10 Best European Bank Stocks to Buy According to Analysts

1. BNP Paribas SA (NYSE:BNPQY)

Number of Hedge Fund Holders: N/A

Stock Upside Potential as of January 24: 23.71%

BNP Paribas SA (NYSE:BNPQY) is a financial services company that provides financial products and services. It offers capital markets, securities, investment banking, financing, risk management, cash management, and financial advisory services. It is one of the best European bank stocks to buy, according to analysts, going by impressive growth rates in its investment banking unit.

Investment banking has emerged as a soft spot, helping offset losses in the lending business that headwinds have plagued in recent months. For instance, revenues in the equities trading segment rose by 13% in Q3 of 2024 as fixed income gained 12%, which was helped by BNP Paribas SA (NYSE:BNPQY) investing more funds in equities trading.

In addition, BNP Paribas has sought to strengthen its growth prospects by pursuing growth through acquisitions. Last year, it acquired AXA SA’s asset management unit and created one of Europe’s largest money managers as it continues to strengthen its investment banking segment. Wealth management is another segment that continues to drive growth following the acquisition of HSBC’s private banking operations in Germany. Income from asset management was up 7.9% in the third quarter. Amid the underlying growth, BNP Paribas SA (NYSE:BNPQY) expects its profit to rise to more than €11.2 billion.

While we acknowledge the potential of BNP Paribas SA (NYSE:BNPQY) as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for a deeply undervalued AI stock that is more promising than BNPQY but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.

Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.