Investors Can Play it Safe With Citigroup Stock

C has had a volatile year

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At the end of November, we asked if bank stocks could stick the landing after a transcendent 2021. One notable name, Citigroup Inc. (NYSE:C), has not, to the tune of a 13.6% deficit this quarter. Does that mean C is at an intriguing entry point for options bulls?

Citigroup stock is battling its year-to-date breakeven level, with recent pressure from its descending 20-day moving average. C's volatile year is reflected by the analyst community; seven rate the shares a "strong buy," and the other seven rate it a tepid "hold."

C Stock

From a fundamental perspective, Citigroup stock offers a forward dividend of $2.04 with a dividend yield of 3.36%, making it a strong option for dividend investors. C also trades at a very low price-earnings ratio of 5.74 and a decent price-sales ratio of 1.74, providing a solid valuation as well. Citigroup stock has a forward price-earnings ratio of 7.62, which is still great value but does signal an anticipated decrease in upcoming earnings.

Citi also doesn’t have much opportunity for substantial growth on the horizon. Although Citigroup increased its revenues 3.8% between fiscal 2017 and fiscal 2020, C's trailing 12-month revenues are currently down 4.2%. Nonetheless, Citigroup has increased its trailing 12-month net income a significant 121% since fiscal 2020 after experiencing a 46% decline between fiscal 2019 and fiscal 2020.

Overall, an investment in Citigroup stock offers very little risk, with a balance sheet that includes $988 billion in cash and $563 billion in total debt, making it one of the safest stocks available in the market.


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