This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Top 10 Buy-Rated Stocks Under $5

Stocks in this article: C ARTG RFMD

3. Citigroup (C) is quite often the most heavily traded U.S. stock, with an average daily share volume of more than 810 million. Recently, the Treasury Department began selling its Citigroup stake, which was acquired as part of the Troubled Asset Relief Program, or TARP. The bank's stock has famously failed to maintain the $5 level, although shares are up nearly 20% in 2010.

Consensus: Of those with a rating on Citigroup, 11 analysts, or 44%, recommend purchasing the stock. Another 10 analysts advise holding them, and four, including Meredith Whitney, say investors should sell Citigroup shares.

Closing Price: $3.92 (June 2)

Bullish Case: On Wednesday, Rochdale Securities analyst Dick Bove said Citigroup's stock is trading at a slight discount to its tangible book value. "This means the company is selling below its liquidation value," Bove wrote. "The true value of Citigroup is well in excess of its current stock price. Some of its hidden asset values are now being recognized. It is led by a very capable CEO. The stock is seriously undervalued." Bove has a buy rating and $6.90 price target on Citigroup shares.

Bearish Scenario: In April, Collins Stewart analysts upgraded Citigroup to hold, noting that while there are "signs of a nascent turnaround for the company," there is an overhang on the stock due to the Treasury's sale of its stake in the bank. Risks to the firm's $6 price target include a deteriorating credit and macroeconomic environment and more restrictive constraints from regulators, Collins Stewart analysts wrote.

8 of 10

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs