10 Most Undervalued Stocks to Buy for Under $10

4. Itau Unibanco (NYSE:ITUB)  

Number of Hedge Fund Investors: 25  

Forward P/E Ratio as of October 8: 8.11  

Stock Price as of October 8: $6.57  

Itau Unibanco (NYSE:ITUB) is one of the largest financial institutions in Latin America and the largest private-sector bank in Brazil. The bank offers a comprehensive range of financial services, including retail and investment banking, as well as insurance.

In Q2, Itau Unibanco (NYSE:ITUB) reported a net income of $1.85 billion, marking a 15.2% year-over-year increase. This robust growth has outpaced its peers, solidifying the bank’s position as one of the most profitable institutions in Brazil. Over the past five years, the bank has consistently grown its net income at a compound annual growth rate (CAGR) of 7.28%.

A key driver of Itau Unibanco’s (NYSE:ITUB) strong financial performance is its high-quality loan portfolio, which maintains a low non-performing loan (NPL) ratio of 2.7%. The portfolio is well-diversified across corporate, retail, and small-to-medium-sized enterprise (SME) segments.

In addition to its financial strength, Itau Unibanco (NYSE:ITUB) benefits from a solid market position in Brazil, with a large customer base and an extensive range of financial products and services. Its strong brand reputation and reliability have earned it widespread recognition as one of Brazil’s most trusted banks.

Itau Unibanco (NYSE:ITUB) presents a solid investment opportunity for those seeking a profitable and stable financial institution. The stock trades at a forward P/E ratio of 8.11 representing a 32.27% discount to the sector median of 11.98. Analysts forecast a 9.27% earnings increase this year.