10 Best Hot Stocks To Buy Right Now

3. Grupo Financiero Galicia S.A. (NASDAQ:GGAL)

Number of Hedge Fund Holders: 15

Year-to-Date Share Price Gains: 150%

Average Price Target Upside: 69.23%

Grupo Financiero Galicia S.A. (NASDAQ:GGAL) is a prominent financial services holding company in Argentina. It is also the largest privately owned domestic bank in the country. The company has a diverse portfolio of subsidiaries, including Banco Galicia, Naranja X, Galicia Seguros, and Galicia Asset Management. It provides a wide range of financial products and services, which include savings accounts, credit options, investment solutions, and insurance offerings.

In April, Grupo Financiero Galicia (NASDAQ:GGAL), along with its subsidiary Banco Galicia, made a deal with HSBC Latin America B.V. to buy its ownership in three companies: HSBC Argentina Holdings S.A., HSBC Participaciones (Argentina) S.A., and HSBC Bank Argentina S.A.

In this deal, Banco Galicia will purchase 57.89% of the shares, while Grupo Financiero Galicia S.A. will buy the remaining 42.11%. As a result, they will own 99.99383% of the shares and voting rights of HSBC Bank Argentina S.A. They will also gain complete control over the other HSBC companies mentioned.

The total cost of this purchase is $475 million. Banco Galicia will pay about $275 million in cash, while Grupo Financiero Galicia S.A. will cover about $200 million by issuing Class B shares, which will be represented as American Depositary Receipts.

In September, Grupo Financiero Galicia (NASDAQ:GGAL) received approval from the Argentine Central Bank for its acquisition of HSBC Argentina Holdings S.A. and its related entities. The deal is expected to have a major impact not just for the company but the Argentine banking industry.

According to the Insider Monkey database, 15 hedge funds had stakes worth $147.459 million in the company, as of Q2. Moreover, the company ranks at 3 on our list of best hot stocks to buy with an average price target upside of 69.23%, as of October 1.