*Citigroup's stock has significantly underperformed the broader market so far in 2020.
*The bank recently reported Q1 2020 results and, as expected, earnings were under pressure due to the poor economic outlook caused by COVID-19.
*In a broader context, many experts believe that we are already in a recession, which will likely have a negative impact on the bank's stock in the near term.
*I'm long Citigroup, and I have no plans to reduce my overweight position in the near future.
Citigroup's ($C) stock has significantly underperformed the broader market so far in 2020.
However, it should be noted that Citigroup shareholders are not the only ones that have had to deal with the pain of a falling stock price. The COVID-19 related concerns, in addition to the deteriorating interest rate environment, have wreaked serious havoc in the financial sector. I believe that the stock market (and C shares) will face further downward pressure in the near term as more companies report on the financial impact of the COVID-19 spread but, in my opinion, Citigroup is well-positioned to weather the storm. Additionally, I believe that the bank's stock at current levels will turn out to be a great long-term buying opportunity.
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