7 Most Undervalued Financial Stocks To Buy According To Analysts

2. XP Inc. (NASDAQ:XP)

Analyst Upside: 79.47%

Forward P/E: 7.72

XP Inc. (NASDAQ:XP) is a leading technology-driven financial services platform in Brazil. The company offers low-fee financial products and services focused on disintermediating traditional financial institutions. XP also develops innovative products and technologies to empower its clients.

The company has shown remarkable growth, with client assets increasing at a 24.3% CAGR since its IPO in 2019, and a 51.3% CAGR since its capital investment in 2012. In Q3 2024, XP Inc.’s (NASDAQ:XP) fixed-income retail business increased by 31% annually, reaching R$938 million. Moreover, the acquisition of Banco Modal S.A. will expand XP’s client base and improve its ability to provide a wide range of financial solutions.

Brazil is expected to add over 6 million new households to its middle class by 2029, as per the Brazilian Chamber of Commerce. XP Inc. is focused on becoming a leader in retail investments and its potential for expansion makes it an appealing investment.