Should I Buy Citizens Financial Group (CFG)? Finance YouTuber Analysis

The YouTuber sees Citizens Financial Group as a buy, similar to Lincoln National, due to its undervaluation after interest rate increases. The bank has a diversified deposit mix and a low percentage of uninsured deposits compared to peers. Anticipated interest rate cuts in the coming year are expected to boost the stock and potentially lead to dividend increases.

“I think investors are going to be just as surprised over the next two years though when those rates start coming down and really lifts some of these same stocks”

The analyst recommends Citizens Financial Group due to its sound banking operations and rebound potential, despite a recent 32% drop. The bank reported strong net interest income growth and a high return on tangible common equity. Its diversified deposit base suggests it may be less vulnerable than other regional banks.

“I've been picking through the wreckage of the bank stocks lately to find the deals and even though citizens is down 32 percent from its February Peak it's a sound bank with a rebound potential.”

The analyst likes Citizen Financial Group for its 'smaller community bank feel' despite its large size, and its balanced exposure to consumer and commercial banking. He notes that while earnings are down this year, revenue and income are expected to rebound 20% next year, and the stock pays a 4.3% dividend. The stock is down 37% from its peak, offering significant upside to the average analyst target.

“I still like citizens on that smaller community bank feel even though earnings are down this year revenue and income is expected back up 20% next year and shares pay a solid 4.3% dividend while we wait for that rebound.”