12 Best Performing Cheap Stocks in 2024

08. Banco Macro S.A. (NYSE:BMA)

Number of Hedge Fund Holders: 13

Year to date Share Price Gain: 165.30%

Forward Price to Earnings (P/E) Ratio: 6.32

Banco Macro S.A. (NYSE:BMA) is a leading bank in Argentina, offering a wide range of financial services to both retail and corporate clients. The company provides an array of banking products, including savings and checking accounts, time deposits, loans, insurance, credit cards, and various digital banking services. With its comprehensive offerings, Banco Macro S.A. (NYSE:BMA) serves as a key player in the Argentine banking sector and is well-positioned to capture further market share.

Banco Macro S.A. (NYSE:BMA) has demonstrated resilience in navigating Argentina’s complex economic landscape, adapting to hyperinflationary conditions by adhering to Hyperinflation Accounting (IFRS IAS 29). Despite economic challenges, the bank reported a net income of ARS93.1 billion for the first half of 2024, reflecting its ability to maintain profitability amidst volatile conditions. The bank’s net operating income before general, administrative, and personnel expenses reached ARS1.59 trillion, an impressive 41% increase compared to the same period in 2023.

One of the key strengths of Banco Macro S.A. (NYSE:BMA) lies in its operational efficiency. In the second quarter of 2024, the bank’s efficiency ratio stood at 22.2%, which, although higher than previous quarters, still indicates strong cost management capabilities. The company’s robust capital position, with a capital adequacy ratio of 35.7% and Tier 1 ratio of 34%, showcases its financial stability and ability to withstand economic headwinds.

Furthermore, Banco Macro S.A. (NYSE:BMA) loan portfolio showed healthy growth in the second quarter, with total financing reaching ARS3.47 trillion, representing a 17% increase quarter-on-quarter. The bank’s asset quality remains solid, with a non-performing loan ratio of just 1.23% and a coverage ratio of 181.4%, indicating that the bank has adequately provisioned for potential credit risks.

With its strong fundamentals, growth in private sector loans, and a substantial market share of 9.1% in private sector loans, Banco Macro S.A. (NYSE:BMA) is poised to capitalize on opportunities within the Argentine financial market, making it an attractive investment option among the best-performing cheap stocks in 2024.