Citigroup’s 50% Surge Raises the Question: Is It Still a Smart Buy?
Is Citigroup Stock a Buy Now?
Citigroup has had a great run in the stock market, which makes buying it a bit of a stretch right now. The bank's stock has climbed sharply over the past year, rising by 50% and outperforming both the broader banking sector and the S&P 500 index. Yet, despite the gains, some analysts suggest caution before buying in at current levels.
Under CEO Jane Fraser, Citigroup has seen earnings per share grow from $1.51 in 2024 to $1.86 in 2025, excluding one-off items. The bank's valuation ratios, however, now sit above their five-year averages. Its price-to-earnings (P/E) ratio stands at around 15, price-to-book (P/B) at roughly 1, and dividend yield at 2.2%.
Citigroup's strong performance and steady earnings growth have pushed its stock price to levels that match or exceed historical averages. For those seeking undervalued opportunities, the stock's current pricing may not present an obvious bargain. The decision to invest now depends on whether buyers believe further upside remains justified.
