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(0:30) - Screening For Strong Bank Investments That Fit Into Your Portfolio
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(5:50) - Tracey’s Top Stock Picks For Your Watchlist Right Now
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(19:00) - Episode Roundup: BSAC, BSRR, TD, CIB, ISNPY
Tracey ran a Zacks Premium screen looking for high Zacks Rank value stocks with a dividend.
The screen returned 138 stocks, with international banks from Chile, Canada, Colombia and Italy.
Including one American bank, these 5 banks have P/B ratios under 3.0 and are Strong Buys.
Description:
Welcome to Episode #412 of the Value Investor Podcast.
Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio, shares some of her top value investing tips and stock picks.
This week, she ran one of the Zacks Premium screens for value stocks, called “High Rank Value.”
The screen looks for companies with Zacks #1 (Strong Buy) and #2 (Buy) Ranks. Combined, the Strong Buy and Buy stocks total just 882 stocks out of the over 4300 stocks with the Zacks Rank.
It then uses trailing price-to-earnings (P/E) ratio, not forward P/E, of less than 15 to look for value. The screen also uses the price-to-book (P/B) ratio of less than 3.0. A P/B less than 3 usually indicates value.
Also included was a dividend, yielding 2% or more.
This screen produced 138 stocks.
What was in it?
A lot of banks. But not just any banks. Many were international banks from across the globe.
Tracey picked out 5 Zacks #1 Rank (Strong Buy) stocks to feature. 4 are international banks and one is a small US community bank.
5 Strong Buy Bank Stocks in 2025
1. Banco Santander-Chile (BSAC)
Banco Santander-Chile has been in Chile since 1978. It is the largest bank in Chile and is part of Santander Group. Banco Santander-Chile has a market cap of $11 billion.
Shares have been on a tear. Banco Santander-Chile is up 25.6% year-to-date and is trading near a 5-year high it last hit in 2021. It’s a Zacks #1 (Strong Buy).
For banks, analysts look at the price-to-book (P/B) ratio, and so did this screen. Analysts say to buy a bank when the P/B ratio is 1.0 and sell at 2.0. Banco Santander-Chile has a P/B ratio of 2.5 so it’s expensive for a bank.
But investors will get a dividend, yielding 4.2%.
Should value investors consider Banco Santander-Chile, or is it too hot to handle?
2. The Toronto-Dominion Bank (TD)
The Toronto-Dominion Bank is a large cap Canadian bank with a market cap of $126.4 billion. It calls itself one of the top 10 North American banks.
Shares of Toronto-Dominion Bank are up 39% year-to-date and are at 3-year highs. But it’s still attractively priced with a P/B ratio of just 1.56.
Story ContinuesIt’s got the #1 Rank and a dividend yielding 4.2%.
Should value investors put The Toronto-Dominion Bank on their short list?
3. BanColombia (CIB)
BanColombia was founded in 1875 in Colombia. It’s website says it has 146 years supporting the country’s development. BanColombia has a market cap of $10.7 billion.
Shares are up 42.8% year-to-date but it’s still cheap with a P/B ratio of 1.29.
BanColombia pays a dividend, but it appears that it already paid it for 2025. Zacks has it yielding 12.8%. Be sure to confirm the dividend, if you’re looking for income.
It’s a Zacks #1 (Strong Buy).
Should value investors put BanColombia on their short list?
4. Intesa Sanpaolo S.p.A. (ISNPY)
Intesa Sanpaolo is a large Italian bank specializing in retail, corporate and wealth management. It has 2966 branches in Italy, 762 branches in other European countries, 176 branches in Africa and a scattering in Asia, the Middle East and the Americas. Intesa Sanpaolo has a market cap of $100.9 billion.
Shares of Intesa Sanpaolo are up 42% year-to-date and are trading near 5-year highs. Yet, it’s still attractively priced, with a P/B ratio of 1.43.
This Zacks Rank #1 (Strong Buy) is paying a dividend yielding 4.9% on Zacks.com. Please confirm all of these dividend yields with the companies directly.
Should value investors look to Europe, and Intesa Sanpaolo, for opportunities in bank stocks?
5. Sierra Bancorp (BSRR)
Sierra Bancorp is the holding company for the Bank of the Sierra. It was founded in 1977 in the southern San Joaquin Valley and now has 35 locations throughout California. It’s a small bank, with a market cap of $423 million.
Shares are up 8.5% year-to-date and are trading near the 5-year highs. It’s cheap with a P/B ratio of just 1.2.
This Zacks Rank #1 (Strong Buy) also pays a dividend, currently yielding 3.3%.
Should value investors keep an eye out for American small cap banks like Sierra Bancorp?
What Else Should You Know About High Rank Value Stocks?
Tune into this week’s podcast to find out.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Toronto Dominion Bank (The) (TD) : Free Stock Analysis Report
Sierra Bancorp (BSRR) : Free Stock Analysis Report
Banco Santander Chile (BSAC) : Free Stock Analysis Report
BanColombia S.A. (CIB) : Free Stock Analysis Report
Intesa Sanpaolo SpA (ISNPY) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
