10 Oversold Bank Stocks To Buy Right Now

2. Shinhan Financial Group Co., Ltd. (NYSE:SHG)

6-Month Performance: -11.41%

Analysts Upside Potential: 48.04%

Shinhan Financial Group Co., Ltd. (NYSE:SHG) is one of the largest financial conglomerates in South Korea. The group engages in providing various financial services including banking credit cards, investment, and insurance services. The group has faced some challenges recently, particularly within the securities division. During the fiscal third quarter of 2024, Shinhan Financial Group Co., Ltd. (NYSE:SHG) reported a loss of KRW 135.7 billion, due to the issues of trading operations at Shinhan Securities. Management has assured that they are working closely in diagnosing the root cause of the losses to improve oversight.

On the bright side, the group has been focused on improving qualitative growth through return on assets and return on equity. Polaris Global Equity Strategy in their Q3 2024 investor letter mentioned that Shinhan Financial Group Co., Ltd. (NYSE:SHG) was one of the top contributors and also noted that management has committed to return 50% of earnings to investors through dividends and buybacks by 2027. Their short-term goal as identified during the earnings call for the fiscal third quarter is to reach a return on equity of 13% by 2025. It is one of the oversold bank stocks to buy right now.

Polaris Global Equity Strategy stated the following regarding Shinhan Financial Group Co., Ltd. (NYSE:SHG) in its Q3 2024 investor letter:

“On the backdrop of interest rate cuts, financials shined on expectations for loan demand and cheaper cost of capital; in fact, all sector holdings were in absolute positive territory. Shinhan Financial Group Co., Ltd. (NYSE:SHG) was the top contributor, with a second-quarter earnings beat on better non-interest income with credit costs under control. An enhanced shareholder return policy was a pleasant upside surprise, as Shinhan committed to returning 50% of earnings to investors through dividends and share buybacks by 2027.”