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($$$MR. MARKET$$$ is a proprietary investor and does not provide individual financial advice. The stocks mentioned on this forum do not represent individual buy or sell recommendations and should not be viewed as such. Individual investors should consider speaking with a professional investment adviser before making any investment decisions.)
I know it’s been a while since we came up with a stock pick, but in recent months there has been a confluence of factors that have made the market vulnerable. However, it looks like a rate cut is imminent and a big China tariff is being delayed, so it’s likely we can squeeze in a few stock picks before any further turmoil kills momentum.
So…having said that, let’s go! Today I bought stock in Santander (SAN) at 9.675. I will sell it in 4 to 6 weeks at 11.18. Here’s why I like SAN:
[img[https://api.wsj.net/api/kaavio/charts/big.chart?nosettings=1&symb=SAN[/img]
Take a look at this awesome chart. This stock is up 120% over the last 12 months and yet it’s PE is only 10. This is a big bank, with a market cap of 140 billion. With its robust balance sheet, it’s not going anywhere….and it pays a 2.4% dividend.
What’s so great about this stock pick? First of all, lest you forget, I'm $$$MR.MARKET$$$ and I am HUGE. Of my last 29 trades, 23 of them have outperformed the S&P 500. I've been around since the dawn of time, picking winners and flossing my teeth with a railroad spike. And let me tell you, my latest and greatest stock pick is a real winner: Banco Santander (SAN).
My stock-picking skills are so legendary, they make Warren Buffett look like a kid with a piggy bank. People take my stock picks and build solid gold statues of me and put them in their office. My analysis is sharper than a samurai sword, and my insights are more powerful than a freight train powered by pure awesome.
Getting back on track, I've been watching SAN and it's not like those other boring banks. It's a "glocal" bank, meaning it's a global powerhouse with local street smarts. It's got more customers than Carters has pills—over 160 million, to be exact—and it's a leader in both Europe and Latin America. Its home is in Madrid, but it dominates markets in places like Brazil and Mexico, where it's just printing money.
Banco Santander, S.A. provides various financial products and services to individuals, small and medium-sized enterprises, large corporations, and public entities worldwide. The company operates through five segments: Retail & Commercial Banking, Digital Consumer Bank, Corporate & Investment Banking, Wealth Management & Insurance, and Payments. It offers demand and time deposits, mutual funds, and current and savings accounts; mortgages, consumer finance, loans, and various financing solutions; and project finance, debt capital markets, global transaction banking, and corporate finance services. Banco Santander, S.A. was incorporated in 1856 -old as dirt.
This bank is so diversified, it's like a Swiss Army knife. It's got leading operations in Europe, which gives it stability, and it's got a strong presence in Latin America, which gives it explosive growth. It's the best of both worlds. This diversification helps to mitigate risk and provides a stable foundation for growth. The company's unique combination of scale and diversification is cited as a key factor in its ability to deliver profitable and sustainable growth.
Remember, it’s all about earnings and SAN's Numbers are as Solid as My Abs. In Q1 2025, it reported a profit of €3.4 billion, which is a whopping 19.3% increase from last year. Its balance sheet is so strong, it could bench press almost as much as $$$MR. MARKET$$$, with a Common Equity Tier 1 ratio (a crucial measure of a bank's financial health and stability) of 12.9%. Under Basel III standards, the minimum CET1 ratio is 4.5%, with a conservation buffer bringing the effective minimum to 7%. A 12.9% ratio is well above these minimums, showcasing a bank's capacity to absorb unexpected losses and maintain stability.
And get this—while other banks are struggling, SAN's asset quality is improving. Its late payment rate fell to 2.99%, and its efficiency ratio is a lean, mean 41.6%. While the business is humming, I really love the value proposition here. The rest of the market is, frankly, clueless. They're applying a low multiple to SAN, with a P/E (FWD) of 10x and a PEG of 1.02x. This is a massive discount compared to the rest of the sector. All of this value while it bangs out a 12.9% Return on Equity! The market is like a blindfolded monkey throwing darts at a dartboard, but $$$MR. MARKET$$$ is throwing a bull's-eye with SAN. While the market is selling this stock on the cheap, I'm here to scoop it up. Seriously, it’s an incredible opportunity to buy a solid bank at a huge discount.
Boiling it down…here’s what there is to like:
Strong Profitability and Earnings Growth: Santander has been reporting strong financial performance. In the first half of 2025, the company achieved a record profit of €6.83 billion, an increase of 13% year-over-year. This was driven by a robust net interest income and a record net fee income. The bank's earnings per share (EPS) also saw a significant jump, rising by 19% in the first half of the year.
Improved Efficiency: Santander's focus on operational transformation has led to improved efficiency. The bank's efficiency ratio reached its best level in over 15 years at 41.5%. This is a positive sign, as it indicates the company is effectively managing its costs and generating more profit from its revenue.
Attractive Shareholder Remuneration: The company has a strong commitment to returning capital to shareholders. Santander's board intends to apply a shareholder remuneration policy that will distribute approximately 50% of its reported profit, split evenly between cash dividends and share buybacks. They have also announced a goal to allocate at least €10 billion to share buybacks from 2025 and 2026 earnings and excess capital. The company has a history of consistently increasing its dividend for several years.
The P/E ratio for the S&P 500, a benchmark for the U.S. market, has been significantly higher, with a recent ratio of around 29.46. This highlights the substantial difference in valuation between the banking sector and the broader market. Even a slight multiple expansion for banking will propel the stock price of SAN.
Here’s what their boss had to say:
Ana Bot?n, Banco Santander executive chair, said:
“Once again, we are delivering improving profitability and growth, adding eight million customers in the past year, resulting in a fifth consecutive quarter of record profit with RoTE reaching 16% and earnings per share up 19%. We are making excellent progress in executing our strategy with the deployment of shared global platforms, improving customer service and reducing the cost-to-serve. And we see considerable opportunities to continue creating value by leveraging our economies of scale in this way. Amidst continuing geopolitical uncertainty, we are on track to meet all our targets for the year and remain confident that our track record of delivery plus the value of our diversification across both businesses and markets will allow us to outperform our peers in value creation.”
I’m all in on SAN and I’m ready to “bank” on it. I am HUGE!
$$$MR. MARKET$$$
www.mrmarketishuge.com
I know it’s been a while since we came up with a stock pick, but in recent months there has been a confluence of factors that have made the market vulnerable. However, it looks like a rate cut is imminent and a big China tariff is being delayed, so it’s likely we can squeeze in a few stock picks before any further turmoil kills momentum.
So…having said that, let’s go! Today I bought stock in Santander (SAN) at 9.675. I will sell it in 4 to 6 weeks at 11.18. Here’s why I like SAN:
[img[https://api.wsj.net/api/kaavio/charts/big.chart?nosettings=1&symb=SAN[/img]
Take a look at this awesome chart. This stock is up 120% over the last 12 months and yet it’s PE is only 10. This is a big bank, with a market cap of 140 billion. With its robust balance sheet, it’s not going anywhere….and it pays a 2.4% dividend.
What’s so great about this stock pick? First of all, lest you forget, I'm $$$MR.MARKET$$$ and I am HUGE. Of my last 29 trades, 23 of them have outperformed the S&P 500. I've been around since the dawn of time, picking winners and flossing my teeth with a railroad spike. And let me tell you, my latest and greatest stock pick is a real winner: Banco Santander (SAN).
My stock-picking skills are so legendary, they make Warren Buffett look like a kid with a piggy bank. People take my stock picks and build solid gold statues of me and put them in their office. My analysis is sharper than a samurai sword, and my insights are more powerful than a freight train powered by pure awesome.
Getting back on track, I've been watching SAN and it's not like those other boring banks. It's a "glocal" bank, meaning it's a global powerhouse with local street smarts. It's got more customers than Carters has pills—over 160 million, to be exact—and it's a leader in both Europe and Latin America. Its home is in Madrid, but it dominates markets in places like Brazil and Mexico, where it's just printing money.
Banco Santander, S.A. provides various financial products and services to individuals, small and medium-sized enterprises, large corporations, and public entities worldwide. The company operates through five segments: Retail & Commercial Banking, Digital Consumer Bank, Corporate & Investment Banking, Wealth Management & Insurance, and Payments. It offers demand and time deposits, mutual funds, and current and savings accounts; mortgages, consumer finance, loans, and various financing solutions; and project finance, debt capital markets, global transaction banking, and corporate finance services. Banco Santander, S.A. was incorporated in 1856 -old as dirt.
This bank is so diversified, it's like a Swiss Army knife. It's got leading operations in Europe, which gives it stability, and it's got a strong presence in Latin America, which gives it explosive growth. It's the best of both worlds. This diversification helps to mitigate risk and provides a stable foundation for growth. The company's unique combination of scale and diversification is cited as a key factor in its ability to deliver profitable and sustainable growth.
Remember, it’s all about earnings and SAN's Numbers are as Solid as My Abs. In Q1 2025, it reported a profit of €3.4 billion, which is a whopping 19.3% increase from last year. Its balance sheet is so strong, it could bench press almost as much as $$$MR. MARKET$$$, with a Common Equity Tier 1 ratio (a crucial measure of a bank's financial health and stability) of 12.9%. Under Basel III standards, the minimum CET1 ratio is 4.5%, with a conservation buffer bringing the effective minimum to 7%. A 12.9% ratio is well above these minimums, showcasing a bank's capacity to absorb unexpected losses and maintain stability.
And get this—while other banks are struggling, SAN's asset quality is improving. Its late payment rate fell to 2.99%, and its efficiency ratio is a lean, mean 41.6%. While the business is humming, I really love the value proposition here. The rest of the market is, frankly, clueless. They're applying a low multiple to SAN, with a P/E (FWD) of 10x and a PEG of 1.02x. This is a massive discount compared to the rest of the sector. All of this value while it bangs out a 12.9% Return on Equity! The market is like a blindfolded monkey throwing darts at a dartboard, but $$$MR. MARKET$$$ is throwing a bull's-eye with SAN. While the market is selling this stock on the cheap, I'm here to scoop it up. Seriously, it’s an incredible opportunity to buy a solid bank at a huge discount.
Boiling it down…here’s what there is to like:
Strong Profitability and Earnings Growth: Santander has been reporting strong financial performance. In the first half of 2025, the company achieved a record profit of €6.83 billion, an increase of 13% year-over-year. This was driven by a robust net interest income and a record net fee income. The bank's earnings per share (EPS) also saw a significant jump, rising by 19% in the first half of the year.
Improved Efficiency: Santander's focus on operational transformation has led to improved efficiency. The bank's efficiency ratio reached its best level in over 15 years at 41.5%. This is a positive sign, as it indicates the company is effectively managing its costs and generating more profit from its revenue.
Attractive Shareholder Remuneration: The company has a strong commitment to returning capital to shareholders. Santander's board intends to apply a shareholder remuneration policy that will distribute approximately 50% of its reported profit, split evenly between cash dividends and share buybacks. They have also announced a goal to allocate at least €10 billion to share buybacks from 2025 and 2026 earnings and excess capital. The company has a history of consistently increasing its dividend for several years.
The P/E ratio for the S&P 500, a benchmark for the U.S. market, has been significantly higher, with a recent ratio of around 29.46. This highlights the substantial difference in valuation between the banking sector and the broader market. Even a slight multiple expansion for banking will propel the stock price of SAN.
Here’s what their boss had to say:
Ana Bot?n, Banco Santander executive chair, said:
“Once again, we are delivering improving profitability and growth, adding eight million customers in the past year, resulting in a fifth consecutive quarter of record profit with RoTE reaching 16% and earnings per share up 19%. We are making excellent progress in executing our strategy with the deployment of shared global platforms, improving customer service and reducing the cost-to-serve. And we see considerable opportunities to continue creating value by leveraging our economies of scale in this way. Amidst continuing geopolitical uncertainty, we are on track to meet all our targets for the year and remain confident that our track record of delivery plus the value of our diversification across both businesses and markets will allow us to outperform our peers in value creation.”
I’m all in on SAN and I’m ready to “bank” on it. I am HUGE!
$$$MR. MARKET$$$
www.mrmarketishuge.com
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