GrowthTurtle
Data Science PhD & IEEE Fellow, Ex-Two Sigma
Citizens Financial looks cheap against its earnings, at 14x trailing and 10x next year's when banks usually get 12x. Fair value is $69.04-$87.87, or 12x next year's $6.54 EPS give or take 12%, so at $63.07 it trades 9% below the low end; it gets expensive above $73.44. The view leans on forecasts, with forward earnings 42% above trailing, and is levels only, with no fundamental work. x.com
JPMorgan looks remarkably cheap against nearly every other bank despite being the best of them. Its forward P/E looks to be around 13. x.com
Citizens Financial Group is the favorite regional bank play because it will benefit from falling oil, inflation and interest rates. MarketSurge has detected a cup-and-handle pattern with 18% depth, pointing to a target of 78. x.com
Société Générale combines improving returns with a cheap valuation. Return on tangible equity is rising while costs and risk-weighted assets fall and BoursoBank keeps growing, yet the shares trade at 7.1x forward earnings and 0.9x tangible book. Citi reiterates its Buy rating with a new €90 target, sizing BoursoBank as a bank within a bank. x.com
Citigroup's rally looks overdone. It is not a super-premium franchise, yet the stock has tripled since 2023. CEO Jane Fraser's plan is working and the shares were far cheaper than other money-center banks for the past decade, as @RAMCOCAPITAL notes, but the market seems to be making the wrong call on whether Citi is a credit card issuer or an investment bank and broker, though that view could be mistaken. x.com x.com
