7 Best Performing Long Term Stocks in 2024

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

Average Analyst Price Target Upside: 61.79%

Stock Price Performance YTD: 161.56%

Number of Hedge Fund Holders: 15

Grupo Financiero Galicia S.A. (NASDAQ:GGAL) is a prominent financial services holding company in Argentina with over a century of experience in the industry. It has a diversified portfolio of subsidiaries, including Banco Galicia, Naranja X, Galicia Seguros, and Galicia Asset Management.

The company offers a wide range of financial products and services. The services range from savings accounts and credit facilities to investment options and insurance products. It is among our best performing long term stocks in 2024.

The stock has a consensus Buy rating among 5 analysts, and its average price target of $71.77 represents an upside of 61.79% from current levels, as of September 24. Additionally, the stock is up by 161.56% year-to-date.

The company has been actively pursuing growth through strategic acquisitions. Recently, Grupo Financiero Galicia announced a significant acquisition that has gained attention. The Argentine Central Bank approved the company’s plan to acquire HSBC Argentina Holdings S.A. and its affiliates.

The acquisition is set to reshape the banking landscape in Argentina and is expected to improve the company’s market position. The acquisition will be finalized once all regulatory approvals and purchase agreement terms are met.

In 2023, Grupo Financiero’s (NASDAQ:GGAL) insurance subsidiary, Galicia Seguros, acquired Grupo Sura’s insurance business in Argentina for approximately $19 million. The acquisition added around 800,000 customers and expanded the company’s operational capacity with 13 branches and 500 employees.

Such moves align with Galicia Seguros’ goal of becoming a leading insurance provider in the region. Previous strategic acquisitions, such as the purchase of 34 Grados Sur Securities SA for around $441,230, further show the company’s proactive approach to growth.

On September 3, Citi analyst Brian Flores upgraded the stock to Buy from Neutral with a $54 price target. The change is driven by positive economic indicators and an expectation for sustained credit demand as the economy stabilizes. Flores highlighted the company’s potential for higher return on equity in 2024 and 2025, which suggests a promising financial trajectory.

Similarly, JPMorgan has taken a more bullish stance on the stock. On August 30, JPMorgan double upgraded Grupo Financiero (NASDAQ:GGAL) to Overweight from Underweight with a $54 price target. After years of cautious assessments of Argentine banks, the firm now recognizes macro and micro improvements that could positively impact the company.

While some uncertainties remain, JPMorgan believes that the bank is well-positioned to capitalize on a resurgence in loan demand, marking it as a preferred choice for investors looking to engage with the Argentine financial sector.