3 Reasons to Sell CFG and 1 Stock to Buy Instead

3 Reasons to Sell CFG and 1 Stock to Buy Instead

Adam Hejl

Thu, February 26, 2026 at 7:48 PM GMT+9 3 min read

In this article:

CFG

+1.59%

CFG-PE

+0.44%

^GSPC

+0.81%

Citizens Financial Group’s 24% return over the past six months has outpaced the S&P 500 by 17.5%, and its stock price has climbed to $63.62 per share. This performance may have investors wondering how to approach the situation.

Is now the time to buy Citizens Financial Group, or should you be careful about including it in your portfolio? Dive into our full research report to see our analyst team’s opinion, it’s free.

Why Do We Think Citizens Financial Group Will Underperform?

We’re happy investors have made money, but we’re swiping left on Citizens Financial Group for now. Here are three reasons why CFG doesn’t excite us and a stock we’d rather own.

1. Long-Term Revenue Growth Disappoints

From lending activities to service fees, most banks build their revenue model around two income sources. Interest rate spreads between loans and deposits create the first stream, with the second coming from charges on everything from basic bank accounts to complex investment banking transactions.

Unfortunately, Citizens Financial Group’s 3.6% annualized revenue growth over the last five years was sluggish. This was below our standard for the banking sector.

Citizens Financial Group Quarterly Revenue

2. Net Interest Income Points to Soft Demand

Net interest income commands greater market attention due to its reliability and consistency, whereas one-time fees are often seen as lower-quality revenue that lacks the same dependable characteristics.

Citizens Financial Group’s net interest income has grown at a 5% annualized rate over the last five years, much worse than the broader banking industry.

Citizens Financial Group Trailing 12-Month Net Interest Income

3. EPS Barely Growing

We track the long-term change in earnings per share (EPS) because it highlights whether a company’s growth is profitable.

Citizens Financial Group’s weak 3.5% annual EPS growth over the last five years aligns with its revenue performance. On the bright side, this tells us its incremental sales were profitable.

Citizens Financial Group Trailing 12-Month EPS (Non-GAAP)

Final Judgment

We cheer for all companies supporting the economy, but in the case of Citizens Financial Group, we’ll be cheering from the sidelines. With its shares beating the market recently, the stock trades at 1× forward P/B (or $63.62 per share). This multiple tells us a lot of good news is priced in - we think there are better stocks to buy right now. Let us point you toward the most dominant software business in the world.

Stocks We Like More Than Citizens Financial Group

If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.

Story Continues  

Don’t wait for the next volatility shock. Check out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).

Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.

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