Brown Picks Citigroup as Top Bank Ahead of Q2

Josh Brown, a wealth manager, named Citigroup a top bank stock to own ahead of its Q2 earnings, citing CEO Jane Fraser’s operational restructuring and the bank’s $30 billion share buyback.

Fraser has exited more than a dozen overseas retail markets and pared back management layers to concentrate on higher-margin corporate and institutional services, including Citigroup’s global treasury and trade solutions franchise.

Citigroup shares have recovered more than 30% from their year-to-date low. At its May Investor Day the bank announced a $30 billion repurchase program intended to reduce share count and lift earnings per share. The stock offers a 1.72% dividend yield.

Analysts expect Citi to report about $23.4 billion in second-quarter revenue and roughly $2.72 of earnings per share, about 39% higher than a year earlier. Options expiring July 17 show a put-to-call ratio near 0.42; the most active call strike around $145 implies about a 4.2% upside from current levels.

Brown called Citi “one of the top bank stocks” and described Fraser’s strategy as “shrinking to grow,” highlighting the global treasury and trade business as a key strength.

Investors will watch the quarterly results and management commentary for evidence that the restructuring is translating into sustained revenue and profit gains, and they will monitor buyback execution and any updated guidance on capital return.