Citigroup gained 9% in August
Shares of Citigroup (C) returned 9% during August and outperformed its peers (XLF) such as JPMorgan Chase (JPM), Goldman Sachs (GS), and Wells Fargo by a wide margin. However, the stock has generated losses of 7.4% year-to-date.
Last month, Bernstein reiterated its “outperform” rating on Citigroup, but Vetr upgraded the stock to “hold” from its previous “sell” rating. Capital Advisors CEO Keith Goddard shared a bullish outlook on the stock. He thinks the Citigroup trades at favorable valuations and provides a “lucrative” opportunity for long-term investors. He thinks that Citigroup would provide double-digit returns in the next two years.
However, Citigroup continued to experience hurdles in its Costco portfolio with 11 million cardholders. Citigroup acquired the Costco credit card from American Express (AXP) earlier in the year. Citigroup’s roll out of the Costco Visa (V) card has been facing criticism since June when the bank took it over from American Express. Costco customers have been complaining about the new credit card from Citigroup. The top complaints included long wait times to get help and trouble activating the accounts. The problem was so bad that Citigroup’ chief executive, Mike Corbat, said the company had to deploy a lot of resources to reduce the complaints.