We recently published a list of 10 Oversold Financial Stocks To Buy Right Now. In this article, we are going to take a look at where Shinhan Financial Group Co., Ltd. (NYSE:SHG) stands against other oversold financial stocks to buy right now.
On March 7th, Federal Reserve Chairman Jerome Powell indicated that the central bank is in no hurry to adjust interest rates while it awaits more clarity on the impact of President Trump’s economic policies. Powell acknowledged the Trump administration’s policy changes in trade, immigration, fiscal policy, and regulation, noting that the combined effect of these changes will be what matters for the economy and the Fed’s monetary policy. The chairman also stated that the Fed is focused on distinguishing genuine economic signals from short-term market fluctuations as the economic outlook evolves. The comments suggest the Fed will likely keep the interest rate target unchanged at its current level of 4.25% to 4.5% until there are clear changes in the economic landscape.
To discuss this recent news Hightower’s Stephanie Link, Yardeni Research’s Ed Yardeni, and BMO’s Yung-Yu Ma joined CNBC for an interview. The comments from the Chairman helped calm the market, Ed Yardeni mentioned that Powell’s remarks reflected reason and calmness as opposed to the noise-to-signal ratio, which has gone off the charts. He thinks that the markets are also trying to find reasonableness in the current environment. Yardeni noted that Powell’s analysis of the economy was right and he thinks that the economy is going to be quite resilient. Yardeni highlighted that if we look at the past 3 years the market was put up with the challenge of tightening monitoring policy and we did not go into a recession. The market is going to be tested and challenged again with the current tariff policies. Yardeni thinks that most of these policies are going to be negotiated away. However, the issue here is that negotiations are supposed to be behind closed doors. Instead, we are seeing a lot of noise in the current scenario. Regardless, Yardeni believes that the market is going to get used to the noise and will move past it with resilience.
Yung-Yu Ma agreed with Yardeni that the market is in a high uncertainty and disruption phase. He advised the investors to be patient and not chase bounces when they happen. Yung-Yu Ma believes that the economy will stabilize however it will take some time as we have a timing mismatch between the disruptions and the Fed’s decision to cut rates.
Our Methodology
To compile the list of 10 oversold financial stocks to buy right now we used the Finviz stock screener and CNN as our sources. Using the screener, we aggregated a list of financial stocks that have gone down by 10% to 30% over the past months but analysts see at least double the upside. Next, we cross-checked the performance and analyst upside potential from CNN and ranked the stocks in ascending order of their upside potential. Please note that the data was recorded on March 7, 2025.
Why are we interested in 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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Shinhan Financial Group Co., Ltd. (NYSE:SHG)
6-Month Performance: -24.90%
Number of Hedge Fund Holders: 15
Analysts Upside Potential: 56.61%
Shinhan Financial Group Co., Ltd. (NYSE:SHG) is a South Korean holding company that provides a range of financial services to individuals, businesses, and other financial institutions. The services it provides include banking, security brokerage and trust banking, asset management, and credit cards.
During the fiscal year 2024, the bank reported increasing its net income by 3.4% year-over-year driven by higher interest income and less provisioning. Moreover, the operating income before expenses also improved by 2.9% during the same time. The interest income, which grew by 5.4% year-over-year, was driven by bank-focused loan growth and good margin management. The bank has been focused on strengthening its customer base through quality growth in the financial platform. It is also focusing on boosting digital sales and plans to enhance employee productivity. It is one of the oversold financial stocks to buy right now.
Polaris Global Equity Strategy stated the following regarding Shinhan Financial Group Co., Ltd. (NYSE:SHG) 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.”
Overall, SHG ranks 9th on our list of oversold financial stocks to buy right now. While we acknowledge the potential of SHG as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an 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.
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Disclosure: None. This article is originally published at Insider Monkey.
