After this week’s key earnings reports, and despite a major market sell-off, Citigroup Inc. (NYSE: C) and Wells Fargo & Co. (NYSE: WFC) have both received key analyst upgrades by Argus on Thursday morning. Despite the market being off again, these stocks were mixed in Thursday morning trading.

Argus upgraded Citigroup to a Hold rating from Sell in the wake of third-quarter results. The firm considers shares of Citigroup to be at “bargain-basement” prices that discount it against its peers. The company has weathered the financial crisis, despite not operating at optimum profitability levels. Citigroup’s presence in emerging consumer banking markets is expected to drive long-term growth. In the view of Argus, the management is making progress improving the loan portfolio and reducing expenses.

Argus also pointed out that Citigroup has outperformed the market over the past quarter with an increase of 0.4%, versus the S&P 500 drop of 6%. However over the past year shares have underperformed, increasing 1.2% versus a 9.1% gain in the S&P 500.

Citigroup released its earnings of $1.15 in earnings per share and $19.98 billion in revenue for the third quarter in 2014 both earnings above Thomson Reuters consensus estimates of $1.12 in earnings per share and $19.06 billion in revenue. Shares of Citigroup have a consensus analyst price target of $59.21 and a 52-week trading range of $45.18 to $55.28. It has a market cap of $150 billion.

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Argus upgraded Wells Fargo with a much more favorable view, up to a Buy rating from Hold, with a price target of $54. Wells Fargo has not escaped the broad-market sell-off, and its shares recently hit that 10% or so correction. Argus is maintaining its 2014 earnings estimates but it is boosting its 2015 earnings. The increase in 2015 is assuming a single-digit sales growth and modest margin improvement, supplemented by share buybacks.

Wells Fargo might seem expensive compared to its peers, but relative to its historical standards it looks cheaper and more attractive, given the company’s high levels of profitability and returns, according to the Argus upgrade.

Argus says Wells Fargo continues to deliver the best-in class returns on capital with a clean balance sheet. From a technical standpoint, shares have made a positive pattern of higher highs and higher lows. Shares have performed in line with the market over the past quarter, keeping pace with roughly a 5% decline. However, Wells Fargo has outperformed the market over the past year with a gain of 16%, versus a 9% gain in the S&P 500.

Wells Fargo reported its earnings for the third quarter as $1.02 per share on $21.2 billion in revenue, compared to consensus estimates of $1.02 in earnings per share and revenue of $21.1 billion. Wells Fargo stock has a consensus analyst price target of $54.76 and a 52-week trading range of $41.71 to $53.80. The bank has a market cap of almost $250 billion.

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