Cheap Stocks: Banco Santander (SAN)
SAN Stock Price: $9.79
With a market cap of $116 billion, Spain’s Banco Santander (SAN) is the biggest bank in the eurozone and one of the biggest in the world, but the stumbling recovery on the continent was hurting shares.
Not anymore. SAN is up 8% for the year-to-date, and this cheap stock has more upside to come.
Spain’s biggest lender has been writing off billions in bad loans for sour real estate, and there are likely more to come, but the bank’s balance sheet is strong and it has an enviable capital position. Indeed, Banco Santander was a standout in European financial sector stress tests.
Best of all, SAN stock price of $9.79 makes it easy for retail investors to build a position. SAN’s valuation is also compelling. Shares go for 12 times forward earnings (P/E), which is historically cheap for the financial sector. The price-to-book (P/B) is a healthy and reasonable 1.2. The dividend yield of 6.4% is terrific, too.