Citigroup Stock Is the Cheapest of the Big Banks. It’s Ready to Take Off.

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Bank stocks have gotten hit as concerns about the U.S. economy have grown. They’re starting to look like bargains, and none more so than Citigroup.

The SPDR S&P Bank exchange-traded fund (ticker: KBE) has dropped 20.4% this year, only slightly less than the S&P 500’s 22.9% decline. The trading and capital-markets activity that helped some of the biggest banks notch record profits during the pandemic is drying up, while investors fret the banks will have to start building up depleted reserves.