Citigroup Inc. (C)

Not as cheap as it was. Management is first-rate, completed a wonderful turnaround. Expects more buybacks, which will increase EPS. Credit book is very good. Loves its FICC business. Very big international footprint. Very well capitalized. Definitely hold. Sees upside.

They reported a good quarter: 8% revenue growth, 35% EPS growth and 14% net interest income growth (best among the banks) YOY. It remains much cheaper than its peers. Shares declined today along with all banks (and a down market). It's too cheap to ignore.

It reports Wednesday. It's done from ugly duckling to beautiful swan, but the analysts haven't caught up to their numbers. So, Citi keeps surprising to the upside. We get the upside estimate revisions, then the stock flies.

Generally speaking, likes US financials. Stock's done well. Great technical chart. Price to book ratio still pretty reasonable at 1.12x. Lower oil prices would be beneficial to the consumer, resulting in lower loan losses for all the banks. Likes it, but likes others a bit more.

Instead, he owns GS. See his Top Picks.

It's had a good year, long overdue, up 66% this year. By far is the cheapest among peers in PE, book value and dividend yield. Cheaper because profitability is less, however, the CEO is increased profits steadily in recent years and close the gap with peers.

Probably the cheapest of the big money-centre banks in the US, trading below book value. Going through a lot of changes.

It's leaning into high-growth areas of investing banking and wealth management as it controls costs. Is hitting 52-week highs. He expects news this week that they will get out of regulatory hot water. 

When he bought it, there was a revolving door in the C suite, and had too much international business. The new CEO sold much of that foreign business. They went from trading at 70% of book value to 90%. Will benefit from a steepening yield curve. He see $7.60 earnings this year and $9.50 in 2026.

Not trimming. Just beat and raised on latest quarter. All segments showing growth. Cost-cutting story combined with improving macro. Executing on its transition. More in the tank.

It was under-owned and cheaper than it should be when they bought it. It is a transformational story with tailwinds for banks coming along. Has a good growth rate at 10X. Still good to buy.

Projected 28% earnings growth in 2026, yet trades at only 10.5x PE 2026. Despite a huge run, up 66.5% this year, it remains the cheapest big US bank.

New CEO has won back confidence of the street. Solid earnings growth plus expansion of earnings multiples. It was an ordinary company, trading inexpensively, but with a glimmer of hope that it could distinguish itself. And the multiple re-rated upward. Still a very good hold.

Is up 41% this year, but trades at a low PE and yields 2.4%. Has room to run. Great CEO.

Doesn't mind trimming a bit here. Likes the story longer term, especially US banks. If he's correct, financials should do well until late 2027 or first half of 2028. Market's extended, plus expects some sort of negative catalyst in the next couple of weeks. Wouldn't be surprised by a pullback. Big support in low $80s.

If you don't want to be too tactical, just hold and let it run till 2027. If you want to get fancy, trim around 2% and look to get back in on weakness.

They reported a big top and bottom line beat, sending shares rallying today. All five segments grew last quarter, led by wealth management (up 20%). Higher costs from their turnaround should decline next year, which the market liked to hear. The CEO is turning things around. Will keep climbing.