Citigroup Stock Is Primed to Grow as Interest Rates Begin to Slowly Rise to Normal Levels

Citigroup is in the banking and financial sector of the market, and is in a real position to grow as the interest rates begin to rise. Companies that are in the same position would include all the larger banks and companies that lend. Having a finance or banking stock in your portfolio is a solid way to be diversified, but you must watch out for situations that are similar to 2008. Although the damage that was done won’t likely be matched, it still could bring down your investment value in the stock. Let us take a look at their most recent numbers and see how they’ve performed.

Published over a year ago
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Reviewed by Vlad Skutelnik

According to one of their latest 8-K filings, the company reported a net income of $3.5 billion, an increase of 25% versus the prior year period. Revenues were at $16.4 billion, and increase of 6% versus the prior year period.  Also, the company was able to return $4.7 billion to shareholders. All in all, these are solid quarterly numbers for potential investors which could lead to confidence investing in the company. 

Taking a look at the chart, we can see that price is coming off the recent highs and is pulling back. Right now would be a good time to watch the price pull back and plan for a solid entry point. Review past levels and compare them to see if you can pinpoint a solid support level. The $50.50 level was a resistance point that was broken on volume, so now that could be a pull back point to watch for. Price is moving in a healthy manner and there are no red flags that stick out to me in regards to the chart.

Typically, a company's financial statements are the reports that show the financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Citigroup income statement, its balance sheet, and the statement of cash flows. Potential Citigroup investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Citigroup investors may use each financial statement separately, they are all related. The changes in Citigroup's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Citigroup's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.
The goal of Citigroup fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Citigroup performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Citigroup shares is the value that is considered the true value of the share. If the intrinsic value of Citigroup is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Citigroup. Please read more on our fundamental analysis page.

How effective is Citigroup in utilizing its assets?

Citigroup reports assets on its Balance Sheet. It represents the amount of Citigroup resources that either has an existing economic value or will provide some form of benefits in the future. By effectively utilizing its assets, Citigroup aims to generate revenue, control costs, drive operational efficiency, and enhance profitability. Optimizing asset utilization helps maximize shareholder value and maintain a competitive position in the Diversified Banks space. To get a better handle on how balance sheet or income statements item affect Citigroup volatility, please check the breakdown of all its fundamentals.

Are Citigroup Earnings Expected to grow?

The future earnings power of Citigroup involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of Citigroup factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. Citigroup stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of Citigroup expected earnings.

And What about dividends?

A dividend is the distribution of a portion of Citigroup earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Citigroup dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Citigroup one year expected dividend income is about USD1.55 per share.
At present, Citigroup's Dividend Payout Ratio is projected to increase slightly based on the last few years of reporting.
Last ReportedProjected for 2024
Dividends Paid-5.2 B-5 B
Dividend Yield 0.05  0.06 
Dividend Payout Ratio 0.56  0.59 
Dividend Paid And Capex Coverage Ratio(1.82)(1.91)
Investing in dividend-paying stocks, such as Citigroup is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Citigroup must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Citigroup. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

Is Citigroup valued correctly by the market?

Risk

You can take a look at the company’s latest 10-K filing to view a full set of risks, but here are a few that you should keep in mind before investing. The company is dependent upon overall market conditions, because if the market slows down, people may stop borrowing or be unable to pay back their loans. Also, they are subject to government regulations, which could adversely affect the company’s numbers. Being in a highly regulated market has the potential to limit what they are able to sell and do. Financial company’s have many other risks, but these are just a few to keep in mind before investing.

Conclusion

It’s difficult to determine the right finance stock to have in your portfolio, but Citigroup might be the right fit for your current situation. The best thing to do is to compare all of the other large finance companies and find which one is giving the best value for your buck. Also, be sure to consult an investing professional as they can direct you in the right direction to maximize the benefits for your portfolio.

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Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Nathan Young do not own shares of Citigroup. Please refer to our Terms of Use for any information regarding our disclosure principles.

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