It's nothing new to investing veteran investors, and new investors are quickly becoming accustomed to the phenomenon as well: Banking stock valuations are reliably lower than those of most other stocks. And this valuation disparity has been even wider than usual in recent months, with rising interest rates putting major downward pressure on dividend-paying banking names.

In a handful of cases, though, investors overshot their valuation targets. Citigroup (NYSE: C) is one of these dramatically undervalued stocks, priced only a little over 7 times its trailing per-share earnings thanks to a 40% pullback from its mid-2021 high.

You may want to use the market's misstep as an entry opportunity before the mistake is caught and corrected.

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Source Fool.com