3 Reasons CFG is Risky and 1 Stock to Buy Instead

Citizens Financial Group’s 20.4% return over the past six months has outpaced the S&P 500 by 8.5%, and its stock price has climbed to $50.08 per share. This run-up might have investors contemplating their next move.

Is there a buying opportunity in Citizens Financial Group, or does it present a risk to your portfolio? See what our analysts have to say in our full research report, it’s free for active Edge members.

Why Is Citizens Financial Group Not Exciting?

We’re glad investors have benefited from the price increase, but we don't have much confidence in Citizens Financial Group. Here are three reasons we avoid CFG 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.

Over the last five years, Citizens Financial Group grew its revenue at a mediocre 3.4% compounded annual growth rate. This was below our standard for the banking sector.

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 4.5% annualized rate over the last five years, worse than the broader banking industry.

Final Judgment

Citizens Financial Group’s business quality ultimately falls short of our standards. With its shares outperforming the market lately, the stock trades at 0.9× forward P/B (or $50.08 per share). While this valuation is reasonable, we don’t really see a big opportunity at the moment. We're pretty confident there are more exciting stocks to buy at the moment. Let us point you toward a top digital advertising platform riding the creator economy.

Stocks We Would Buy Instead of Citizens Financial Group

The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in our Top 9 Market-Beating Stocks. 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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