In this article, we will look at the 4 best European bank stocks to buy now. If you want to explore similar stocks, you can also read 9 Best European Bank Stocks to Buy Now.
4. Banco Santander (NYSE:SAN)
Number of Hedge Fund Holders: 15
Banco Santander (NYSE:SAN) is a Spanish bank that provides various retail and commercial banking products and services to individuals, small and medium-sized enterprises, and large companies worldwide. On June 28, Morgan Stanley analyst Alvaro Serrano raised his price target on Banco Santander (NYSE:SAN) to EUR 4.30 from EUR 4.20 and maintained an Equal Weight rating on the shares.
As of July 5, Banco Santander (NYSE:SAN) has a trailing-twelve-month PE ratio of 5.17 and a forward dividend yield of 3.94%. Banco Santander (NYSE:SAN) is therefore one of the best undervalued and dividend-paying European bank stocks to invest in right now.
At the end of Q1 2022, 15 hedge funds held stakes in Banco Santander (NYSE:SAN) worth $592.72 million. This is compared to 13 hedge funds in Q4 2021 with stakes worth $508.48 million. The hedge fund sentiment for the stock is positive.
As of March 31, Ariel Investments owns over 1 million shares of Banco Santander (NYSE:SAN) which amount to a stake of $23.24 million. Arial Investments is the largest shareholder in the Spanish bank.
3. Deutsche Bank AG (NYSE:DB)
Number of Hedge Fund Holders: 15
Deutsche Bank AG (NYSE:DB) provides investment, financial, and related products and services to private individuals, corporate entities, and institutional clients worldwide. Analysts are bullish on European banks right now. On July 5, JPMorgan analyst Kian Abouhossein slashed his price target on Deutsche Bank AG (NYSE:DB) to EUR 13 from EUR 15 but reiterated a buy-side Overweight rating on the shares.
Deutsche Bank AG (NYSE:DB) as the bank stock appears to be a bargain at current levels and is also offering dividends. As of July 5, Deutsche Bank AG (NYSE:DB) has a forward dividend yield of 2.53% and a trailing-twelve-month PE ratio of 7.72.
Hedge funds are initiating positions in Deutsche Bank AG (NYSE:DB). Insider Monkey found 15 hedge funds bullish on Deutsche Bank AG (NYSE:DB) at the close of Q1 2022. The total stakes of these funds came in at $1.42 billion, down from $1.78 billion a quarter ago with 14 positions.
As of March 31, Hudson Executive Capital is the most bullish hedge fund on Deutsche Bank AG (NYSE:DB), owning over 67.38 million shares of the company. The fund’s stakes in the bank are valued at $858.18 million and the investment covers 68.62% of Hudson Executive Capital’s 13F portfolio.
2. Barclays PLC (NYSE:BCS)
Number of Hedge Fund Holders: 16
Barclays PLC (NYSE:BCS) provides various financial products and services in the United Kingdom, Europe, the Americas, Africa, the Middle East, and Asia. The company operates through two segments: Barclays UK and Barclays International. As of May 24, Credit Suisse analyst Omar Keenan has a 245 GBP price target and a buy-side Outperform rating on the London-based bank.
As of July 5, Barclays PLC (NYSE:BCS) has a trailing-twelve-month PE ratio of 4.30 and a forward yield of 4.32%, two salient features that justified its inclusion among the best European stocks to buy now.
Hedge funds are raising their stakes in Barclays PLC (NYSE:BCS) and the hedge fund sentiment around the stock is positive. At the close of Q1 2022, 16 hedge funds were long Barclays PLC (NYSE:BCS) with stakes worth $121.35 million. This is compared to 11 positions a quarter ago with stakes worth $86.80 million.
In the first quarter of 2022, Masters Capital Management raised its stakes in Barclays PLC (NYSE:BCS) by 25%, bringing them to $39.50 million. As of March 31, Masters Capital Management owns 5 million shares of the bank and is the largest shareholder in the company.
1. HSBC Holdings plc (NYSE:HSBC)
Number of Hedge Fund Holders: 16
HSBC Holdings plc (NYSE:HSBC) provides banking and financial services worldwide. The company operates through 3 business segments: Wealth & Personal Banking, Commercial Banking, and Global Banking & Markets.
Analysts are bullish on HSBC Holdings plc (NYSE:HSBC). On June 15, Investec analyst Ian Gordon upgraded HSBC Holdings plc (NYSE:HSBC) to Buy from Hold and gave the stock a 560 GBP price target. On June 24, Redburn analyst Fahed Kunwar upgraded HSBC Holdings plc (NYSE:HSBC) to Buy from Neutral.
Apart from positive analyst sentiment, HSBC Holdings plc (NYSE:HSBC) is currently trading at bargain levels and is also awarding its shareholders with dividends, which makes it rank high among the best European bank stocks to buy now. As of July 5, HSBC Holdings plc (NYSE:HSBC) has a forward dividend yield of 3.82% and a trailing-twelve-month PE ratio of 11.09.
Institutional investors are bullish on HSBC Holdings plc (NYSE:HSBC). Insider Monkey found 16 hedge funds bullish on HSBC Holdings plc (NYSE:HSBC) at the close of Q1 2022. These funds held collective stakes worth $221.62 million in the company, up from $150.19 million in the prior quarter with 10 positions. The hedge fund sentiment for the stock is positive.
As of March 31, Jim Simons’ Renaissance Technologies is the most bullish hedge fund on HSBC Holdings plc (NYSE:HSBC). The fund owns over 2.8 million shares of the European bank which amount to a stake of $95.99 million.
You can also take a look at 10 European Defense Stocks to Buy Now and 14 Best European Dividend Stocks To Buy.
