8 Most Profitable Bank Stocks To Buy According to Analysts

1. Shinhan Financial Group Co., Ltd. (NYSE:SHG)

Average Upside Potential: 48.04%

TTM Net Income: $3.337 Billion

Shinhan Financial Group Co., Ltd. (NYSE:SHG) is a financial holding company that originated from Shinhan Bank, which came into being in 1982 and was the first private bank in Korea. SHG serves as a Korean finance pioneer.

Shinhan Bank positioned itself as a blue-chip bank by developing a nationwide network and going public with an IPO. It took the initiative to set up a financial holding company that would enable it to grow its scale across multiple sectors as a comprehensive financial group. Shinhan Financial Group is currently one of the leading Korean financial leaders, leading the way in innovation. A customer-centered business has made the company what it is today, driving its sustainable growth.

Regarding Shinhan Financial Group Co., Ltd. (NYSE:SHG), Polaris Global Equity Strategy stated the following in its Q3 2024 investor letter:

“On the backdrop of interest rate cuts, financials shined on expectations for loan demand and cheaper cost of capital; in fact, all sector holdings were in absolute positive territory. Shinhan Financial Group Co., Ltd. (NYSE:SHG) was the top contributor, with a second quarter earnings beat on better non-interest income with credit costs under control. An enhanced shareholder return policy was a pleasant upside surprise, as Shinhan committed to returning 50% of earnings to investors through dividends and share buybacks by 2027.”

While we acknowledge the potential of SHG as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for a deeply undervalued AI stock that is more promising than SHG but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.

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