Group 1: Company Overview - Citigroup is headquartered in New York and operates in the Finance sector, with a stock price change of 19.25% since the beginning of the year [3] - The company currently pays a dividend of $0.56 per share, resulting in a dividend yield of 2.67%, which is significantly higher than the Financial - Investment Bank industry's yield of 0.85% and the S&P 500's yield of 1.52% [3] Group 2: Dividend Analysis - Citigroup's annualized dividend of $2.24 has increased by 2.8% from the previous year, with an average annual increase of 1.58% over the last 5 years [4] - The company's current payout ratio is 38%, indicating that it paid out 38% of its trailing 12-month earnings per share as dividends [4] Group 3: Earnings Growth Expectations - For the fiscal year, Citigroup expects solid earnings growth, with the Zacks Consensus Estimate for 2025 projected at $7.53 per share, reflecting a year-over-year growth rate of 26.55% [5] Group 4: Investment Appeal - Citigroup is viewed as an attractive dividend play and a compelling investment opportunity, currently holding a Zacks Rank of 1 (Strong Buy) [7]

Core Viewpoint - Citigroup's recent earnings report shows a mixed performance with a notable increase in investment banking revenues, but a decline in adjusted net income per share for 2024 compared to expectations [2][3][4]. Financial Performance - Citigroup's adjusted net income per share for Q4 was $1.34, exceeding the Zacks Consensus Estimate of $1.25, while the adjusted net income per share for 2024 was $4.04, missing the estimate of $5.88 [2]. - The company reported a net income of $2.9 billion for Q4, a significant recovery from a loss of $1.8 billion in the prior-year quarter, and a full-year net income of $12.7 billion, up 37.4% year over year [3]. Revenue and Expenses - Revenues for Q4 increased by 12.3% year over year to $19.6 billion, surpassing the Zacks Consensus Estimate of $19.55 billion, while full-year revenues reached $81.2 billion, up 3% year over year [4]. - Net Interest Income (NII) fell slightly to $13.7 billion, but non-interest revenues (NIR) surged by 62% to $5.8 billion. Operating expenses decreased by 18% year over year to $13.2 billion [5]. Segment Performance - The Services segment saw revenues of $5.17 billion, up 15% year over year, while the Markets segment's revenues increased by 36% to $4.6 billion [6][7]. - Banking revenues rose by 27% to $1.24 billion, and U.S. Personal Banking revenues increased by 6% to $5.2 billion [7]. - The Wealth segment's revenues reached $2 billion, a 20.4% increase year over year, driven by higher investment fee revenues and net interest income [8]. Balance Sheet and Credit Quality - Citigroup's deposits decreased by 1.8% to $1.28 trillion, while loans increased slightly to $694.5 billion [10]. - Total non-accrual loans fell by 16% to $2.7 billion, and provisions for credit losses decreased by 27% to $2.59 billion [11]. Capital Position - The Common Equity Tier 1 capital ratio improved to 13.6%, and the supplementary leverage ratio remained stable at 5.8% [12]. Future Outlook - Management projects revenues for 2025 to be between $83.5 billion and $84.5 billion, driven by investment banking and fee growth in the Wealth segment [13]. - Expected expenses for 2025 are slightly lower than $53.8 billion, indicating a focus on cost reductions and productivity savings [14]. - For the medium term, revenue growth is anticipated to be between $87 billion and $92 billion, with expenses expected to be below $53 billion [15]. Market Sentiment - Citigroup currently holds a Zacks Rank 1 (Strong Buy), indicating expectations for above-average returns in the coming months [19].

Core Viewpoint - Citigroup is undergoing significant restructuring to enhance performance, reduce costs, and simplify operations, which is expected to support its financials in the upcoming period [1][25]. Business Restructuring Efforts - CEO Jane Fraser is leading a comprehensive overhaul, including an organizational restructure that introduces five new reportable operating segments and reduces management layers [2][7]. - The company plans to eliminate 20,000 jobs over the next two years, following a reduction of approximately 10,000 jobs last year [2][3]. Financial Performance and Outlook - Total reported expenses for 2024 are expected to decline by more than 4% year-over-year to $54 billion, with management anticipating slightly lower expenses in 2025 [3][10]. - Citigroup's net interest income (NII) (excluding Markets) declined by 1% to $47.1 billion in 2024, but is expected to see modest growth in 2025 and continued momentum in 2026 [15][18]. Focus on Core Operations - The company is divesting non-core units, having exited consumer banking in nine countries and completed the separation of its institutional banking business in Mexico [7][9]. - Citigroup aims to modernize operations and invest in high-returning businesses like investment banking and wealth management, expecting a compounded annual growth rate (CAGR) of 4-5% in revenues by the end of 2026 [10][9]. Digital Initiatives - Citigroup is accelerating its digital strategy, rolling out AI tools for 140,000 employees across eight countries and making investments to automate mortgage origination [18][19]. - Active digital users increased by 5% year-over-year, which is expected to enhance top-line growth and improve operating efficiency [20]. Valuation and Stock Performance - Citigroup's stock is trading at a forward 12-month price-to-earnings (P/E) multiple of 10.69X, below the industry average of 14.66X, and cheaper than peers Bank of America and Wells Fargo [21][22]. - The company has a share repurchase plan authorized for $20 billion, with $1.5 billion expected to be bought back in the first quarter of 2025 [31]. Dividend and Shareholder Returns - Citigroup increased its quarterly dividend by 6% to 56 cents per share in July 2024, maintaining a consistent dividend payout with a ratio of 38% [30]. - The company’s solid growth trajectory and restructuring efforts present a favorable investment opportunity at current price levels [32].

Group 1 - Citigroup is currently ranked 1 in the Finance group, which consists of 871 companies, indicating strong performance within its sector [2] - The Zacks Rank system, which focuses on earnings estimates and revisions, has given Citigroup a Zacks Rank of 1 (Strong Buy), reflecting an improving earnings outlook with a 4.8% increase in the full-year earnings estimate over the past quarter [3] - Year-to-date, Citigroup's stock has increased by 11.5%, outperforming the average gain of 4.9% for Finance stocks [4] Group 2 - Citigroup is part of the Financial - Investment Bank industry, which includes 21 stocks and currently holds a 2 rank in the Zacks Industry Rank, with an average gain of 10.8% this year [5] - In comparison, Avidbank Holdings Inc., which is in the Banks - West industry ranked 15, has seen a year-to-date increase of 15.5% and an 11.5% rise in its current year EPS estimate [4][5][6] - The Banks - West industry has only gained 2.9% since the beginning of the year, highlighting Citigroup's stronger performance relative to its peers [6]

Core Viewpoint - The article discusses the reliability of Wall Street analysts' recommendations, particularly focusing on Citigroup, and emphasizes the importance of using these recommendations in conjunction with other analytical tools like the Zacks Rank for making informed investment decisions [1][4]. Group 1: Citigroup's Brokerage Recommendations - Citigroup has an average brokerage recommendation (ABR) of 1.67, indicating a consensus between Strong Buy and Buy, based on 21 brokerage firms [2]. - Out of the 21 recommendations, 13 are Strong Buy and 2 are Buy, which account for 61.9% and 9.5% of all recommendations respectively [2]. Group 2: Limitations of Brokerage Recommendations - Brokerage analysts tend to exhibit a strong positive bias in their ratings due to vested interests, leading to a higher number of Strong Buy recommendations compared to Strong Sell [5][9]. - The interests of brokerage firms may not align with those of retail investors, which can result in misleading insights regarding a stock's future price movements [6]. Group 3: Zacks Rank as an Alternative Tool - The Zacks Rank categorizes stocks into five groups based on earnings estimate revisions, providing a more reliable indicator of near-term stock price performance compared to ABR [7][10]. - The Zacks Rank is updated more frequently than ABR, reflecting timely changes in analysts' earnings estimates, which can better indicate future price movements [11]. Group 4: Citigroup's Earnings Estimates - The Zacks Consensus Estimate for Citigroup has increased by 4.4% over the past month to $7.51, indicating growing optimism among analysts regarding the company's earnings prospects [12]. - The recent change in the consensus estimate, along with other factors, has resulted in a Zacks Rank 1 (Strong Buy) for Citigroup, suggesting a potential for stock price appreciation [13].

Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. But when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.Cash flow can come from bond interest, interest from other types of investments, and of course, dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a met ...

Citigroup (C) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.Over the past month, shares of this U.S. bank have returned +14.6%, compared to the Zacks S&P 500 composite's +1.2% change. During this period, the Zacks Financial - Investment Bank industry, which Citigroup falls in, has gained 9.9%. The key question now is: What could be the stock's future direction?Although media reports ...

Company Performance - Citigroup has made significant progress toward its multiyear turnaround goals, with a credible chance of achieving double-digit ROTCE (Return on Tangible Common Equity) in the future [1] Analyst Position - The analyst holds a beneficial long position in shares of JPM and TFC through stock ownership, options, or other derivatives [1] Disclosure - The article reflects the analyst's personal opinions and is not influenced by compensation or business relationships with mentioned companies [1]

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Here are three stocks with buy rank and strong income characteristics for investors to consider today, January 22nd:JPMorgan Chase & Co. (JPM) : This financial services giant has witnessed the Zacks Consensus Estimate for its current year earnings increasing 5.8% over the last 60 days.This Zacks Rank #1 company has a dividend yield of 1.9%, compared with the industry average of 0.9%.Citigroup Inc. (C) : This financial services company has witnessed the Zacks Consensus Estimate for its current year earnings ...