We recently compiled a list of the 8 Most Profitable Bank Stocks To Buy According to Analysts. In this article, we are going to take a look at where Banco Santander, S.A. (NYSE:SAN) stands against the other AI stocks investors shouldn’t miss.
The US Banking Industry: Expectations from the New Admin
Financials is one of the sectors being deemed as winner post Trump’s victory with investors betting on looser regulation and higher M&A activity. Goldman Sachs CEO David Solomon pointed to the optimism in the environment, saying:
“There has been a meaningful shift in CEO confidence, particularly following the results of the US election”
Yahoo reported that Gabelli Funds portfolio manager Mac Sykes thinks that the deregulation will benefit the banks and that he forecasts lighter oversight of the banking market as a catalyst for the group.
While many are looking forward to the possibility of finally being able to make acquisitions in the financial space under the new US admin, UBS CEO Sergio Ermotti joined CNBC and stated that he doesn’t think there is going to be a lot of deregulation. Rather, he sees a rationalization of the existing banking regulation, which he thinks is appropriate for big banks that shouldn’t be ‘massively deregulated’. Simultaneously, he sees consolidation allowed in the US among second-tier banks.
At the same time, Bank of New York Mellon CEO Robin Vince is more optimistic about Trump’s return to the White House in terms of the impact on the financial sector. As he joined Yahoo Finance at the 2025 World Economic Forum, he was not that concerned regarding the risks tied to potential loose regulation. He stated:
“To see a government that’s really focused on growth and being able to make the economy everything that it can be, because ultimately, as one of America’s leading banks, we are focused on helping our customers to be able to grow and thrive. You know, that’s what our platforms are all about”
Our Methodology:
In order to compile a list of the 8 most profitable bank stocks to buy according to analysts, we used stock screeners to shortlist bank stocks with over $1 billion TTM net income. Moving on, we shortlisted the top 8 stocks from our list which had the highest average upside potential, as of February 3. The 8 most profitable bank stocks to buy according to analysts have been arranged in ascending order of their average upside potentials.
At Insider Monkey we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A view of a large corporate office building, illuminated at night to show its power and reach.
Banco Santander, S.A. (NYSE:SAN)
Average Upside Potential: 19.33%
TTM Net Income: $9.121 Billion
Banco Santander, S.A. (NYSE:SAN) is a 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.
SAN’s business model is based upon unique competitive advantages including diversification, a global scale, and customer focus. While Banco Santander, S.A. (NYSE:SAN) focuses on achieving well-balanced diversification between businesses and markets, its in-market and global scale helps enhance local banks’ profitability. As of September 2024, SAN boasts 171 million customers and €1,802 total assets. In recent years, the company has expanded its customer base with balanced growth by business and regions.
Recent news circulating regarding the company is that it is reviewing its presence in Britain according to a person familiar with the matter. While Santander left a statement referring to the UK as a core market, the bank is looking into strategic options, including leaving Britain to focus on larger growth regions such as the United States, as reported by the Financial Times. The higher costs of business for banks in Britain have been mentioned as a concern by several financial trade bodies, relative to international competitors.
Overall SAN ranks 5th on our list of the most profitable bank stocks to buy according to analysts. While we acknowledge the potential of SAN 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 SAN 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.
Disclosure: None. This article was originally published at Insider Monkey.
