7 Cheap Bank Stocks To Invest In Before They Take Off

4. Inter & Co, Inc. (NASDAQ:INTR)

Earnings Growth: 37.43%

Forward P/E Ratio: 14.55

Analyst Upside Potential: 34.26% 

Inter & Co, Inc. (NASDAQ:INTR) is a Brazilian company that has created a global payments platform designed to simplify financial transactions for both individuals and businesses. The company originally started as a traditional bank, however, it has transitioned to become a digital multi-service bank through its super app. The app allows users to access various traditional banking services online along with online shopping, travel booking, and investment management.

The super app has become one of its differentiating factors as the company has successfully attracted more than 35 million clients resulting in around 15 million logins per day. During the fiscal third quarter of 2024, Inter & Co, Inc. (NASDAQ:INTR) reported a 74% growth in foreign exchange transactions, which is significantly higher than the market average. In addition, management has been continuously improving the platform. For instance, an AI-powered Inter Shop Concierge is launching soon which will enhance e-commerce traffic and monetization.

Inter & Co, Inc. (NASDAQ:INTR) executing a strategic framework known as the 60/30/30 plan, which focuses on enhancing market share, product penetration, and operational efficiency. On January 16, Morgan Stanley raised the price target from $4 to $4.50, while keeping an Underweight rating on the stock. The firm noted that the company’s 5-year plan presents a significant upside, however, they remain skeptical regarding management’s ability to deliver the plan. It is one of the cheap bank stocks to invest in before they take off.