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
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

10 Cheapest Bank Stocks to Forward Earnings (Update 3)

7. Citigroup

C Chart C data by YCharts

Shares of Citigroup (C - Get Report) closed at $46.97 Friday, returning 19% this year, following a 51% return during 2012. The shares trade for 0.9 times tangible book value, and for 8.7 times the consensus 2014 EPS estimate of $5.39. The consensus 2013 EPS estimate is $4.64.

Investors reacted very favorably after Citigroup on April 15 reported first-quarter earnings of $3.81 billion, or $1.23 a share, compared to earnings of $1.2 billion, or 38 cents a share, in the fourth quarter, and $2.93 billion, or 95 cents a share, in the first quarter of 2012. The fourth-quarter results had included $1 billion in pretax expenses tied to the company's cost-cutting initiative announced in December.

Please see TheStreet's earnings coverage for full details on Citi's first-quarter results.

KBW analyst Frederick Cannon rates Citigroup "outperform," with a price target of $55, and said in note to clients on April 28 that despite being "the most global of the largest U.S. banks," the company could also "be one of the biggest beneficiaries of rising U.S. home prices this year."

Within Citi Holdings -- into which noncore assets have been placed to run off, as part of Citigroup's "good bank/bad bank" long-term strategy -- there were $98.3 billion in total U.S. loans as of March 31, including $86.1 billion residential mortgage loans.

With only residential mortgage loans making up just 7% of Citigroup's total assets, Citigroup "is least affected by reduced mortgage banking fees," Cannon wrote. But when analyzing the effect on 2013 earnings estimates for six of the largest U.S. banks on a 20% decline in mortgage origination fees, a 20% reduction in net loan charge-offs, along with a 10% reduction in expenses on nonperforming assets, Cannon determined that Citigroup would see an 8% boost to earnings. This was second only to Bank of America, and ahead of the projected benefit of rising home prices to PNC Financial Services Group (PNC), JPMorgan Chase, Wells Fargo, and U.S Bancorp (USB).

Cannon estimates Citigroup will earn $4.75 a share this year, with earnings increasing to $5.90 a share in 2014.

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

5 of 11

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

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

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
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!
BAC $15.84 0.00%
C $53.67 0.00%
COF $78.65 0.00%
JPM $62.13 0.00%
WFC $54.82 0.00%


DOW 18,096.90 -106.47 -0.58%
S&P 500 2,098.53 -9.25 -0.44%
NASDAQ 4,967.1410 -12.76 -0.26%

Partners Compare Online Brokers

Free Reports

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