Latest news with #bankstocks
Bloomberg
3 days ago
- Business
- Bloomberg
Abanca May Consider Potential IPO if Bank Valuations Stay High
Abanca Corporacion Bancaria SA said it may consider an initial public offering in the longer term if higher valuations for bank stocks prove sustainable. Juan Carlos Escotet, the chairman of the Spanish lender, said an IPO is an option after a 'radical change' seen in the market, with most rivals trading over their book value.
Yahoo
18-07-2025
- Business
- Yahoo
Value Investors: Don't Skip the International Banks
(0:30) - Screening For Strong Bank Investments That Fit Into Your Portfolio (5:50) - Tracey's Top Stock Picks For Your Watchlist Right Now (19:00) - Episode Roundup: BSAC, BSRR, TD, CIB, ISNPY Podcast@ Tracey ran a Zacks Premium screen looking for high Zacks Rank value stocks with a dividend. The screen returned 138 stocks, with international banks from Chile, Canada, Colombia and Italy. Including one American bank, these 5 banks have P/B ratios under 3.0 and are Strong Buys. Description: Welcome to Episode #412 of the Value Investor Podcast. Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio, shares some of her top value investing tips and stock picks. This week, she ran one of the Zacks Premium screens for value stocks, called 'High Rank Value.' The screen looks for companies with Zacks #1 (Strong Buy) and #2 (Buy) Ranks. Combined, the Strong Buy and Buy stocks total just 882 stocks out of the over 4300 stocks with the Zacks Rank. It then uses trailing price-to-earnings (P/E) ratio, not forward P/E, of less than 15 to look for value. The screen also uses the price-to-book (P/B) ratio of less than 3.0. A P/B less than 3 usually indicates value. Also included was a dividend, yielding 2% or more. This screen produced 138 stocks. What was in it? A lot of banks. But not just any banks. Many were international banks from across the globe. Tracey picked out 5 Zacks #1 Rank (Strong Buy) stocks to feature. 4 are international banks and one is a small US community bank. 5 Strong Buy Bank Stocks in 2025 1. Banco Santander-Chile (BSAC) Banco Santander-Chile has been in Chile since 1978. It is the largest bank in Chile and is part of Santander Group. Banco Santander-Chile has a market cap of $11 billion. Shares have been on a tear. Banco Santander-Chile is up 25.6% year-to-date and is trading near a 5-year high it last hit in 2021. It's a Zacks #1 (Strong Buy). For banks, analysts look at the price-to-book (P/B) ratio, and so did this screen. Analysts say to buy a bank when the P/B ratio is 1.0 and sell at 2.0. Banco Santander-Chile has a P/B ratio of 2.5 so it's expensive for a bank. But investors will get a dividend, yielding 4.2%. Should value investors consider Banco Santander-Chile, or is it too hot to handle? 2. The Toronto-Dominion Bank (TD) The Toronto-Dominion Bank is a large cap Canadian bank with a market cap of $126.4 billion. It calls itself one of the top 10 North American banks. Shares of Toronto-Dominion Bank are up 39% year-to-date and are at 3-year highs. But it's still attractively priced with a P/B ratio of just 1.56. It's got the #1 Rank and a dividend yielding 4.2%. Should value investors put The Toronto-Dominion Bank on their short list? 3. BanColombia (CIB) BanColombia was founded in 1875 in Colombia. It's website says it has 146 years supporting the country's development. BanColombia has a market cap of $10.7 billion. Shares are up 42.8% year-to-date but it's still cheap with a P/B ratio of 1.29. BanColombia pays a dividend, but it appears that it already paid it for 2025. Zacks has it yielding 12.8%. Be sure to confirm the dividend, if you're looking for income. It's a Zacks #1 (Strong Buy). Should value investors put BanColombia on their short list? 4. Intesa Sanpaolo S.p.A. (ISNPY) Intesa Sanpaolo is a large Italian bank specializing in retail, corporate and wealth management. It has 2966 branches in Italy, 762 branches in other European countries, 176 branches in Africa and a scattering in Asia, the Middle East and the Americas. Intesa Sanpaolo has a market cap of $100.9 billion. Shares of Intesa Sanpaolo are up 42% year-to-date and are trading near 5-year highs. Yet, it's still attractively priced, with a P/B ratio of 1.43. This Zacks Rank #1 (Strong Buy) is paying a dividend yielding 4.9% on Please confirm all of these dividend yields with the companies directly. Should value investors look to Europe, and Intesa Sanpaolo, for opportunities in bank stocks? 5. Sierra Bancorp (BSRR) Sierra Bancorp is the holding company for the Bank of the Sierra. It was founded in 1977 in the southern San Joaquin Valley and now has 35 locations throughout California. It's a small bank, with a market cap of $423 million. Shares are up 8.5% year-to-date and are trading near the 5-year highs. It's cheap with a P/B ratio of just 1.2. This Zacks Rank #1 (Strong Buy) also pays a dividend, currently yielding 3.3%. Should value investors keep an eye out for American small cap banks like Sierra Bancorp? What Else Should You Know About High Rank Value Stocks? Tune into this week's podcast to find out. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Toronto Dominion Bank (The) (TD) : Free Stock Analysis Report Sierra Bancorp (BSRR) : Free Stock Analysis Report Banco Santander Chile (BSAC) : Free Stock Analysis Report BanColombia S.A. (CIB) : Free Stock Analysis Report Intesa Sanpaolo SpA (ISNPY) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
16-07-2025
- Business
- Yahoo
The Smartest Bank Stocks to Buy With $100 Right Now
SoFi is adding high-value services to its platform that target its specific market. Nu is adding millions of customers quarterly, but it's still a small fish in a large sea of financial companies in Latin America. 10 stocks we like better than SoFi Technologies › Bank stocks as a category are generally high-value, low-growth stocks. They typically pay dividends, often with attractive yields, and they're reliable for long-term growth as they drive the economy. However, if you're looking for great bank stocks, I'm going to turn the tables here and present two quality candidates that are high-octane growth stocks with no dividends that are not for the risk-averse investor. If that fits your investing profile, and you have $100 to invest right now, SoFi Technologies (NASDAQ: SOFI) and Nu Holdings (NYSE: NU) are two stocks you should take a look at. SoFi was one of the legions of special-purpose acquisition companies (SPACs) that stormed the markets a few years ago before petering out to a trickle these days. It's one of the few that actually took off, becoming a real industry disruptor with loads of potential. The bank is all online, with a multitude of easy-to-use services geared toward the novice user. Since it was created to be completely digital, and it's still small and growing, it has agility and flexibility that give it a leg up, in certain ways, over legacy banks. It's attracting customers at a rapid pace, with a record 800,000 new accounts in 2025's first quarter, a 34% increase from the same period last year. The target market is young professionals who are getting their feet wet in finance, with good jobs and a long runway in increasing engagement and adoption of financial services. The company calls its growth strategy the financial services productivity loop, and it involves cross-selling and upselling more services to monetize its user base more effectively over time. That means adding new customers and impressing them enough to keep them, as well as launching new services to have a broad assortment of products and solutions. To appeal to this specific market, it's using some aggressive marketing techniques like naming sports arenas that are meaningful to these users and sponsoring events they appreciate. More than that, it's rolling out services with the intent to deliver real value to its customers rather than simply mimicking what's already available through other banks. For example, it has offered access to initial public offerings (IPOs) usually only available to institutional investors, and it recently announced that it will offer users instant global remittances through a blockchain. Last week, it announced access to private markets through several partnerships. SoFi's core segment is lending, and as interest rates have started to come down, it has been boasting strong revenue gains and profit growth, as well as improving credit metrics. But it's focusing on expanding its platform, specifically in the financial services segment, which is low cost and fee based. It's probably only a matter of time until this segment becomes its largest, and scale is resulting in increasing net income. Chief Executive Officer Anthony Noto envisions SoFi becoming a top-10 bank with a huge, long-term opportunity. Nu is similar to SoFi, but it operates in Brazil, Mexico, and Colombia. It's growing fast, adding millions of new customers quarterly, but it has a way to go. The bank added more than 4.3 million new accounts in 2025's Q1 for a total of 118.6 million. The vast majority, 104.3 million, are in the company's home market of Brazil, where more than half of the adult population has a Nu account. Although it's still adding millions of new customers there, it's growing even faster in Mexico and Colombia where it's still a small presence. It only recently launched savings accounts in these countries, and it was recently approved for a bank charter in Mexico, making it the first all-digital bank to get one. Customers are highly engaged, and the company is reporting strong growth metrics. Revenue increased 40% year over year in 2025's Q1, and net income was up 74% to $557.2 million. Although sales growth decelerated in the quarter, Nu has been demonstrating admirable performance considering the high inflation and overall volatile macroeconomy in Brazil. Deposits increased 48% over last year in the quarter, and loan originations were up 64%, but net interest margin (NIM) was down from 19.5% last year to 17.5% this year. Management cites its heavy investments in expanding the business in Mexico and Colombia as pressuring the margin. However, even though those two regions aren't yet profitable, the Brazil business is profitable enough on its own to keep earnings positive and allow for newer growth areas. Nu has a small share of the financial services system in its regions, specifically in Mexico, but it's growing quickly, and there's a tremendous opportunity to capture more. Now is an excellent time to get in as it keeps expanding. Before you buy stock in SoFi Technologies, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and SoFi Technologies wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $680,559!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,005,670!* Now, it's worth noting Stock Advisor's total average return is 1,053% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 15, 2025 Jennifer Saibil has positions in Nu Holdings and SoFi Technologies. The Motley Fool recommends Nu Holdings. The Motley Fool has a disclosure policy. The Smartest Bank Stocks to Buy With $100 Right Now was originally published by The Motley Fool
Reuters
14-07-2025
- Business
- Reuters
HEDGE FLOW Hedge funds dump banks, buy the dip in consumer staples, Goldman Sachs says
LONDON, July 14 (Reuters) - Hedge funds sold bank stocks for the second straight week and piled into consumer staples at the fastest pace in almost two years, a Goldman Sachs note seen by Reuters on Monday showed, just ahead of earnings announcements this week. Wall Street's march to record highs could be put to the test this week as major banks start to report second-quarter earnings and June's consumer price data for the U.S. is published on Tuesday. Hedge funds fled long positions in U.S. banks and global financial services companies for the second week in a row last week, data from Goldman Sachs prime brokerage desk showed. A long position expects an asset price to rise, whereas a short position bets it will fall. The cohort ditched long positions and added short positions on European financial stocks, said Goldman. Banks, financial services firms and insurance companies were all net sold while those in trading and consumer finance were net bought, said the investment bank. Meanwhile, speculators last week piled into the worst performing U.S. stock sector, consumer staples, the data showed. Consumer staples include products like beverages, food and tobacco which are often relatively shielded in economic downturns because they are essential items. The hedge fund buying comes as analysts expect these next set of quarterly reports to reveal the impact of U.S. President Donald Trump's tariffs on corporate balance sheets and the wider economy. "If the tariffs snap back higher on August 1, and we then get an underwhelming jobs report, that would easily resurrect fears around a U.S. recession," said Deutsche Bank analyst Henry Allen. Consumer staples has been the most net-bought stock sector at the Goldman Sachs prime brokerage desk in July, Goldman said. Global hedge funds trading stock markets systematically are down 1.8% for the month but still up just over 10% for the year. Stock pickers, largely flat for the month so far, have posted a 6.6% return this year.
Yahoo
14-07-2025
- Business
- Yahoo
Earnings To Watch: Wells Fargo (WFC) Reports Q2 Results Tomorrow
Financial services giant Wells Fargo (NYSE:WFC) will be reporting earnings this Tuesday before market open. Here's what to expect. Wells Fargo missed analysts' revenue expectations by 2.2% last quarter, reporting revenues of $20.15 billion, down 3.4% year on year. It was a softer quarter for the company, with a significant miss of analysts' net interest income estimates and EPS in line with analysts' estimates. Is Wells Fargo a buy or sell going into earnings? Read our full analysis here, it's free. This quarter, analysts are expecting Wells Fargo's revenue to be flat year on year at $20.65 billion, in line with its flat revenue from the same quarter last year. Adjusted earnings are expected to come in at $1.40 per share. Heading into earnings, analysts covering the company have grown increasingly bearish with revenue estimates seeing 4 downward revisions over the last 30 days (we track 8 analysts). Wells Fargo has missed Wall Street's revenue estimates twice over the last two years. With Wells Fargo being the first among its peers to report earnings this season, we don't have anywhere else to look to get a hint at how this quarter will unravel for banks stocks. However, there has been positive investor sentiment in the segment, with share prices up 10.3% on average over the last month. Wells Fargo is up 12.9% during the same time and is heading into earnings with an average analyst price target of $86.45 (compared to the current share price of $82.62). Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link. StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
