From Yahoo Finance: 2025-04-23 12:09:00

In a recent article, we highlighted the 12 best stocks under $100 to buy according to hedge funds, with Citigroup Inc. (NYSE:C) being one of them. Chris Davis of Davis Advisors discussed selectivity in the market, emphasizing the importance of value and growth in a diversified portfolio beyond just tech.

Davis predicts a shift towards active management and selectivity in the market, citing the concentration and high valuations of indexes. He believes this environment favors stock pickers who can identify resilient businesses at reasonable valuations, leading to potential outperformance.

The investment environment is undergoing major transitions, including a shift from a prolonged era of free money to normal interest rates, deglobalization, and the rise of AI. These changes are set against a backdrop of high valuations, concentrated growth expectations, and market complacency.

Citigroup Inc. (NYSE:C) ranks 7th on the list of best stocks under $100 according to hedge funds. The company’s Wealth segment saw a 24% revenue surge in Q1 2025, driven by fee revenue and strong net new investment asset flows. With positive operating leverage and expense management, Citigroup is positioned for growth.

Diamond Hill Capital Long-Short Fund highlighted Citigroup’s ongoing restructuring efforts and positive outlook. While Citigroup shows growth potential, there are promising AI stocks that may deliver high returns within a shorter timeframe. Consider exploring AI stocks for potential investment opportunities.

Read more: Is Citigroup Inc. (NYSE:C) the Best Stock Under $100 to Buy According to Hedge Funds?