Financial Stocks: Undervalued or Overvalued?

After being sold and sworn off during the financial crisis, stocks in the financial sector have bounced back and seen some huge gains. Bank of America shares have more than doubled over the past 15 months, and Citigroup has been hot on the recovery trail. All of these gains may leave investors wondering if the sector is now overvalued.

In this video, Motley Fool banking analysts David Hanson and Matt Koppenheffer debate whether or not this sector is still undervalued, and why comparisons to years past may be a (small-f) fool's errand.

Citigroup's stock still looks tantalizingly cheap. Yet the bank's balance sheet is in need of more repair, and there's a considerable amount of uncertainty after a shocking management shakeup. Should investors be treading carefully, or jumping on an opportunity to buy? To help figure out whether Citigroup deserves a spot on your watchlist, I invite you to read our premium research report on the bank today. We'll fill you in on both reasons to buy and reasons to sell Citigroup, and what areas that Citigroup investors need to watch going forward. Click here now for instant access to our best expert's take on Citigroup.

The article Financial Stocks: Undervalued or Overvalued? originally appeared on Fool.com.

David Hanson has no position in any stocks mentioned. Matt Koppenheffer owns shares of Bank of America. The Motley Fool owns shares of Bank of America and Citigroup. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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