10 Worst Affordable Stocks Under $10

1. Banco Santander, S.A. (NYSE:SAN)

Share Price: $5.08

Forward P/E Ratio: 6.22 

Earnings Growth This Year: 14.50% 

Number of Hedge Fund Holders: 9

Banco Santander, S.A. (NYSE:SAN) is an international bank based in Spain. It primarily operates as a retail and commercial bank, with operations in Europe, the United Kingdom, the United States, and Latin America.

Although the bank ranks as one of the worst affordable stocks under $10, its recent financial report says otherwise. The financial company reported significant profits during the first half of fiscal 2024. The total attributable profits for the first half amounted to approximately $6.81 billion, out of which $3.2 billion came in from the second quarter only.

Management has been focused on improving automation and making its banking services simpler and more accessible. This strategy has been one of the main factors boosting profitability. As a result of automation Banco Santander, S.A. (NYSE:SAN) was able to achieve an efficiency ratio of 41.6%, the best in 15 years.

Talking about other financial achievements, the bank significantly improved its net interest income during the first half of the year. The NII improved 12% year-over-year to approximately $26.202 million. High net interest income topped with net income fee resulted in overall revenue growing 9% year-over-year. Management expects the growth trend to continue for the rest of the year and has upgraded its full-year outlook to high single-digit growth.

Banco Santander, S.A. (NYSE:SAN) is trading at a 48% discount to its sector with earnings expected to grow by 14.5% during the year. Making SAN a cheap stock to buy.

While we acknowledge the potential of Banco Santander, S.A. (NYSE:SAN) to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for a promising AI stock that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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