Today, I am recommending buying shares in Citigroup (C).

We have done well by avoiding the shares belonging to big banks in 2020, but there is simply too much bad news priced into Citigroup. Currently, C trades at 57% of tangible book value of $72 a share and offers a dividend yield of 4.9%.

Even with large credit charges related to COVID-19 this year, the company should earn close to $4 a share and has good potential to stage a recovery next year. I believe that any election-related risk is priced into the stock.

In fact, the company could benefit from a big stimulus program from a Democratic-controlled federal government, which could potentially raise inflation and interest rates. All of this would be very bullish for C.

Buy Citigroup under $43.50. My target is $50.

If you are an Inner Circle subscriber who is following the Model Portfolio, buy C with a 5% stake in the Value Sector.