Citigroup Inc Stock Buy Recommendation Reiterated (C)

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

NEW YORK ( TheStreet) -- Citigroup (NYSE: C) has been reiterated by TheStreet Ratings as a buy with a ratings score of B. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth, attractive valuation levels, solid stock price performance and growth in earnings per share. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

Highlights from the ratings report include:
  • The net income growth from the same quarter one year ago has greatly exceeded that of the S&P 500, but is less than that of the Diversified Financial Services industry average. The net income increased by 42.0% when compared to the same quarter one year prior, rising from $2,946.00 million to $4,182.00 million.
  • C's revenue growth trails the industry average of 13.0%. Since the same quarter one year prior, revenues slightly increased by 1.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Powered by its strong earnings growth of 41.05% and other important driving factors, this stock has surged by 104.18% over the past year, outperforming the rise in the S&P 500 Index during the same period. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
  • CITIGROUP INC has improved earnings per share by 41.0% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, CITIGROUP INC reported lower earnings of $2.49 versus $3.61 in the prior year. This year, the market expects an improvement in earnings ($4.94 versus $2.49).

Citigroup, Inc., a diversified financial services holding company, provides a range of financial products and services to consumers, corporations, governments, and institutions worldwide. The company operates through two segments, Citicorp and Citi Holdings. Citigroup has a market cap of $158.9 billion and is part of the financial sector and banking industry. Shares are up 32% year to date as of the close of trading on Monday.

You can view the full Citigroup Ratings Report or get investment ideas from our investment research center.

--Written by a member of TheStreet Ratings Staff.

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