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TheStreet Open House

Citigroup: Earnings Winner Again

"We view the recent relative weakness in bank stocks as an opportunity to buy shares of Citigroup," Cannon wrote, adding that "Citigroup offers investors the best restructuring opportunity in large-cap financials over the next 3-5 years."

Please see As Citi Gets Boring, Shareholders Get Excited for more on Citigroup's transformation.

Citi's shares have returned 18% this year, following a 51% return during 2012. The shares trade for 0.9 times their reported March 31 tangible book value of $52.35, and for 8.8 times the consensus 2014 earnings estimate of $5.31 a share, among analysts polled by Thomson Reuters. The consensus 2013 EPS estimate is $4.68.

C Chart C data by YCharts

Interested in more on Citigroup? See TheStreet Ratings' report card for this stock.

Next Up: Bank of America

Bank of America (BAC) will announce its first-quarter results on Wednesday at 7:00 a.m. ET.

The consensus among analysts is for the company to report first-quarter EPS of 22 cents, compared to profits of just 3 cents a share in both the fourth quarter and in the first quarter of 2012. Bank of America's fourth-quarter pretax results were nearly wiped out by $2.5 billion in costs for independent foreclosure reviews, and $2.7 billion in charges related to the company's $10.3 billion settlement of a long-term dispute with Fannie Mae (FNMA), over mortgage repurchase claims.

The silver lining from the Fannie Mae settlement will be a great reduction in the outstanding mortgage repurchase claims against Bank of America. Investors' mortgage repurchase claims against the company totaled $28.3 billion as of Dec. 31. Bank of Americas fourth-quarter earnings presentation implied that the Fannie Mae settlement would reduce the putback claims by roughly $12.2 billion, leaving about $16.1 billion in claims.

With the housing market continuing to recover, investors on Friday will be looking for solid credit leverage from Bank of America, including a reduction in mortgage repurchase claims, irrespective of the Fannie Mae settlement, along with loan loss reserve releases and a decline in litigation and loan servicing expenses.

Please see TheStreet's earnings preview for more on what to expect when Bank of America reports.

Bank of America's shares rose 2.5% to close at $12.28.

BAC Chart BAC data by YCharts

Interested in more on Bank of America? See TheStreet Ratings' report card for this stock.

-- Written by Philip van Doorn in Jupiter, Fla.

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