The market is near record highs, but there are still opportunities to find value, two analysts said Tuesday.
The Dow Jones industrial average closed at a record for the second day in a row Tuesday, while the S&P 500 hit a new intraday record but failed to close higher. The Nasdaq came within 10 points of its closing high but also fell into negative territory for the close.
Those hunting for value in the financial sector should look at Citigroup, a "very misunderstood investment story," said Charles DyReyes, senior research analyst at Brandywine Global.
The stock is trading well below tangible book value, which is extremely rare in the financial space right now, and is trading at 10 times earnings, he added.
He thinks Citi's earnings are depressed because of the company's legacy costs and holdings.
"We think in a more normal environment, with lending growth picking up and with higher interest rates, Citigroup's earnings could approach $7 per share. You could see Citigroup trading well over $70," DyReyes said in an interview with CNBC's "Closing Bell."