Here's Why You Should Buy Citigroup (C) Stock Right Now

Citigroup (NYSE:C) exhibits mixed prospects for revenue growth, but cost-saving initiatives are expected to support bottom-line growth. However, litigation issues remain a concern.

Expense management and streamlining operations internationally aided the company to surge 23% over the past year compared with 15% growth registered by the industry.

Moreover, the company’s earnings estimates have been revised slightly upward, for the current year, over the last 30 days. As a result, the stock carries a Zacks Rank #2 (Buy).

Citigroup has been emphasizing on growth in core businesses. Further, the company continues to optimize its branch network, with focus on core urban markets, improving digital channels and reducing branches. It is also making investment in several areas to stoke growth. Additionally, the ongoing investments in branded cards support the company’s growth strategy.

The company’s operating expenses witnessed a negative CAGR of 9.2% over four years (2014-2017). Expenses dropped as the impact of higher volume-related expenses and ongoing investments were more than offset by efficiency savings and wind-down of legacy assets.

Though revenues remained volatile over the past few years, the company recorded 2% year-over-year improvement in 2017. We expect the bank to record significant growth in revenues in the near term, backed by continued economic recovery and focus on core operations with strategic actions. Notably, for 2018, management projects top-line growth at around 3%, with stronger growth in operating businesses being offset by the persistent wind down of legacy assets.

Stocks to Consider

Comerica Incorporated (NYSE:CMA) has been witnessing upward estimate revisions for the last 60 days. Further, the stock surged more than 53.4% over the past six months. It currently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Northern Trust Corporation (NASDAQ:NTRS) has been witnessing upward estimate revisions for the last 60 days. Also, the company’s shares have risen nearly 22.5% over the last six months. It currently carries a Zacks Rank #2.

BB&T Corporation (NYSE:BBT) has been witnessing upward estimate revisions for the last 60 days. Over the last six months, the company’s share price has been up more than 25%. It carries a Zacks Rank #2.

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