Top 5 Bank Stocks To Buy Today

2. Citigroup Inc. (NASDAQ:C): $56.67

Number of Hedge Funds: 96 (2020 Q2)
Number of Hedge Funds: 91 (2020 Q3)
Total Dollar Amount of Long Hedge Fund Positions:$5.6 billion
Percent of Hedge Funds with Long Positions: 11.1%
2020 Return (through November 27th): –26.2%
Popularity Ranking (2020 Q2): 23
Popularity Ranking (2020 Q1): 31
Noteworthy Hedge Fund Shareholders: ValueAct, Boykin Curry

A value fund manager recently said the following about Citigroup in his investor letter:

“Citigroup’s operations span more than 160 countries. Faced with record low interest rates, rising loss provisions, and subdued lending, the financial sector has been one of the worst performing groups year-to-date. However, earnings appear to have stabilized for the major banks. The company had its own internal issues too, having to pay significant fines for regulatory deficiencies. They are spending over $1 billion on compliance matters. With these issues being addressed and the company’s dominant network intact, it is well positioned to benefit from a global economic recovery. We have assumed a gradual recovery of earnings to former highs over the next few years. Return on tangible common equity should exceed 10% by 22, implying earnings per share above $8. While shares have risen recently, they still trade at only 6x our 2-year-out earnings estimate and yield just under 4%.”

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