Core Viewpoint - Banco Santander (SAN) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook based on rising earnings estimates, which significantly influence stock prices [1][3]. Earnings Estimates and Stock Performance - The Zacks rating system emphasizes the correlation between changes in earnings estimates and stock price movements, suggesting that upward revisions can lead to higher stock valuations [4][6]. - For the fiscal year ending December 2024, Banco Santander is projected to earn $0.83 per share, reflecting an 18.6% increase from the previous year, with a 2% rise in the Zacks Consensus Estimate over the past three months [8]. Zacks Rating System - The Zacks Rank system categorizes stocks into five groups based on earnings estimates, with a strong historical performance, where Zacks Rank 1 stocks have averaged a +25% annual return since 1988 [7]. - The upgrade of Banco Santander to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [10].

Core Viewpoint - Banco Santander has experienced a frustrating period for investors, with shares underperforming broader European financials despite strong business performance and record half-year figures [1][8]. Financial Performance - Santander reported record net interest income of approximately €23.5 billion, fee income of around €6.5 billion, and profit attributable to the parent of about €6.1 billion for the first half of 2024 [4]. - The bank achieved a cost/income ratio of approximately 41.6%, the strongest in fifteen years, and a return on tangible equity (ROTE) of 15.9%, which is within the management's medium-term target range of 15-17% [4][5]. Geographic Performance - The Spanish business, contributing about 25% of H1 earnings, saw net interest income increase over 15% year-on-year to €3.65 billion, with ROTE exceeding 20% [5]. - The Brazilian business reported a nearly 40% increase in net income to €1.1 billion, with ROTE expanding by approximately 380 basis points to over 15.8% [5]. - The U.K. business faced challenges, with net profit down 23% to €630 million and ROTE declining by around 300 basis points to approximately 10.8% due to higher funding costs and elevated operating costs [5]. Cost Management and Credit Quality - Operating expenses increased by 3.5% to €12.9 billion, which is manageable given the inflation rate of around 4% [6]. - Provisioning expenses were €6.2 billion, approximately 117 basis points of total loans, aligning with the management's target of around 120 basis points [6]. Valuation and Returns - Santander's tangible book value (TBV) was reported at €4.94 per share, an increase of about 8% year-on-year, while the stock trades at a price-to-tangible book value (P/TBV) multiple of around 0.80x [7]. - The bank's management has raised 2024 profitability guidance, now expecting a ROTE greater than 16%, which translates to a P/E ratio of about 5x, indicating a 20% earnings yield [7]. - Capital returns are projected at 50% of net income, split equally between dividends and buybacks, suggesting a cash return of approximately 10% per annum for investors [7]. Market Outlook - Despite the recent decline in shares, the underlying business performance remains strong, with profitability in the Spanish market expected to face gradual pressure as Eurozone interest rates fall [8]. - The current valuation presents an attractive opportunity for investors, with potential for double-digit annualized returns from dividends and buybacks alone [8].

Banco Santander Brasil (NYSE:BSBR) reported earnings today. After the challenges of 2022 and 2023, results continued to show improvement across most fronts. This article covers the company's 2Q24 results and earnings call. It also introduces the company from my perspective, and my thesis on its main competition challenges. Overall, I believe the stock is an opportunity at these prices, given the expected earnings and growth yields of the company. The younger brother of the big five: Santander Brasil is one ...

I am joined here today by our CEO, Mr. Hector Grisi, and our CFO, Mr. Jose Garcia-Cantera. Following their presentations, we will open the floor for any questions you may have in the Q&A session. [Operator Instructions] Hector Grisi The main highlights of our results in the first half of 2024 are the following. Q2 was another record quarter for Santander, which shows the strength of our strategy and the resilience of our business model. Profit reached €3.2 billion, that's 20% above Q2 '23, even after the im ...

Many analysts and investors were dubious of my over 2-year endorsement and recommendation/rating of Santander (NYSE:SAN) as an investment. I say value, if invested in properly, comes to those who wait - and indeed, that is what I believe that we are seeing here. The company is now showing S&P500-beating averages and trends, and my position in this bank is now not only firmly in the green but outperforming overall. The company's trajectory is expected to be positive, supported by improved fundamentals and ea ...

FORM 6-K SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Report of Foreign Issuer Pursuant to Rule 13a-16 or 15d-16 of the Securities Exchange Act of 1934 For the month of July, 2024 Commission File Number: 001-12518 Banco Santander, S.A. (Exact name of registrant as specified in its charter) Ciudad Grupo Santander 28660 Boadilla del Monte (Madrid) Spain (Address of principal executive office) Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F ...

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers. On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus ...

Banco Santander (SAN) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #2 (Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices. The change in a company's future earnings potential, as reflected in earnings estimate revisions, and the nearterm price movement of its stock are proven to be strongly correlated. The influence of institutional investors has a partial contribution to this relations ...

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels. We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits. SAN currently has a forward P/E rati ...

Banco Santander (SAN) has been beaten down lately with too much selling pressure. While the stock has lost 11.6% over the past four weeks, there is light at the end of the tunnel as it is now in oversold territory and Wall Street analysts expect the company to report better earnings than they predicted earlier. We use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spotting whether a stock is oversold. This is a momentum oscillator that measures the speed and change of ...