, noting how these companies seem to reflect the current market mood. According to Cramer, it used to be a significant achievement for a company to reach the $100 billion mark, as most companies would never attain that level of market cap.
READ ALSO 10 Best Jim Cramer Stocks to Buy According to Analysts and Jim Cramer’s Lightning Rounds: 12 Stocks Under the Spotlight
He emphasized the immense effort and determination required to achieve such a feat. However, Cramer pointed out that in today’s market, the $100 billion threshold has lost some of its significance, given the recent surge in stock valuations. He highlighted that, as of the market close last Friday, 18 companies had crossed the $100 billion mark in 2024, a notable increase that speaks to the current market dynamics.
Cramer acknowledged that stocks, like everything else, had to contend with inflation, which remains a persistent issue. He went on to say:
“I know we’re experiencing a heightened market, with expectations really running so hot that you can’t believe that a presidential rally, or, let’s say, an end-of-the-year rally and a stock shortage rally are all in play at once. Many of these stocks got clocked today as part of a sell-off that seemed to infect the year’s best performers. I don’t know how long it’ll last, maybe some great buying opportunities already.”
Cramer concluded that the massive influx of capital into the market is a clear driver behind the rise in companies reaching the $100 billion valuation.
“But bottom line: When you get this much money coming in, you can see how all these companies can reach $100 billion, creating a huge amount of wealth, at least on paper. One more reason why it wouldn’t be so bad if some of the winning investors in this market took something delicious off the table.”
Our Methodology
For this article, we compiled a list of 18 stocks that were discussed by Jim Cramer during the episode of Mad Money on December 9. We listed the stocks in ascending order of their hedge fund sentiment as of the third quarter, which was taken from Insider Monkey’s database of 900 hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A team of financial advisors huddled around a desk, discussing the best investment strategy for their client.
Citigroup Inc. (NYSE:C)
Number of Hedge Fund Holders: 88
Calling Citigroup Inc. (NYSE:C) an anomaly, Cramer noted that the stock has returned 45%.
“You want [an] anomaly? Hey, how about Citigroup with a total return of 45%, enough to finally let it sneak into the hundred billion-dollar club. Not bad, it’s part of the failings of banks that are finally getting their due.”
Citigroup (NYSE:C) is a leading global financial services firm that provides a wide range of financial products, including cash management, trading, and investment banking services. According to CFO Mark Mason at the Goldman Sachs 2024 U.S. Financial Services Conference on December 10, the company is on track to meet the high end of its revenue forecast for 2024, which is between $80 billion and $81 billion.
He highlighted that net interest income, excluding markets, has exceeded expectations for the year. While the bank expects its expenses to be near the upper end of the initial guidance, Mason anticipates positive operating leverage extending into 2025 and beyond. In the fourth quarter, investment banking fees are expected to increase by 25% to 30% compared to the previous year, and Markets revenue is projected to rise by a high teen percentage.
Mason also noted that equities, particularly prime balances, continue to show strong momentum. Returning capital to shareholders remains a key priority for the company, and Citigroup (NYSE:C) aims to complete $1 billion in share repurchases during the quarter, with $500 million already repurchased.
Overall C ranks 6th on our list of the companies that hit $100 billion in market cap in 2024 according to Jim Cramer. While we acknowledge the potential of C as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. 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: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.
Disclosure: None. This article is originally published at Insider Monkey.
