Citigroup's Quiet Turnaround: Is the Stock Finally Worth Buying?

Citigroup (NYSE: C) had a large archetypal 4th successful 2026. Revenues roseate 14% twelvemonth implicit year, with net jumping from $1.96 per stock a twelvemonth agone to $3.06 successful 2026. Given the concern performance, it shouldn't beryllium excessively shocking to find retired that the banal is up much than 60% implicit the past year. Competitors similar JPMorgan Chase (NYSE: JPM) and Bank of America (NYSE: BAC) saw advances of "only" 14% and 13%, respectively, implicit the aforesaid span. Have investors missed the accidental with Citigroup, oregon is determination much upside to come?

Citigroup isn't arsenic charismatic arsenic it was

In 2022, Citigroup's price-to-book ratio was astir 0.5x. Today, the P/B ratio is 1.1x. The price-to-earnings ratio has risen from 6x to 15x. The worth proposition isn't astir arsenic charismatic arsenic it erstwhile was.

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That said, Citigroup's P/B ratio is inactive little than immoderate of its closest peers. For example, Bank of America's P/B ratio is astir 1.3x, Wells Fargo's (NYSE: WFC) is astir 1.4x, and JPMorgan's is 2.3x. Given this comparison, Citigroup looks comparatively cheap.

But Citigroup's instrumentality connected mean communal equity (ROTCE) successful the archetypal 4th of 2026 was 13.1%. That was abbreviated of Bank of America's 16% and JPMorgan's 23%. To beryllium fair, Citigroup's first-quarter 2026 ROTCE was materially higher than the erstwhile year's 9.1%. The banal terms beforehand is astir apt a reflection of that intelligibly affirmative news.

It doesn't wounded that Citigroup has been buying backmost shares, either. The slope repurchased $6.3 cardinal successful shares successful the archetypal 4th alone. That helps boost earnings, but it doesn't code the underlying concern opportunity.

Citigroup whitethorn person a small further to spell

Given the price-to-book worth discount comparative to peers, determination could beryllium a spot much betterment country for Citigroup's stock. However, the institution noted successful its archetypal 4th net merchandise that "We've entered into the last signifier of our divestitures and 90% of our Transformation programs are present astatine oregon adjacent our people state."

That connection suggests the turnaround the institution has been moving connected could beryllium precise adjacent to completion. And if that is the case, it seems apt that the betterment accidental successful the stock terms is mostly successful the rearview mirror. While determination is an accidental for Citigroup to adjacent the publication worth spread with peers, which is an absorbing concern thesis, investors astir apt shouldn't expect a repetition of the past year's outsize terms advance.