12 Best Performing Cheap Stocks in 2024

10. Banco BBVA Argentina S.A. (NYSE:BBAR)

Number of Hedge Fund Holders: 9

Year to date Share Price Gain: 142.78%

Forward Price to Earnings (P/E) Ratio: 10.48

Banco BBVA Argentina S.A. (NYSE:BBAR) is a leading financial institution providing a diverse range of banking products and services to individuals and companies across Argentina. As a significant player in the Argentinian financial sector, the company offers comprehensive solutions, including checking and savings accounts, credit cards, mortgages, and various financing options.

Banco BBVA Argentina S.A. (NYSE:BBAR) second quarter of 2024 financial results demonstrate strong profitability despite challenging macroeconomic conditions. The bank posted net income of ARS112.9 billion, reflecting an impressive 178.8% quarter-over-quarter growth. This strong bottom-line performance translated into a return on equity (ROE) of 19.5% and a return on assets (ROA) of 4.7%, highlighting the company’s efficiency in generating returns for shareholders.

The bank’s financial stability is further underscored by its solid capital position, with a capital ratio of 25.3% and capital excess over regulatory requirements of 210.3%. While the capital ratio fell slightly from the previous quarter due to a 16.4% increase in risk-weighted assets, Banco BBVA Argentina S.A. (NYSE:BBAR) overall solvency remains robust.

One of the key highlights from the earnings report is the company’s continued digital expansion. As of June 2024, 81% of new customer acquisitions were made through digital channels, up from 76% a year ago. This strategic shift has not only enhanced customer engagement but also boosted the bank’s competitive position within the industry. Digital sales represented 74% of the bank’s total sales, illustrating the effectiveness of its digital strategy.

On the lending front, private sector loans totaled ARS3.9 trillion, marking a 23.1% growth in real terms during the quarter. Notably, the retail portfolio grew by 19%, while the commercial portfolio expanded by 26.6%. The bank’s asset quality ratio remains healthy at 1.18%, reflecting prudent risk management practices.

Despite the backdrop of high inflation in Argentina, Banco BBVA Argentina S.A. (NYSE:BBAR) ability to achieve strong financial results and expand its customer base through digital means positions it as one of the best-performing and most resilient cheap stocks in 2024.