5 Cheap Bank Stocks To Buy Before They Take Off

In this article, we will be taking a look at 5 cheap bank stocks to buy before they take off. To read our detailed analysis of the banking sector in 2023, you can go directly to see the 11 Cheap Bank Stocks To Buy Before They Take Off.

5. Citigroup Inc. (NYSE:C)

Number of Hedge Fund Holders: 79

P/E Ratio as of August 13: 7.66

In total, 79 hedge funds were long Citigroup Inc. (NYSE:C) in the first quarter, with a total stake value of $7.7 billion.

Citigroup Inc. (NYSE:C) is a diversified banking company. It is based in New York.

Odeon Capital analyst Dick Bove upgraded Citigroup Inc. (NYSE:C) shares from Hold to Buy while announcing a $50.51 price target on the stock on July 18.

4. HSBC Holdings plc (NYSE:HSBC)

Number of Hedge Fund Holders: 13

P/E Ratio as of August 13: 7.16

HSBC Holdings plc (NYSE:HSBC) is a banking company based in London, United Kingdom. It operates through its Wealth and Personal Banking, Commercial Banking, and Global Banking and Markets segments.

HSBC Holdings plc (NYSE:HSBC) had 13 hedge funds long its stock in the first quarter, with a total stake value of $96.7 million.

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

Number of Hedge Fund Holders: 15

P/E Ratio as of August 13: 5.31

Banco Santander, S.A. (NYSE:SAN) is a Madrid, Spain-based diversified banking company. It provides retail and commercial banking products and services to individuals, small and medium-sized enterprises, and large companies across the globe.

In the first quarter, 15 hedge funds were long Banco Santander, S.A. (NYSE:SAN). Their total stake value was $139.8 million.

2. Barclays PLC (NYSE:BCS)

Number of Hedge Fund Holders: 15

P/E Ratio as of August 13: 5.08

A total of 15 hedge funds were long Barclays PLC (NYSE:BCS) in the first quarter, with a total stake value of $178.9 million.

Barclays PLC (NYSE:BCS) is another London, United Kingdom-based banking company on our list. It operates through its Barclays UK and Barclays International divisions to provide retail banking, credit cards, and wholesale banking services, among more.

1. Deutsche Bank AG (NYSE:DB)

Number of Hedge Fund Holders: 18

P/E Ratio as of August 13: 4.83

Andrew Lim at Societe Generale has a Hold rating on shares of Deutsche Bank AG (NYSE:DB) as of July 10.

There were 18 hedge funds long Deutsche Bank AG (NYSE:DB) in the first quarter. Their total stake value was $1.1 billion.

Deutsche Bank AG (NYSE:DB) is a provider of corporate and investment banking and asset management products and services. It is based in Germany.

Third Avenue Management mentioned Deutsche Bank AG (NYSE:DB) in its first-quarter 2023 investor letter:

“The largest detractors from Fund performance during the quarter included two banks, Comerica and Deutsche Bank Aktiengesellschaft (NYSE:DB). The Fund’s actual bank exposure at quarter end totaled 9.52% and is comprised of Bank of Ireland, Deutsche Bank and Comerica, in order of position size.

As it relates to Deutsche Bank (“DB”), we deem the current operating environment somewhat more difficult to gauge, primarily because of the nature of DB’s business lines. A significant portion of the business is comprised of various forms of investment banking in which it is critical that customers continue to have confidence in the bank as a strong and safe counterparty. The transactional daisy chain that runs from investment bank to investment bank, which has from time-to[1]time spread liquidity and solvency problems from investment bank to investment bank, is real and was brought back to the fore by growing fears over Credit Suisse’s solvency as clients fled in an accelerating trend. To date, it appears that DB has handled the turmoil well, maintained the confidence of its clients, and possibly even benefited on the margin with early reports of some additional client flows and hiring of former CS bankers. Had DB not spent the last several years improving its capital base, reducing leverage, reducing costs, exiting various business lines, laying past crises to rest, and improving controls, it is entirely possible that DB would be right alongside Credit Suisse on the front page of the financial news for all of the wrong reasons. Again, the situation continues to be fluid but DB’s ability to weather the turmoil to date, including some very peculiar activity in the credit default swap market that created some appearance of panic, strikes us as a testament to all of the heavy lifting done by DB’s management team in recent years.”

See also 12 Best Performing Bank Stocks in 2023 and 11 Best Local Bank Stocks to Buy.