Why Banco Santander Is Poised to Bounce Back

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Spanish banking giant Banco Santander (NYSE: SAN  ) has earned a respected four-star ranking.

With that in mind, let's take a closer look at Santander and see what CAPS investors are saying about the stock right now.

Santander facts

Headquarters (founded)

Madrid (1857)

Market Cap

$80.0 billion

Industry

Diversified banks

Trailing-12-Month Revenue

$36.2 billion

Management

Second Vice Chairman/CEO Alfredo Abad
Third Vice Chairman Matias Inciarte

Return on Equity (average, past 3 years)

7.7%

Cash / Debt

$471.4 billion / $432.4 billion

Dividend Yield

8.2%

Competitors

HSBC Holdings
Citigroup 
Banco Bilbao Vizcaya Argentaria

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 94% of the 1,225 members who have rated Santander believe the stock will outperform the S&P 500 going forward.

Earlier this week, one of those bulls, CallaHummel, tapped the stock as a rather bankable bargain opportunity:

As both a bank and a Spanish company, Banco Santander is in doubly risky territory. Unlike most banks and most Spanish companies, however, Santander is internationally diversified with a small percentage of its business in Spain, conservative in taking on new customers, and quick to both comply with regulations and make adjustments for future losses. Santander is a bet on Europe, Latin America, and an eventual banking recovery with less of the scandal risk that has plagued the sector. Plus, collect [a 9% dividend yield] while you wait for that recovery.

If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong four-star rating, Santander may not be your top choice.

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Read/Post Comments (5) | Recommend This Article (7)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On February 20, 2013, at 7:18 PM, vaderblue wrote:

    Banc Santander =Great Dividend, Internationaly diversified. Large Market Cap,

    I am long on SAN The best sticks are the ones u believe in.

    It's not always about fundementals but global exposure and growth.

  • Report this Comment On February 20, 2013, at 11:13 PM, gcialini wrote:

    Bla, bla, bla......everytime I read another positive story about SAN (or any other stock for that matter)....it gets hammered.....I know I got in a little high...but my SAN position is getting clocked the last few weeks....being new to investing....I guess I'd better learn about options. Any suggestions to a newbee.....

  • Report this Comment On February 22, 2013, at 10:14 AM, dragonshon wrote:

    Something simple with Options would be to buy (Buy to Open) the Jan 2015 $15 Call for 10 cents or less at about 50 contracts or less, so that you are only putting $500 (+ commission/fees) at risk. This way, you KNOW that the most you can lose is $500 (+ commission/fees). And, for example, if in a little less than 2 years, the underlying stock is at $15.01, your $500 (+ commission/fees) should technically be worth ~$37,000 at this morning's stock price of ~$7.61.

    Just make sure you fully understand at least the basics before you make any Options transactions...

    DISCLAIMER: I am long SAN, Jan 2014 $15 Call, and Jan 2015 $15 Call if it gets to my bid price today.

    T3

  • Report this Comment On February 22, 2013, at 10:28 AM, dragonshon wrote:

    Also, gcialini, since you already own shares of SAN, sell/"write" (Sell to Open) Call Options to get even more income on top of the dividend you will accrue. The dividend is good and seems a bit high, but I believe it is sustainable. I don't know how much you bought your SAN stock holding at but my preference would be to aim for a 6-10% total return/profit per 4-9-month stretch. That's my personal preference; you pick what works/matters to you. Now granted, I'm not any expert at Options, but I just share what I know and learn and what works.

    Wish you wealth & health.

    T3

    P.S.: ALWAYS use Limit Orders for all transactions--Options or Stocks.

  • Report this Comment On March 05, 2013, at 1:10 PM, cbeb9 wrote:

    To "Bla, bla, bla"... If you're new to investing, as you mention, I'd advise you to stay away from options. That's for much more seasoned investors.

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