8 Cheap Penny Stocks to Buy Right Now

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

Share Price: $4.81

Forward P/E: 6.31

EPS Growth This Year: 14.50%

Number of Hedge Fund Holders: 9

Banco Santander (NYSE:SAN) is a Spain-based company that operates as a retail and commercial bank. Its segments are scattered across Continental Europe, the United Kingdom, Latin America, and the United States.

Banco Santander’s (NYSE:SAN) Q2 marked a record quarter, showing the strength of its strategy and the resilience of its business model. Profit grew by 20% compared to Q2 2023, reaching €3.2 billion. This result came even after the impact of €450 million of one-time charges, net of taxes and minorities. Profit in the first half of 2024 reached €6.1 billion, growing at a record rate of 16%. This was supported by strong cost of revenue growth in all regions and global businesses.

The company is continually accelerating its H1 transformation to become more automated, simpler, and integrated. As a result of these initiatives, its efficiency ratio improved by 261 basis points to 41.6%, its best in 15 years. In addition, the bank’s strict capital discipline, solid credit quality, and strong balance sheet with a sound capital ratio have allowed it to achieve profitable growth and shareholder value creation, with TNAV plus dividend per share growing 12%.

Its global businesses are continually pushing profitability, delivering 87 basis points in efficiency gains. Its proprietary and global tech capabilities have generated 71 basis points in efficiencies so far. The company drives these strong results by offering customers optimal user experience and products. It also holds operational leverage from its global platforms and common tech, which is reflected in the performance of its global businesses. Its retail and consumer businesses efficiency ratio improved by 480 basis points and 270 basis points, respectively, highlighting its strong operational model. The company is also leveraging its expertise to grow in the US and expand its reach. Banco Santander (NYSE:SAN) ranks fifth on our list of the cheap penny stocks to buy right now.