Skip to main content

Market Overview

Is Citigroup A 'Super Cheap Stock To Buy' Right Now?

Share:
Is Citigroup A 'Super Cheap Stock To Buy' Right Now?

Sylvia Jablonski, chief investment officer of Defiance ETFs, expects bank earnings to continue to be strong, she said Thursday on CNBC's "Squawk Box."

Banks are benefitting from a few different factors including the rotation out of growth and tech into value and cyclical trades, Jablonski said. Banks tend to do well in an expanding economy, she noted. 

The surge in popularity of cryptocurrencies is also a factor that is benefitting banks, Jablonski said. 

"There's been this pickup of crypto trading and you know, custody of Bitcoin (CRYPTO: BTC) and things like that, which I think is bringing new accounts to banks."

"I think that loan growth is going to pop," Jablonski added.

As stimulus eases, she expects people to use their excess savings to invest in their businesses and turn to banks for loans.

Which Bank Is Best? If she could only pick one bank to invest in, she would choose Citigroup Inc (NYSE: C), Jablonski told CNBC.

Citigroup reported quarterly earnings of $2.15 per share, which beat the estimate of $1.68 per share. The company reported quarterly revenue of $17.2 billion, which beat the estimate of $17.01 billion.

Citigroup has a price-to-earnings ratio of 7.2 which is well below the industry average of around 12, Jablonski said.

"I think I'd probably just go for Citigroup just because it's, in my mind, a deep value play and a super cheap stock to buy."

C Price Action: Citigroup has traded as high as $80.29 and as low as $40.49 over a 52-week period.

The stock was up 0.78% at $70.30 at time of publication Thursday morning.

Photo: JiahuiH from Flickr.

 

Related Articles (C)

View Comments and Join the Discussion!

Posted-In: bank stocks banks CNBC Squawk BoxEarnings Long Ideas News Trading Ideas Best of Benzinga

Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
SPAC
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com