Citigroup (C) stock is up 38% for the year and has more than doubled over the last two years, outperforming both the broader market and the financial sector during this period. The recent outperformance is a welcome relief for investors, as Citi has been a long-term underperformer, with its 10-year returns trailing those of its peers by a significant margin.
Moreover, the stock trades at less than a fifth of its 2007 highs. Citigroup has had its own share of issues, which is reflected in its long-term price action. However, the company has been trying to address these issues as part of the transformation under CEO Jane Fraser. These measures have paid off well and are reflected in Citi’s earnings and return metrics.
