Citigroup Inc., a diversified financial service holding company, provides various financial product and services to consumers, corporations, governments, and institutions worldwide. It operates through five segments: Services, Markets, Banking, U.S. Personal Banking, and Wealth. The Services segment includes Treasury and Trade Solutions, which provides cash management, trade, and working capital solutions to multinational corporations, financial institutions, and public sector organizations; and Securities Services, such as cross-border support for clients, local market expertise, post-trade technologies, data solutions, and various securities services solutions. The Markets segment offers sales and trading services for equities, foreign exchange, rates, spread products, and commodities to corporate, institutional, and public sector clients; and market-making services, including asset classes, risk management solutions, financing, prime brokerage, research, securities clearing, and settlement. The banking segment includes investment banking; advisory services related to mergers and acquisitions, divestitures, restructurings, and corporate defense activities; and corporate lending, which includes corporate and commercial banking. The U.S. Personal Banking segment provides co-branded cards and retail banking services. The Wealth segment provides financial services to high-net-worth clients through banking, lending, mortgages, investment, custody, and trust product offerings; and to professional industries, including law firms, consulting groups, accounting, and asset management. The company was founded in 1812 and is headquartered in New York, New York.

Citigroup демонстрирует смешанную картину с точки зрения фундаментальных показателей. P/E коэффициент находится выше медианы отрасли, что может указывать на переоцененность акций. Однако, компания показывает сильные результаты по EPS и прогнозу EPS, значительно превышая отраслевые медианы, что свидетельствует о высоком уровне прибыльности. Дивиденды несколько снизились, что может вызвать опасения среди инвесторов. Долговая нагрузка также вызывает беспокойство, так как коэффициент долга к капиталу значительно выше медианы, что увеличивает финансовые риски. Тем не менее, рост выручки и чистой прибыли, а также высокая стоимость активов и собственного капитала, свидетельствуют о сильных фундаментальных основах. В то же время, показатели рентабельности, такие как ROE и ROA, остаются ниже медианы, что может ограничивать потенциал роста. В целом, учитывая все вышеуказанные факторы, целесообразно пересмотреть целевую цену с учетом текущих фундаментальных недочетов и сильных сторон компании.

Citigroup, Inc.

The S&P 500 Index ($SPX) (SPY) on Thursday closed down -1.52%, the Dow Jones Industrial Average ($DOWI) (DIA) closed down -1.56%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed down -1.73%. March E-mini S&P futures (ESH26) fell -1.49%, and March E-mini Nasdaq futures (NQH26) fell -1.75%.
Stocks fell sharply on Thursday as a surge in crude oil prices stoked fears that the war against Iran would crimp global fuel supplies and boost inflation. WTI crude oil prices soared more than +9% on Thursday amid widening disruptions to crude production and transport in the Middle East.
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Stocks extended their losses on Thursday, and crude prices added to their gains on comments from Iran’s Supreme Leader Ayatollah Mojtaba Khamenei, who said that Iran’s leverage of closing the Strait of Hormuz should be used, and attacks on Gulf Arab neighbors will continue. He added that Iran will open unspecified “other fronts” in the war if the US and Israel persist with their attacks. Also, comments from President Trump gave crude prices a boost when he said that preventing Iran from having nuclear weapons is "of far greater interest and importance" to him than the cost of oil, a sign that the war in the Middle East isn't close to a de-escalation.
Credit concerns weighed on bank stocks and asset managers on Thursday after Morgan Stanley and Cliffwater LLC capped withdrawals from their private credit funds amid investor demand to redeem more than the funds allow. Private credit funds are grappling with a wave of redemption requests amid growing concerns over the quality of their loans. BlackRock last week decided to limit withdrawals, a move that other asset managers have since followed.
Crude oil prices rallied sharply on Thursday despite the IEA members' decision on Wednesday to release 400 million barrels from emergency oil stockpiles. The IEA said the war against Iran is disrupting 7.5% of global oil supply, and the conflict will cut global oil supply by 8 million bpd this month. The closure of the Strait of Hormuz, through which about a fifth of the world’s oil and natural gas flows, has choked off oil and gas flows due to Iran’s attacks on shipping in the waterway and forced Gulf producers to cut output because they can’t export from the region. UK Defense Secretary Healey said Thursday that it is increasingly evident that Iran is laying mines in the Strait of Hormuz, which could keep the strait closed for the foreseeable future.
Iran’s President Masoud Pezeshkian said his country would need “firm international guarantees against future aggression” to accept a ceasefire as well as reparations. However, comments from President Trump late Wednesday suggest the conflict could continue for weeks when he said that it would be unwise for the US to wind down hostilities too soon.
US economic news on Thursday was mixed for stocks after weekly jobless claims rose less than expected, a sign of labor market strength. Also, Jan housing starts unexpectedly rose to an 11-month high, but Jan building permits fell to a 5-month low.
US weekly initial unemployment claims fell -1,000 to 213,000, showing a stronger labor market than expectations of an increase to 215,000.
US Jan housing starts unexpectedly rose +7.2% m/m to an 11-month high of 1.487 million, stronger than expectations of a decline to 1.341 million. Jan building permits, a proxy for future construction, fell -5.4% m/m to a 5-month low of 1.376 million, weaker than expectations of 1.410 million.
The US Jan trade deficit shrank to -$54.5 billion, narrower than expectations of -$66.0 billion.
Q4 earnings season is nearly over, with more than 98% of the S&P 500 companies having reported earnings results. Earnings have been a positive factor for stocks, with 74% of the 495 S&P 500 companies that have reported beating expectations. According to Bloomberg Intelligence, S&P earnings growth is expected to climb by +8.4% in Q4, marking the tenth consecutive quarter of year-over-year growth. Excluding the Magnificent Seven megacap technology stocks, Q4 earnings are expected to increase by +4.6%.
The markets are discounting a 0% chance for a -25 bp FOMC rate cut at the next policy meeting on March 17-18.
Overseas stock markets settled lower on Thursday. The Euro Stoxx 50 closed down -0.79%. China's Shanghai Composite fell from a 1-week high and closed down -0.10%. Japan's Nikkei Stock 225 closed down -1.04%.
Interest Rates
June 10-year T-notes (ZNM6) on Thursday closed down by -18.5 ticks. The 10-year T-note yield rose +3.9 bp to 4.269%. June T-notes fell to a 5-week low on Thursday, and the 10-year T-note yield climbed to a 5-week high of 4.275%. Thursday’s +9% rally in oil prices raised inflation expectations and undercut T-note prices. Also, concerns that the cost of the ongoing war against Iran will boost the US budget deficit are bearish for T-notes. On the positive side for T-notes on Thursday was strong demand for the Treasury’s $22 billion auction of 30-year T-bonds that had a bid-to-cover ratio of 2.45, above the 10-auction average of 2.39.
European government bond yields moved higher on Thursday. The 10-year German bund yield rose to a 2.25-year high of 2.962% and finished up +2.5 bp to 2.957%. The 10-year UK gilt yield climbed to a 6.25-month high of 4.800% and finished up +8.7 bp to 4.773%.
The European Union's economy chief, Valdis Dombrovskis, said the inflation rate could surpass 3% this year, and GDP in the Eurozone could be as much as -0.4 points lower if the war in the Middle East causes crude oil prices to remain around $100 per barrel and gas prices stay elevated for an extended period.
Swaps are discounting a 3% chance of a -25 bp ECB rate hike at its next policy meeting on March 19.
US Stock Movers
Airline stocks and cruise line operators sold off on Thursday amid a 9% surge in crude oil prices, which are boosting companies’ fuel costs and threatening earnings. Carnival (CCL) and Southwest Airlines (LUV) closed down more than -7%, and Alaska Air Group (ALK) and Royal Caribbean Cruises (RCL) closed down more than -6%. Also, United Airlines Holdings (UAL), Norwegian Cruise Line Holdings (NCLH), and American Airlines Group (AAL) closed down more than -4%. In addition, Delta Airlines (DAL) closed down more than -2%.
Chip stocks retreated on Thursday, weighing on the broader market. Intel (INTC) closed down more than -5%, and Lam Research (LRCX), ARM Holdings Plc (ARM), Microchip Technology (MCHP), and Texas Instruments (TXN) closed down more than -4%. Also, Applied Materials (AMAT), KLA Corp (KLAC), Analog Devices (ADI), Advanced Micro Devices (AMD), Micron Technology (MU), and Marvell Technology (MRVL) closed down more than -3%.
Credit concerns weighed on bank stocks and asset managers on Thursday after Morgan Stanley and Cliffwater LLC capped withdrawals from their private credit funds amid investor demand to redeem more than the funds allow. Ares Management (ARES) closed down more than -6%, and
Goldman Sachs (GS) closed down more than -4% to lead losers in the Dow Jones Industrials. Also, Morgan Stanley (MS), KKR & Co (KKR), and Citigroup (C) closed down more than -3%.
The Magnificent Seven technology stocks fell on Thursday, pressuring the broader market. Tesla (TSLA) closed down more than -3%, and Meta Platforms (META) closed down more than -2%. Also, Alphabet (GOOGL), Apple (AAPL), Amazon.com (AMZN), and Nvidia (NVDA) closed down more than -1%, and Microsoft (MSFT) closed down -0.73%.
Fertilizer stocks rallied on Thursday amid supply disruptions from the closure of the Strait of Hormuz. CF Industries Holdings (CF) closed up more than +13% to lead gainers in the S&P 500. Also, Intrepid Potash (IPI) closed up more than +10%, and Mosaic (MOS) closed up more than +7%.
Energy producers and service providers rose on Thursday after crude prices jumped more than +9%. ConocoPhillips (COP), Chevron (CVX), Phillips 66 (PSX), and Valero Energy (VLO) closed up more than -2%. Also, APA Corp (APA), Devon Energy (DVN), Exxon Mobil (XOM), and Marathon Petroleum (MPC) closed up more than +1%.
Netskope (NTSK) closed down more than -21% after forecasting a Q1 adjusted net loss per share of -6 cents to -7 cents, wider than Q4’s -4 cent EPS loss.
G-III Apparel Group Ltd (GIII) closed down more than -11% after reporting Q4 net sales of $771.5 million, below the consensus of $791.8 million.
UiPath (PATH) closed down more than -7% after reporting Q4 subscription revenue of $251.2 million, below the consensus of $252.1 million.
Dollar General (DG) closed down more than -6% after giving an underwhelming 2027 comparable sales forecast of up +2.2% to +2.7%, the midpoint right on the consensus of +2.45%.
GlobalFoundries (GFS) closed down more than -5% after a subsidiary of Mubadala Investment Co. was said to sell as much as $852 million of its stake in the stock overnight at $41.60 to $42.60 per share.
MercadoLibre (MELI) closed down more than -4% after JPMorgan Chase downgraded the stock to neutral from overweight.
LyondellBasell Industries NV (LYB) closed up more than +10% after Citigroup upgraded the stock to buy from neutral with a price target of $76.
Dow Inc. (DOW) closed up more than +9% after Citigroup upgraded the stock to buy from neutral with a price target of $40.
Occidental Petroleum (OXY) closed up more than +5% after Wells Fargo Securities double upgraded the stock to overweight from underweight with a price target of $69.
Earnings Reports(3/13/2026)
4D Molecular Therapeutics Inc (FDMT), Actuate Therapeutics Inc (ACTU), AirSculpt Technologies Inc (AIRS), AlTi Global Inc (ALTI), American Vanguard Corp (AVD), Avidity Biosciences Inc (RNAM), Better Home & Finance Holding (BETR), Bit Digital Inc (BTBT), Blue Foundry Bancorp (BLFY), Buckle Inc/The (BKE), CapsoVision Inc (CV), Citizens Inc/TX (CIA), Emerald Holding Inc (EEX), Eve Holding Inc (EVEX), GoHealth Inc (GOCO), Gossamer Bio Inc (GOSS), John Marshall Bancorp Inc (JMSB), LENSAR Inc (LNSR), MeiraGTx Holdings plc (MGTX), NET Lease Office Properties (NLOP), Perma-Fix Environmental Services (PESI), Value Line Inc (VALU), Waldencast plc (WALD).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Stocks Slump on Iran War and Credit Woes

The S&P 500 Index ($SPX) (SPY) today is down -1.22%, the Dow Jones Industrial Average ($DOWI) (DIA) is down -1.32%, and the Nasdaq 100 Index ($IUXX) (QQQ) is down -1.46%. March E-mini S&P futures (ESH26) are down -1.20%, and March E-mini Nasdaq futures (NQH26) are down -1.40%.
Stocks are under pressure today as crude oil prices keep rising amid widening disruptions to production and transport in the Middle East. WTI crude oil prices are up more than +9% today after Iraq suspended oil terminal activity following an attack by Iran on two tankers. Oman also temporarily evacuated a key oil export hub at Mina Al Fahal, and Iran escalated attacks on Dubai.
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Stocks extended their losses today, and crude prices added to their gains on comments from Iran’s Supreme Leader Ayatollah Mojtaba Khamenei, who said that Iran’s leverage of closing the Strait of Hormuz should be used and attacks on Gulf Arab neighbors will continue. He added that Iran will open unspecified “other fronts” in the war if the US and Israel persist with their attacks.
Credit concerns are weighing on bank stocks and asset managers today after Morgan Stanley and Cliffwater LLC capped withdrawals from their private credit funds amid investor demand to redeem more than the funds allow. Private credit funds are grappling with a wave of redemption requests amid growing concerns over the quality of their loans. BlackRock last week decided to limit withdrawals, a move that other asset managers have since followed.
Crude oil prices are moving higher today despite the IEA members' decision on Wednesday to release 400 million barrels from emergency oil stockpiles. The IEA said the war against Iran is disrupting 7.5% of global oil supply, and the conflict will cut global oil supply by 8 million bpd this month. The closure of the Strait of Hormuz, through which about a fifth of the world’s oil and natural gas flows, has choked off oil and gas flows due to Iran’s attacks on shipping in the waterway and forced Gulf producers to cut output because they can’t export from the region.
Iran’s President Masoud Pezeshkian said his country would need “firm international guarantees against future aggression” to accept a ceasefire as well as reparations. However, comments from President Trump late Wednesday suggest the conflict could continue for weeks when he said that it would be unwise for the US to wind down hostilities too soon.
US economic news today was mixed for stocks after weekly jobless claims rose less than expected, a sign of labor market strength. Also, Jan housing starts unexpectedly rose to an 11-month high, but Jan building permits fell to a 5-month low.
US weekly initial unemployment claims fell -1,000 to 213,000, showing a stronger labor market than expectations of an increase to 215,000.
US Jan housing starts unexpectedly rose +7.2% m/m to an 11-month high of 1.487 million, stronger than expectations of a decline to 1.341 million. Jan building permits, a proxy for future construction, fell -5.4% m/m to a 5-month low of 1.376 million, weaker than expectations of 1.410 million.
The US Jan trade deficit shrank to -$54.5 billion, narrower than expectations of -$66.0 billion.
Q4 earnings season is nearly over, with more than 95% of the S&P 500 companies having reported earnings results. Earnings have been a positive factor for stocks, with 74% of the 492 S&P 500 companies that have reported beating expectations. According to Bloomberg Intelligence, S&P earnings growth is expected to climb by +8.4% in Q4, marking the tenth consecutive quarter of year-over-year growth. Excluding the Magnificent Seven megacap technology stocks, Q4 earnings are expected to increase by +4.6%.
The markets are discounting a 0% chance for a -25 bp FOMC rate cut at the next policy meeting on March 17-18.
Overseas stock markets are lower. The Euro Stoxx 50 is down -1.30%. China's Shanghai Composite fell from a 1-week high and closed down -0.10%. Japan's Nikkei Stock 225 closed down -1.04%.
Interest Rates
June 10-year T-notes (ZNM6) are down by -8 ticks. The 10-year T-note yield is up +1.4 bp to 4.243%. June T-notes fell to a 5-week low today, and the 10-year T-note yield climbed to a 5-week high of 4.249%. Today’s +9% rally in oil prices is raising inflation expectations and undercutting T-note prices. Also, concerns that the cost of the ongoing war against Iran will boost the US budget deficit are bearish for T-notes. In addition, supply pressures are weighing on T-notes as the Treasury will auction $22 billion of 30-year bonds later today.
European government bond yields are moving higher today. The 10-year German bund yield rose to a 2.25-year high of 2.962% and is up +1.6 bp to 2.948%. The 10-year UK gilt yield is up +9.7 bp to 4.784%.
The European Union's economy chief, Valdis Dombrovskis, said the inflation rate could surpass 3% this year and GDP in the Eurozone could be as much as -0.4 points lower if the war in the Middle East causes crude oil prices to remain around $100 per barrel and gas prices stay elevated for an extended period.
Swaps are discounting a 3% chance of a -25 bp ECB rate hike at its next policy meeting on March 19.
US Stock Movers
Airline stocks and cruise line operators are falling today due to the 8% surge in crude oil prices, which are boosting companies’ fuel costs and threatening earnings. Carnival (CCL) and Royal Caribbean Cruises (RCL) are down more than -6%, and United Airlines Holdings (UAL) is down more than -4%. Also, Norwegian Cruise Line Holdings (NCLH), American Airlines Group (AAL), Alaska Air Group (ALK), and Southwest Airlines (LUV) are down more than -3%. In addition, Delta Airlines (DAL) is down more than -2%.
Chip stocks are sliding today, weighing on the broader market. Lam Research (LRCX), Applied Materials (AMAT), ARM Holdings Plc (ARM), Micron Technology (MU), and Intel (INTC) are down more than -4%. Also, ASML Holding NV (ASML), Analog Devices (ADI), Advanced Micro Devices (AMD), KLA Corp (KLAC), Microchip Technology (MCHP), and Texas Instruments (TXN) are down more than -3%.
Credit concerns are weighing on bank stocks and asset managers today after Morgan Stanley and Cliffwater LLC capped withdrawals from their private credit funds amid investor demand to redeem more than the funds allow. Morgan Stanley (MS) and KKR & Co (KKR) are down more than -4%. Also, Goldman Sachs (GS) is down more than -3% to lead losers in the Dow Jones Industrials. In addition, Citigroup (C) and Ares Management (ARES) are down more than -3%.
Fertilizer stocks are climbing today amid supply disruptions from the closure of the Strait of Hormuz. CF Industries Holdings (CF) is up more than +10% to lead gainers in the S&P 500. Also, Intrepid Potash (IPI) is up more than +8%, and Mosaic (MOS) is up more than +5%.
Netskope (NTSK) is down more than -24% after forecasting a Q1 adjusted net loss per share of -6 cents to -7 cents, wider than Q4’s -4 cent EPS loss.
G-III Apparel Group Ltd (GIII) is down more than -12% after reporting Q4 net sales of $771.5 million, below the consensus of $791.8 million.
GlobalFoundries (GFS) is down more than -6% after a subsidiary of Mubadala Investment Co. was said to sell as much as $852 million of its stake in the stock overnight at $41.60 to $42.60 per share.
Dollar General (DG) is down more than -5% after giving an underwhelming 2027 comparable sales forecast of up +2.2% to +2.7%, the midpoint right on the consensus of +2.45%.
UiPath (PATH) is down more than -5% after reporting Q4 subscription revenue of $251.2 million, below the consensus of $252.1 million.
MercadoLibre (MELI) is down more than -5% to lead losers in the Nasdaq 100 after JPMorgan Chase downgraded the stock to neutral from overweight.
Dow Inc. (DOW) is up more than +6% after Citigroup upgraded the stock to buy from neutral with a price target of $40.
LyondellBasell Industries NV (LYB) is up more than +5% after Citigroup upgraded the stock to buy from neutral with a price target of $76.
Occidental Petroleum (OXY) is up more than +4% after Wells Fargo Securities double upgraded the stock to overweight from underweight with a price target of $69.
Atlassian Corp (TEAM) is up more than +2% after announcing a restructuring that will eliminate about 10% of its workforce. UBS upgraded the stock to buy from neutral with a price target of $97.
Earnings Reports(3/12/2026)
Dollar General Corp (DG), Ulta Beauty Inc (ULTA), Lennar Corp (LEN), Adobe Inc (ADBE).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
More news from Barchart
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Stocks Retreat Amid Rising Crude Prices and Credit Worries

At the Royal Bank of Canada Global Financial Institutions Conference on Tuesday, Bank of America BAC co-president Dean Athanasia struck an upbeat tone on the company’s capital markets business for the first quarter of 2026. The comments lifted investor sentiment, with BAC shares rising 1.4% by the close and snapping the losing streak from last week.
Athanasia noted that investment banking (IB) fees have grown nearly 10% year over year so far this quarter. In the fourth quarter of 2025, IB fees of $1.67 billion were up marginally year over year as the plunge in equity underwriting income was more than offset by higher advisory revenues and stable debt underwriting income. The Zacks Consensus Estimate for IB fees is pegged at $1.85 billion for the ongoing quarter.
Further, Bank of America’s Global Markets revenues are projected to increase at a low double-digit rate in the first quarter of 2026, driven by elevated volatility and robust client activity. Athanasia said, “We've got, whatever it is, 15, 16 more days left of trading that we'll see where the results go, but a lot of activity.” He cautioned, however, that volatility arising from the conflict in the Middle East could still pressure results by the end of the quarter. Even with this risk, the Global Markets unit is on track to record its 16th consecutive quarter of year-over-year growth in sales and trading revenues. In the previous quarter, BAC generated $4.52 billion in sales and trading revenues, up 10% from a year earlier. The consensus estimate for first-quarter 2026 sales and trading revenues is pegged at $5.32 billion.
Additionally, in wealth management, Athanasia noted that "fees are up double-digits. That's good for the first quarter.” Bank of America’s net interest income is anticipated to increase 7% year over year on the back of decent loan and deposit growth.
With sales and trading, IB and wealth management accounting for more than 50% of Bank of America’s fee income, ongoing momentum in these areas should drive solid growth. The consensus estimate for non-interest income is $14.02 billion, suggesting a rise of 9% from the prior-year quarter.
What Does BAC’s Peers Expect for IB & Trading in Q1?
Like Bank of America, JPMorgan JPM and Citigroup C are expected to witness robust capital markets performance in the first quarter of 2026.
During the February company update, JPMorgan struck a notably constructive tone on deal activity and capital markets momentum. Management expects IB fees to rise in the mid-teen percentage in the first quarter of 2026, potentially trending toward the high teens. In terms of the trading business, JPMorgan projects markets revenues to grow in the mid-teen range as well, supported by elevated volumes during bouts of volatility.
Citigroup, at the Royal Bank of Canada Global Financial Institutions Conference, reiterated its strategic priorities and financial targets, highlighting strong growth opportunities despite persistent geopolitical and macroeconomic uncertainties. Citigroup expects first-quarter 2026 IB fees and markets revenues (equities and fixed income) to grow in the mid-teens year over year, supported by deal-making and equity capital markets activities.
BAC’s Price Performance & Zacks Rank
Shares of Bank of America have lost 11.9% in the past three months compared with the industry’s 9.2% decline.
Image Source: Zacks Investment Research
Bank of America currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

BAC's Fee Income to Benefit From Solid Q1 Capital Markets Performance

Citigroup Inc. C reiterated its strategic priorities and financial targets, highlighting strong growth opportunities despite persistent geopolitical and macroeconomic uncertainties. CEO Jane Fraser discussed these factors, along with many others, at the 2026 RBC Capital Markets Global Financial Institutions Conference held on Tuesday.
Fraser stated that strong economic trends support the bank’s outlook. U.S. corporate activity remains strong due to investment in artificial intelligence (AI), automation, tech upgrades, and a solid merger and acquisition (M&A) trend. Rise in consumer spending and a favorable corporate backdrop, supported by deregulation and tax benefits, is further encouraging business expansion.
Fraser also noted that the integration of the U.S. Retail Bank with its Wealth Management division is expected to enhance the client experience, increase wallet share and support revenue growth through a more seamless referral network and expanded investment offerings, including alternatives and core wealth products. These developments will likely support C’s performance in the upcoming period.
Citigroup expects first-quarter 2026 investment banking (IB) fees and markets revenues (equities and fixed income) to grow year over year in the mid-teens, supported by strong M&A and equity capital markets activity. The company also reaffirmed its 2026 operating efficiency target of 60%, though the first quarter will likely reflect some front-loaded severance costs related to its ongoing restructuring initiatives.
Citigroup’s business turnaround progress is getting reflected in its stock performance. Over the past year, the stock has appreciated 60.3%, outperforming the industry’s 30.9% growth. It has also pulled ahead of key peers, with Bank of America BAC rising 21.6% and Wells Fargo WFC gaining 13.5%.
Price Performance
Image Source: Zacks Investment Research
With the bank reaffirming its growth outlook and executing its strategic transformation, investors are increasingly asking: Is Citigroup’s rally sustainable, or has the stock already priced in the optimism? To answer that, it is worth examining the key drivers, risks and valuation factors that could shape Citigroup’s trajectory in the months ahead.
Factors to Consider for Citigroup
From Complexity to Focus: CEO Jane Fraser continues to advance the company’s multi-year strategy to streamline operations and focus on its core businesses. Since announcing plans in April 2021 to exit consumer banking in 14 markets across Asia and EMEA.
In February 2026, Citigroup completed the sale of its Russia-based banking subsidiary, AO Citibank, to Renaissance Capital. The sale of AO Citibank strengthens Citigroup’s capital position and streamlines its balance sheet. The transaction is expected to provide an estimated benefit of $4 billion to the company’s Common Equity Tier 1 capital in the first quarter of 2026. In February 2026, C announced agreements with several investors for commitments to purchase an aggregate 24% equity stake in Grupo Financiero Banamex, S.A. de C.V (Banamex), following the divestiture of a 25% stake in Banamex to a Mexican business leader in December 2025. The company is now preparing for a planned initial public offering (IPO) of its Mexican consumer, and small and middle-market banking units.
In May 2025, C announced an agreement to sell its consumer banking business in Poland, while in June 2024, it sold its China-based consumer wealth portfolio. As part of its strategy, Citigroup continues to make progress with the wind-down of its Korea consumer banking operations. At the 2026 RBC Conference, C noted that the transformation program progress is now at more than 80% target state.
These initiatives will free up capital and help the company pursue investments in wealth management and IB operations, which will stoke fee income growth. Supported by these initiatives, Citigroup expects revenues to see a 4-5% compound annual growth rate (CAGR) through 2026.
Push for Efficiency: The company continues to focus on streamlining processes and platforms, and driving automation to reduce manual touchpoints. Citigroup is increasingly deploying AI tools to support these efforts. At the 2026 RBC Conference, management stated that AI is a central theme across businesses, driving productivity, revenue opportunities and improved client servicing.
In support of this strategy, the company signed a multi-year agreement this week with LSEG to modernize its enterprise-wide data infrastructure. The initiative spans markets, investment banking, wealth management, trading and risk functions, aiming to improve data quality, standardization and accessibility across the organization. Management expects these upgrades to enable more data-driven decisions while delivering operational efficiencies at scale.
The company also announced an organizational realignment to simplify its governance structure by eliminating various management layers. Pursuant to this, the company changed its operating model and the leadership structure. This resulted in a streamlined and straightforward management structure aligned with and supporting the bank's strategy of increased spans of control and significantly reduced bureaucracy and unnecessary complexity.
In January 2024, the bank announced plans to cut 20,000 jobs, approximately 8% of its global staff, by 2026. The bank has already made significant progress by reducing its headcount by more than 10,000 employees. Management noted that there is a reduction of stranded costs due to exits in Russia, China and other markets.
Given such efforts, the company expects to achieve $2-2.5 billion in annualized run rate savings by 2026. Management continues to target a return on tangible common equity (ROTCE) of 10-11% in 2026.
ROTCE
Image Source: Citigroup, Inc.
Interest Rate Cuts: Following the initial easing in 2024 and three subsequent rate cuts in 2025, interest rates stand at 3.50-3.75% currently.With declining rates, lending activity is set to improve. Also, easing regulatory capital requirements will help channel excess capital into loan growth, particularly within the resilient commercial and consumer segments. Hence, Citigroup is likely to witness a decent demand for loans, which will support net interest income (NII) expansion.
NII witnessed a three-year compounded annual growth rate (CAGR) of 6.2% (ended 2025). Management expects NII, excluding markets, to increase 5-6% year over year in 2026, supported by lower funding costs, increased loan volumes and repricing of maturing assets into higher yields.
NII Outlook
Image Source: Citigroup, Inc.
Solid Liquidity Aids Capital Distribution: C enjoys a strong liquidity position. As of Dec. 31, 2025, Citigroup’s cash and due from banks and total investments aggregated to $476.7 billion, while its total debt (short-term and long-term borrowing) was $335.8 billion.
Post-clearing the 2025 Fed stress test, the company hiked its dividend 7.1% to 60 cents per share. In the past five years, it has raised its dividends three times. The company has a payout ratio of 30%. It has a dividend yield of 2.3%. Wells Fargo has raised its dividend six times in the past five years, while Bank of America has increased its dividend five times in the past five years.
In January 2025, Citigroup's board of directors approved a $20-billion common stock repurchase program with no expiration date. As of Dec. 31, 2025, $6.8 billion worth of authorization remained available. Supported by a strong capital and liquidity position, its capital distribution activities seem sustainable.
Asset Quality: Citigroup’s asset quality has been deteriorating. While the company recorded negative provisions in 2021, a substantial jump in provisions was recorded in the years after that because of the worsening macroeconomic outlook. The metric saw a CAGR of 24.5% from 2022 to 2025. C’s asset quality is less likely to improve much in the near term as the impacts of trade policy and the ongoing U.S.-Iran conflict are likely to put pressure on prices, thus keeping inflation high in the near term.
Estimates Signal Accelerating Growth Momentum for C
The Zacks Consensus Estimate for Citigroup’s 2026 and 2027 earnings implies year-over-year rallies of 27.9% and 18.4%, respectively. The estimate for 2026 has been unchanged over the past month, while the estimate for 2027 has been revised upward during the same period.
Estimate Revision Trend
Image Source: Zacks Investment Research
From a valuation standpoint, C trades at a forward price-to-earnings (P/E) ratio of 10.32X, below the industry’s average of 13.01X. Its peers, Bank of America and Wells Fargo, trade at P/E multiples of 10.94X and 11.04X, respectively.
Price-to-Earnings F12M
Image Source: Zacks Investment Research
Final Thoughts on C Stock
Overall, Citigroup appears well-positioned for continued growth, supported by its ongoing strategic transformation, cost-efficiency initiatives and an improving revenue outlook across IB, markets and wealth management. The bank is also benefiting from supportive macro trends, including stronger corporate activity, resilient consumer spending and the potential for higher loan demand as interest rates gradually decline. At the same time, investments in technology and artificial intelligence, along with workforce optimization, are expected to drive long-term efficiency gains and enhance productivity.
From a valuation standpoint, the C stock trades at a discount to the broader banking industry and key peers, indicating potential upside if it successfully executes its strategy and delivers on its projected earnings growth.
That said, investors should remain mindful of risks, such as weakening asset quality, geopolitical tensions and broader macroeconomic uncertainties, which could pressure credit costs and profitability in the near term.
Overall, C’s improving fundamentals, strong capital position and attractive valuation make the stock a compelling hold for long-term investors. However, those considering a new position may benefit from waiting for a more favorable entry point.
Citigroup currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Radical New Technology Could Hand Investors Huge Gains
Quantum Computing is the next technological revolution, and it could be even more advanced than AI.
While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.
Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power.
Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.
See Top Quantum Stocks Now >>
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

C's Turnaround Strengthens Growth Outlook: Should You Buy the Stock?

For Morgan Stanley MS, collaborations have become a key pillar of long-term growth. By partnering with technology firms, digital-asset infrastructure providers and private-market platforms, the global investment bank is expanding its capabilities, improving operational efficiency and entering new markets.
These partnerships are expected to strengthen its competitive position and support sustainable expansion over the coming years.
Some Notable Morgan Stanley Collaborations
In January 2026, Morgan Stanley acquired EquityZen, a platform for trading shares of private companies, reflecting its strategy to deepen exposure to high-growth private firms that are staying private longer. The platform connects investors with employees and early stakeholders seeking liquidity, enabling the bank to broaden investment opportunities for its wealth-management clients.
In September 2025, Morgan Stanley teamed up with crypto infrastructure provider Zerohash to enable cryptocurrency trading on its E*TRADE platform. Under this partnership, MS plans to allow E*TRADE clients to trade major cryptocurrencies such as Bitcoin, Ether and Solana, with the rollout expected to begin in the first half of 2026. Zerohash will provide the backend infrastructure for crypto trading, including services, such as liquidity, custody and settlement. The move reflects Morgan Stanley’s broader strategy to expand into digital assets and compete with platforms that already offer crypto trading, while integrating digital assets into its existing wealth-management and retail-brokerage ecosystem.
Morgan Stanley has also developed a long-standing partnership with Snowflake, a data-cloud company that powers many of the bank’s analytics and artificial intelligence (AI) initiatives. Over the past several years, the collaboration has evolved from basic data warehousing to advanced AI-driven workloads that enhance customer insights, operational efficiency and regulatory compliance.
Along with the above-mentioned collaborations, Morgan Stanley’s partnership with Mitsubishi UFJ Financial Group, Inc. is expected to keep supporting profitability. In 2023, the companies announced plans to deepen their 15-year alliance by merging certain operations within their Japanese brokerage joint ventures. The new alliance saw combined Japanese equity research, sales and execution services for institutional clients at Mitsubishi UFJ Morgan Stanley Securities and Morgan Stanley MUFG Securities.
Overall, strategic collaborations allow Morgan Stanley to access new technologies, markets and client segments without building every capability internally. If these collaborations continue to deliver new products, efficiencies and revenue opportunities, they will play a significant role in supporting Morgan Stanley’s long-term expansion.
Morgan Stanley’s Competitive Landscape
Peers of Morgan Stanley like Citigroup C and JPMorgan JPM have also entered collaborations to strengthen their technology capabilities, expand lending platforms and improve client services. These partnerships illustrate how large investment banks are increasingly relying on alliances to accelerate innovation and market expansion.
Citigroup has been broadening its presence in the lucrative private lending business through collaborations. In September 2025, Citigroup launched an $80-billion customized portfolio offering with BlackRock, providing clients with tailored exposure across public and private markets. In June 2025, the company announced a partnership with Carlyle Group to expand asset-based private credit opportunities in the fintech specialty lending space.
The collaboration combines Carlyle’s structuring expertise with Citigroup’s SPRINT (Spread Products Investment in Technologies) team and market reach to co-invest in tailored financing solutions.
JPMorgan has collaborated with fintech firms to enhance lending and payments capabilities. For example, the bank partnered with OnDeck to streamline small-business lending. By using OnDeck’s digital loan-processing technology, JPMorgan has been able to speed up approval times and improve access to credit for small businesses, strengthening its position in the commercial lending market.
Morgan Stanley’s Price Performance, Valuation & Estimates
In the past six months, the company’s shares have gained 2.5% against the industry’s 2.4% decline.
Image Source: Zacks Investment Research
From a valuation standpoint, MS trades at a 12-month forward price-to-earnings (P/E) of 14.27X, above the industry average of 13.03X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Morgan Stanley’s 2026 earnings suggests an 8.6% rise on a year-over-year basis, while 2027 earnings are expected to grow 7%. In the past 30 days, earnings estimates for 2026 and 2027 have moved upward.
Image Source: Zacks Investment Research
Currently, MS carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
(We are reissuing this article to correct a mistake. The original article issued on March 10, 2026, should no longer be relied upon.)
Radical New Technology Could Hand Investors Huge Gains
Quantum Computing is the next technological revolution, and it could be even more advanced than AI.
While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.
Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power.
Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.
See Top Quantum Stocks Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Will Morgan Stanley's Strategic Collaborations Drive Long-Term Growth? (Revised)

The best performing sector as of midday Tuesday is the Consumer Products sector, higher by 0.6%. Within the sector, Tapestry Inc (Symbol: TPR) and Estee Lauder Cos., Inc. (Symbol: EL) are two of the day's stand-outs, showing a gain of 4.0% and 3.5%, respectively. Among consumer products ETFs, one ETF following the sector is the iShares U.S. Consumer Goods ETF (Symbol: IYK), which is up 0.2% on the day, and up 10.36% year-to-date. Tapestry Inc, meanwhile, is up 18.76% year-to-date, and Estee Lauder Cos., Inc., is down 8.12% year-to-date.
The next best performing sector is the Financial sector, up 0.5%. Among large Financial stocks, Citigroup Inc (Symbol: C) and Interactive Brokers Group Inc - Class A (Symbol: IBKR) are the most notable, showing a gain of 3.9% and 3.1%, respectively. One ETF closely tracking Financial stocks is the Financial Select Sector SPDR ETF (XLF), which is up 0.5% in midday trading, and down 7.68% on a year-to-date basis. Citigroup Inc, meanwhile, is down 4.59% year-to-date, and Interactive Brokers Group Inc - Class A is up 8.31% year-to-date. Combined, C and IBKR make up approximately 3.2% of the underlying holdings of XLF.
Comparing these stocks and ETFs on a trailing twelve month basis, below is a relative stock price performance chart, with each of the symbols shown in a different color as labeled in the legend at the bottom:
Here's a snapshot of how the S&P 500 components within the various sectors are faring in afternoon trading on Tuesday. As you can see, six sectors are up on the day, while three sectors are down.
Technology & Communications
+0.4%
Also see:
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Tuesday Sector Leaders: Consumer Products, Financial

Citigroup, Inc. C expects its net interest income (NII) excluding markets to rise 5-6% on a year over year basis in 2026, following 6% growth in 2025 to $49.8 billion. Management sees business mix, loan growth and reinvestment income as the primary drivers.
2026 NII Outlook
Image Source: Citigroup, Inc.
The outlook is supported by strong momentum in 2025. In U.S. Personal Banking, full-year NII increased 6% to $22.5 billion, supported by 5% growth in average loans. Wealth delivered even stronger performance, with NII rising 17% to $5.3 billion, while Services posted 12% NII growth to $15 billion, driven by higher deposit balances and improved spreads. In 2026, management sees strong loan growth in Cards and Wealth businesses driven by continued product innovation, solid customer engagement and its high-quality card portfolio.
Services Segment is particularly important to Citigroup’s NII story because it provides a large global operating deposit base. In 2025, average Services deposits rose 7% to $878 billion, including 6% growth in Treasury and Trade Solutions deposits, and 12% growth in Securities Services deposits. Management expects to witness similar trends in 2026.
Another major driver is reinvestment income. C’s 2026 outlook includes continued benefits from its investment portfolio as fixed-rate securities and derivatives roll into higher-yielding instruments. Management noted that around 30% of the securities portfolio is expected to mature in 2026, with proceeds reinvested into loans, cash, securities and other assets.
The bank expects declining interest rates to partially offset NII growth. Lower policy rates can compress deposit spreads and reduce yields on floating-rate assets. Citigroup also noted that changes in the yield curve and foreign exchange rates could affect results, given its globally diversified balance sheet.
Still, Citigroup’s path to its NII target rests on four clear levers: expanding cards and wealth lending, growing deposits in Services and Wealth, reinvesting maturing securities at higher yields, and managing through a lower-rate environment. If those trends hold, C’s 5-6% NII growth target looks less like an ambitious forecast and more like a continuation of the bank’s current operating momentum.
What Do C’s Peers Say About Their 2026 NII Expectations?
The two peers of Citigroup are Bank of America BAC and JPMorgan JPM.
Bank of America expects 2026 NII to rise 5-7% year over year, following 7.2% growth in 2025. Bank of America continues to benefit from a supportive rate backdrop, productivity gains from technology investments and the earnings resilience of a diversified franchise.
JPMorgan expects NII to reach $103 billion in 2026, even as it builds against a lower rate backdrop. In 2025, NII was $95.9 billion. A part of the lift is likely to come from Markets NII. JPMorgan expects 2026 NII, excluding Markets, of $95 billion, implying Markets NII of $8 billion, an area that can be more variable than the core lending-and-deposit engine.
C’s Price Performance, Valuation & Estimates
Shares of Citigroup have gained 57.9% over the past year compared with the industry’s growth of 31.8%.
Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, C trades at a forward price-to-earnings (P/E) ratio of 10.1X, below the industry’s average of 13X.
Price-to-Earnings F12M
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for C’s 2026 and 2027 earnings implies year-over-year rallies of 27.9% and 18.4%, respectively. The estimate for 2026 has been unchanged over the past month, while the estimate for 2027 has been revised upward during the same period.
Estimate Revision Trend
Image Source: Zacks Investment Research
Currently, C carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. Little-known AI firms tackling the world's biggest problems may be more lucrative in the coming months and years.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

How Citigroup Plans to Achieve 5-6% Y/Y NII Growth in 2026?

For years, Wells Fargo & Company WFC operated under a regulatory constraint, a $1.95-trillion asset cap imposed by the Federal Reserve in 2018 following its fake account scandal. The restriction limited the bank’s ability to expand its balance sheet, constraining loan growth, deposit accumulation and overall business expansion.
Over the years, Wells Fargo invested heavily in strengthening internal controls, enhancing board oversight and addressing compliance deficiencies across its operations. The bank gradually resolved multiple regulatory orders, demonstrating steady progress in governance and risk oversight.
In June 2025, the Fed lifted the asset cap after confirming that Wells Fargo had met the conditions required under the 2018 enforcement action. The termination of the 2018 order last week marks the closure of the final remaining consent order linked to the fake-account scandal, ending nearly a decade of regulatory oversight.
The key question now is whether this regulatory relief can translate into sustainable long-term growth.
WFC: A Strategic Reset Post Regulatory Relief
The removal of the asset cap significantly expands Wells Fargo’s strategic flexibility. The bank can now grow its loan book, deposits and securities portfolio without regulatory constraints. This will lead to an increase in NII. By 2025-end, WFC’s loans increased nearly 7%, while deposits rose 6.4% since June 2025.
Equally important, Wells Fargo can now accelerate expansion in fee-generating businesses, including payment services, asset management and mortgage origination. WFC increased trading-related assets by 50% in 2025 as it is able to now utilize its balance sheet to accelerate growth in trading businesses. Additionally, the bank is strengthening its credit card portfolio, reflecting improved customer penetration and diversified fee income streams. These efforts will enhance the company’s profitability.
Operational efficiency initiatives also reinforce its growth prospects. Since 2020, Wells Fargo has streamlined its organizational structure, reduced headcount and optimized its branch network. Non-interest expenses have declined slightly over the past five years, reflecting disciplined cost management.
Reflecting this renewed flexibility and operational efficiency, management expects to achieve the medium-term return on tangible common equity (ROTCE) target of 17-18%. Achieving this level would signal stronger capital efficiency and improved profitability, suggesting that the bank’s restructuring efforts are beginning to unlock operational potential.
Other Banks’ Progress to Fix Regulatory Issues
In December 2025, Citigroup, Inc. C received notable regulatory relief after the Office of the Comptroller of the Currency removed the July 2024 amendment to the bank’s 2020 consent order. This original consent order was focused on longstanding deficiencies in risk management, data governance, internal controls and compliance. With regulatory easing, Citigroup is better-positioned to accelerate its growth and efficiency initiatives.
In September 2025, UBS Group AG UBS agreed to settle a long-running French tax case concerning its cross-border business activities between 2004 and 2012. The settlement follows years of appeals after a 2019 trial court found UBS guilty of illicit client solicitation and laundering the proceeds of tax fraud. The resolution reflects UBS Group AG’s strategy to address legacy matters while minimizing ongoing operational and financial risks.
WFC’s Price Performance & Zacks Rank
Wells Fargo’s shares have gained 17.1% over the past year compared with the industry’s growth of 31.8%.
Image Source: Zacks Investment Research
The company carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank stocks (Strong Buy) here.
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. Little-known AI firms tackling the world's biggest problems may be more lucrative in the coming months and years.
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UBS Group AG (UBS) : Free Stock Analysis Report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Can Wells Fargo Turn Regulatory Relief Into Sustainable Growth?

Key Points
Nio exceeded its own recent profit estimate in the fourth quarter.
The company also delivered strong Q1 guidance.
Investors should keep an eye on executive compensation.
Shares of Chinese electric vehicle (EV) maker Nio (NYSE: NIO) shot 10.5% higher at the market open and were still up by 10.1% as of 10:45 a.m. ET. Investors liked what the company had to say in its fourth-quarter report.
Last month, the company surprised investors by saying it expected its first-ever adjusted profit from operations in the fourth quarter. The $100 million to $172 million range was particularly strong, and Nio ended up beating the high end of it.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Nio achieves first profit
It wasn't just the $178.9 million in adjusted profit from operations that had investors excited. In fact, the company achieved a slight net profit of $40.4 million in Q4. That result was fueled by increased sales volume, an optimized product mix, and lower research and development expenses.
Nio also told investors to expect revenue to double year over year in the current quarter. Vehicle deliveries should also increase by more than 90% compared to the prior year period. The strong results led Citigroup analyst Jeff Chung to note that new models are coming soon, and future expenses can continue to drop as battery costs decline. He has a price target of $6.20 on the shares, according to Barron's. That represents 25% upside from Monday's closing price.
Investors should keep an eye on executive compensation, though. The company's board of directors approved a large 2026 stock incentive plan for founder and CEO William Li. The grant of more than 248 million shares, valued at up to $1.2 billion, will depend on meeting specific performance targets related to the stock's valuation and net profits.
Should you buy stock in Nio right now?
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Citigroup is an advertising partner of Motley Fool Money. Howard Smith has positions in Nio. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Why Did Nio Stock Jump 10% Today?

This year is turning out to be a bad one for Bank of America BAC. The stock is down 12.9% after posting two consecutive years of double-digit gains.
Also, BAC stock is trailing the S&P 500 Index, which is down 1%. Its close peers, JPMorgan JPM and Citigroup C, have fared better.
YTD Price Performance
Image Source: Zacks Investment Research
So, why is investor sentiment toward BAC bearish? While nothing seems to be fundamentally wrong with the company, external factors, including the U.S.-Iran war and AI-related apprehensions, are leading to a pessimistic stance.
Let’s assess whether this pullback presents a potential buying opportunity. Let’s analyze Bank of America’s fundamentals to understand whether this is the right time to buy the stock.
Key Factors to Keep an Eye on for Bank of America
Interest Rate Cuts: The Federal Reserve slashed rates three times last year, to a range of 3.5% to 3.75%, following a 100-basis-point (bp) cut in 2024. Being one of the most interest rate-sensitive U.S. banks, lower interest rates are expected to weigh on BAC’s net interest income (NII). Yet, fixed-rate asset repricing, higher loan and deposit balances and a gradual fall in funding costs are expected to offset the adverse impact of lower rates.
As rates decline, lending activity is set to improve. Also, easing regulatory capital requirements will help channel excess capital into loan growth, particularly within resilient commercial and consumer segments. Hence, Bank of America is likely to witness a decent demand for loans, which will support NII expansion. Over the medium term, the company expects loans and deposits to witness a CAGR of 5% and 4%, respectively.
Bank of America projects a 5-7% year-over-year increase in NII for 2026, with the first-quarter number likely to grow 7%. JPMorgan and Citigroup are expected to demonstrate resilience and steady growth in NII. For 2026, JPM expects NII to be almost $104.5 billion, up 9% from $95.9 billion in 2025. Further, C projects 2026 NII to rise 5-6% year-over-year.
Network Expansion & Digital Reach: Bank of America is highly focused on its financial centers as a core part of its growth strategy, combining digital and physical convenience for clients. The company operates 3,628 financial centers nationwide and is actively expanding its footprint, particularly in high-growth markets. Since 2019, it has opened 300 new financial centers and renovated more than 100.
BAC has entered 18 new markets since 2014 and plans to open financial centers in six additional markets through 2028. This expansion has already added 170 new financial centers and $18 billion in incremental deposits in those markets. The bank views the physical network as critical to driving core deposit and account growth, even in a heavily digital era, thanks to client preference for local, trusted in-person advice and expanded relationship opportunities.
The bank's strategic investment in new financial centers and expansion into new markets reflects a broader industry shift toward optimizing branch networks to deepen customer relationships and tap into new business opportunities. In this competitive environment, the ability to blend digital convenience with in-person expertise is expected to give Bank of America long-term leverage in the evolving banking landscape.
The company plans to continue strengthening its technology initiatives and spend heavily on these. These efforts help it attract and retain customers and boost cross-selling opportunities.
Fortress Balance Sheet & Solid Liquidity: Bank of America’s liquidity profile remains solid. As of Dec. 31, 2025, average global liquidity sources totaled $975 billion. The company’s investment-grade long-term credit ratings of A1, A- and AA- from Moody’s, S&P Global Ratings and Fitch Ratings, respectively, and a stable outlook facilitate easy access to the debt market.
BAC continues to reward shareholders handsomely. The company cleared the 2025 stress test conducted by the Fed and raised the dividend by 8% to 28 cents per share. In the past five years, it has raised dividends five times, with an annualized growth rate of 8.64%.
BAC’s Historical Dividend Trend
Image Source: Zacks Investment Research
JPMorgan and Citigroup cleared their stress tests and announced higher quarterly dividends. JPMorgan declared a quarterly dividend of $1.50 per share, representing a rise of 7% from the prior payout. Citigroup announced an increase in its quarterly dividend by 7% to 60 cents per share.
Additionally, Bank of America has announced a new share repurchase plan under which it is authorized to buy back $40 billion worth of shares. The company intends to buy back shares worth $4.5 billion every quarter in the near term.
Investment Banking (IB) Business: As global deal-making came to a grinding halt at the beginning of 2022, it weighed heavily on Bank of America’s IB business. Though the company’s total IB fees plunged in 2022 and 2023, the trend reversed thereafter. In 2024, the company’s IB fees soared 31.4% year over year. In 2025, IB fees increased 8.4% on a year-over-year basis. Despite the near-term geopolitical headwinds, the market for global mergers and acquisitions (M&As) has been improving, and the company will continue to witness solid growth in IB fees, driven by a healthy IB pipeline.
Additionally, Bank of America targets mid-single-digit CAGR in IB fees and a 50 to 100-bp market share gain over the medium term, building on its 136-bp gain as of the third quarter of 2025. Management plans to deepen integration between corporate and IB, expand middle-market coverage and pursue more large deals. Growth will be driven by AI-enabled insights, senior talent and holistic capital solutions, including private credit and alternative investments, while leveraging its global client reach across 87 jurisdictions.
Asset Quality: Bank of America’s asset quality has been deteriorating. While the company recorded negative provisions in 2021, a substantial jump in provisions occurred in the following years due to a worsening macroeconomic outlook. The metric surged 115.4% in 2022, 72.8% in 2023 and 32.5% in 2024. Net charge-offs (NCOs) grew 74.9% in 2023 and 58.8% in 2024.
Though both provisions and NCOs declined last year, asset quality is less likely to improve much in the near term. BAC remains vigilant about the effects of continuous high rates on its loan portfolio. The impact of trade policy and the ongoing U.S.-Iran conflict are likely to put pressure on prices, thus keeping inflation high in the near term.
Bank of America’s Earnings & Valuation Analysis
Over the past month, the Zacks Consensus Estimate for 2026 and 2027 earnings has been revised upward to $4.32 and $4.95, respectively, indicating growth of 13.4% and 14.5%.
Bank of America Earnings Estimates
Image Source: Zacks Investment Research
Bank of America stock is currently trading at a 12-month trailing price-to-tangible book (P/TB) of 1.74X, which is below the industry’s 2.92X. This shows the stock is trading at a discount.
P/TB Ratio (TTM)
Image Source: Zacks Investment Research
BAC stock is inexpensive compared with JPMorgan, which has a P/TB of 2.86X. On the other hand, it is trading at a premium compared with Citigroup’s P/TB of 1.17X.
How to Play Bank of America Stock Now
While Fed cuts can hurt BAC’s NII in the near term, repricing of fixed-rate assets, improving deposit costs and rising loan/deposit balances should help offset headwinds, with management targeting 5-7% NII growth in 2026. With a potential pickup in lending as rates ease and capital rules relax, the fundamental backdrop remains constructive.
BAC also has multiple levers that can compound returns. Its expanding physical network, paired with deep digital engagement, supports core deposit growth and cross-sell, while the IB cycle is recovering and management is targeting share gains. With a fortress liquidity profile, an 8% dividend hike and a $40B buyback plan, shareholders are paid to hold, especially with the stock still trading at a discount to the industry.
However, investors should avoid buying BAC stock right now as more clarity is necessary on the macro and geopolitical fronts to understand the direction of interest rates and economic growth in 2026. However, those who have already invested can retain it for robust long-term returns.
At present, Bank of America carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. Little-known AI firms tackling the world's biggest problems may be more lucrative in the coming months and years.
See
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.