NEW YORK (TheStreet) -- Citigroup (C - Get Report) stock is slumping by 0.61% to $37.58 in afternoon trading on Tuesday, as investors' fears about a possible recession, plunging oil prices and low interest rates weigh on the financial sector.
The S&P 500 financial index declined by 2.6% yesterday, and is down more than 20% from its July 2015 high, Reuters reports.
Interest rate futures indicate that there is a one-in-four chance that the Federal Reserve will raise interest rates again this year, Reuters reports. Higher rates increase banks' profitability.
Investors also are concerned about how plunging oil prices will impact energy-exposed loans.
However, Jonathan Golub, the chief U.S. market strategist at RBC Capital Markets in New York, noted that bank stocks' declines could present a buying opportunity, according to Bloomberg.
"The market is almost looking for an excuse to be concerned," Golub told Bloomberg. "U.S banks are in healthier shape, they got well ahead of their issues. But when interest rates are really low and there's other issues facing the banking sector, the specter has a hard time helping."
Separately, TheStreet Ratings team rates the stock as a "hold" with a ratings score of C+.
Citigroup's strengths such as its revenue growth, compelling growth in net income and attractive valuation levels are countered by weaknesses including poor profit margins and a generally disappointing performance in the stock itself.
You can view the full analysis from the report here: C
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.C data by YCharts