12 Best Performing Cheap Stocks in 2024

05. Grupo Financiero Galicia S.A. (NASDAQ:GGAL)

Number of Hedge Fund Holders: 15

Year to date Share Price Gain: 171.50%

Forward Price to Earnings (P/E) Ratio: 6.03

Grupo Financiero Galicia S.A. (NASDAQ:GGAL) is a financial services holding company that operates across multiple segments, including banking, consumer finance, and insurance. It provides a diverse array of financial products such as personal loans, credit cards, mortgage loans, and online banking services to individuals and businesses throughout Argentina. Given its robust performance in recent quarters and strong presence in the Argentine financial sector, Grupo Financiero Galicia S.A. (NASDAQ:GGAL) stands out as a key candidate for inclusion in our list of 12 best performing cheap stocks in 2024.

During the second quarter of 2024, Grupo Financiero Galicia S.A. (NASDAQ:GGAL) reported impressive financial results, with net income reaching Ps.295,577 million, a significant 54% increase from the same quarter in 2023. This growth translated into an annualized Return on Equity (ROE) of 36.9% and a Return on Assets (ROA) of 8.95%, highlighting the company’s efficiency and strong profitability in generating returns for its shareholders. The firm also saw an uptick in operating results, which increased by 34% year-over-year, driven by a higher net operating income.

Despite macroeconomic challenges such as inflation, which led to a Ps.375,329 million loss in its net monetary position, Grupo Financiero Galicia S.A. (NASDAQ:GGAL) managed to post a higher net operating income of Ps.1,258,296 million, reflecting a 24% increase from the previous year. This surge was primarily fueled by a rise in net interest income by Ps.318,263 million, or 46%, and a notable increase in net results from financial instruments by Ps.56,235 million, or 72%.

Although the company faced a decrease in average interest-earning assets due to lower volumes of government securities and peso-denominated loans, it managed to offset this decline through a stronger performance in other interest-earning assets, which grew by 92%. Additionally, interest expenses decreased by a substantial 61%, reflecting better management of liabilities and a reduction in time deposits.

The company’s market share of total loans to the private sector grew to 11.89%, showcasing its dominance in the Argentine market. With a well-diversified portfolio, robust profitability metrics, and resilience against macroeconomic headwinds, Grupo Financiero Galicia S.A. (NASDAQ:GGAL) is well-positioned to deliver strong performance, making it an attractive pick among cheap stocks in 2024.