11 Most Profitable Financial Stocks to Invest In

7. Banco Santander, S.A. (NYSE:SAN)

Net Income (TTM): $15.22 billion

Profit Margin (TTM): 26.8%

Number of Hedge Fund holdings: 16

On January 13, Kepler Cheuvreux upgraded Banco Santander, S.A. (NYSE:SAN) to Buy from Hold and substantially lifted the price target from EUR8.81 to EUR12.40. The firm associates this positive stance with an updated methodology that more accurately reflects technology’s impact on the bank’s valuation, which it believes was previously underestimated. Having said this, the firm now forecasts a 20% Return on Tangible Equity (RoTE) for the company by 2029.

For the 2025-26 financial period, Kepler Cheuvreux expects EUR12.4 billion in share buybacks, surpassing the bank’s initial target by an impressive 25%. Thus, through this uplift, the firm now fully accounts for the investment case, addressing what was previously described as a stretching gap between the earlier price target and the stock’s price.

Overall, Banco Santander, S.A. (NYSE:SAN) is a consensus Buy, with 82% of the analysts covering the stock bullish and the remaining 18% holding a cautious view. While the consensus 1-year median price target implies 4.01% upside, the highest and lowest estimates imply 17.28% upside and 20.73% downside, respectively.

Banco Santander, S.A. (NYSE:SAN), headquartered in Madrid, Spain, is a provider of a diverse range of financial products and services to individuals, enterprises, and corporations. Incorporated in 1856, the company operates through five segments, including Retail & Commercial Banking, Wealth Management & Insurance, and Payments.