8 Most Undervalued Value Stocks To Buy According To Analysts

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

Average Upside Potential: 23.70%

Forward P/E: 6.36

EPS Growth This Year: 13.00% 

Number of Hedge Fund Holders: 9

Banco Santander, S.A. (NYSE:SAN) is a leading Spanish multinational financial services company. Santander was founded in 1857 and it became Spain’s seventh-largest financial institution by its 100th anniversary in 1957. The company is structured under five global businesses including Retail & Commercial Banking, Digital Consumer Bank, Corporate & Investment Banking, Wealth Management & Insurance, and Payments.

The firm’s business model is based upon unique competitive advantages including diversification, a global scale, and customer focus. While SAN focuses on achieving well-balanced diversification between businesses and markets, its in-market and global scale helps enhance local banks’ profitability. As of June 2024, Banco Santander, S.A. (NYSE:SAN) has 168 million of customers and €1,786 total assets. In recent years, the company has expanded its customer base with balanced growth by business and regions.

Banco Santander, S.A. (NYSE:SAN) closed a record first half of 2024. The company reported a profit of €6,059 million in the first half of the year, up 16% year-over-year. The solid year-over-year profit increase was motivated by strong growth in net operating income, supported by efficiency improvements and customer revenue. Net interest income rose 12% to a record €23,457 million, driven by growth in all businesses, particularly in Retail, CIB, and Wealth.

With a strong momentum across the business, Banco Santander, S.A. (NYSE:SAN) is poised to grow. The unique combination of in-market and global scale enables the firm to be one of the most profitable banks in its markets. The strength of Santander’s business model is evident from its results.