2-Star Stocks Poised to Plunge: Citigroup?

Based on the aggregated intelligence of 135,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, banking behemoth Citigroup (NYSE: C) has received a distressing two-star ranking.

With that in mind, let's take a closer look at Citigroup's business and see what CAPS investors are saying about the stock right now.

Citigroup facts

Headquarters (founded)

New York, N.Y. (1812)

Market Cap

$43.6 billion

Industry

Financial Services

TTM Revenue

$34.69 billion

Management

CEO Vikram Pandit

President William McNamee

TTM Return on Equity

(12.7%)

5-Month Return

267%

Competitors

Bank of America (NYSE: BAC)

Wells Fargo (NYSE: WFC)

CAPS members bearish on C also bearish on

JPMorgan Chase (NYSE: JPM)

Ford Motor (NYSE: F)

CAPS members bullish on C also bullish on

General Electric (NYSE: GE)

Apple (Nasdaq: AAPL)

Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS. TTM = trailing 12 months.

Over on CAPS, fully 1,698 of the 8,338 members who have rated Citigroup -- some 20% -- believe the stock will underperform the S&P 500 going forward. These bears include bankerman13 and EmmaBem.

Last month, bankerman13 tapped Citigroup as a zombie that needs to be slayed:

This bank is running on government batteries. It won't show a profit for several years to amount to anything. ... Another GM and it keeps all the other banks from showing the improvement they deserve. Break it up. It's worth more that way than being a socialistic run bank.

In a more recent pitch, EmmaBem singled out the stock as a relatively unattractive banking option:

I really want to like Citi, it is so cheap and with the performance of the other banks, I have to think Citi will become a profitable giant once again. But then, I say to myself, why gamble on Citi when you can invest in Bank of America or Wells Fargo, both are still cheap and promise much less government intervention and much more profit. Citi may end up above $5 by the end of the year, but, for my money, [Bank of America] or [Wells Fargo] are a safer and equally profitable investment.

What do you think about Citigroup, or any other stock for that matter?

No comments: