Citigroup Inc (C)

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Where Fundamentals Meet Technicals: Citigroup (C)
By: Lyn Alden Schwartzer | May 17, 2022

Citigroup

Garrett sees a potential bottom in place for Citigroup (C) but likes other bank charts better:

Turning up from the .618 retrace, but other big bank charts look much better in comparison



I personally like Bank of America (BAC) more than Citi from a risk-adjusted return perspective. However, I want to focus on Citi for a moment, because Berkshire Hathaway (BRK.A) just bought $3 billion of it.

Basically, it’s the cheapest major US bank and pays a high dividend yield. Unlike other banks it is trading well below tangible book value, and well below its normal valuation range.



It has a single-digit price/earnings ratio:



Chart Source: F.A.S.T. Graphs

Does Citigroup deserve a lower valuation than the other big US banks? Yes. Does it deserve a valuation this low? I’d argue no.

With fear in the markets, buying Citigroup well below tangible book value does not seem like a bad 18-36 month trade to me.

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