Citigroup Inc. (C)
After hours:
- Yahoo Finance Video
This is Goldman Sachs' stock picking strategy for 'conviction list'
Goldman Sachs (GS) has released its conviction list focusing on three key areas: artificial intelligence, consumer trends, and sustainability. Goldman Sachs Director of Americas Equity Research Steve Kron joins Catalysts to discuss the details. Kron explains that the purpose of this list is to help investors identify stocks where Goldman Sachs has "the highest level of conviction" for outperformance. Since the list's introduction last June, Kron emphasizes that "the feedback has been fantastic." Pinterest (PINS) was recently added to the list, while Amazon (AMZN) and Guidewire (GWRE) were removed. According to Kron, Goldman analyst Eric Sheridan believes Pinterest has the ability to "monetize their user base," with margin expansion potential over the next five years and earnings projected to be 6% above estimates in 2025. The stock also presents a favorable 3-to-1 upside-to-downside risk ratio. As for Amazon and Guidewire, they were removed to "keep the list fresh," though Kron notes they remain solid stock picks. Regarding the selection process, Kron tells Yahoo Finance, "We spend a lot of time on investment process, and we spend a lot of time with our analysts talking about stock recommendations. So these are sourced from them," with names like Nvidia (NVDA) and Citigroup (C) both making the list. Watch the video above to hear Kron's explanation on how the firm determines the themes of the list. For more expert insight and the latest market action, click here to watch this full episode of Catalysts. This post was written by Angel Smith
- Barrons.com
Citi’s Turnaround Plan Is Stained by Warren’s Call for Growth Limits
The Massachusetts Democrat called on a top government regulator to restrict the growth of the nation’s fourth-largest bank.
- Reuters
US Senator Warren asks regulator to impose growth curbs on Citi
A prominent Democratic U.S. senator called on a top regulator on Wednesday to impose growth restrictions on Citigroup as the Wall Street bank struggles to fix ongoing regulatory problems. In a letter to Acting Comptroller of the Currency Michael Hsu, Senator Elizabeth Warren said that Citi's years-long struggle to fix data, controls and other management problems show it has become "too big to manage" and should be curtailed. A prominent bank critic who has previously taken aim at Wells Fargo, JPMorgan and others, Warren cannot force Hsu to take action but her letter can still put pressure on him to be tough on Citi, and draws more attention to the bank's problems.
