We recently compiled a list of the 8 Most Profitable Bank Stocks To Buy According to Analysts.In this article, we are going to take a look at where Shinhan Financial Group Co., Ltd. (NYSE:SHG) stands against the other AI stocks investors shouldn't miss.

The US Banking Industry: Expectations from the New Admin

Financials is one of the sectors being deemed as winner post Trump’s victory with investors betting on looser regulation and higher M&A activity. Goldman Sachs CEO David Solomon pointed to the optimism in the environment, saying:

"There has been a meaningful shift in CEO confidence, particularly following the results of the US election"

Yahoo reported that Gabelli Funds portfolio manager Mac Sykes thinks that the deregulation will benefit the banks and that he forecasts lighter oversight of the banking market as a catalyst for the group.

While many are looking forward to the possibility of finally being able to make acquisitions in the financial space under the new US admin, UBS CEO Sergio Ermotti joined CNBC and stated that he doesn’t think there is going to be a lot of deregulation. Rather, he sees a rationalization of the existing banking regulation, which he thinks is appropriate for big banks that shouldn’t be ‘massively deregulated’. Simultaneously, he sees consolidation allowed in the US among second-tier banks.

At the same time, Bank of New York Mellon CEO Robin Vince is more optimistic about Trump's return to the White House in terms of the impact on the financial sector. As he joined Yahoo Finance at the 2025 World Economic Forum, he was not that concerned regarding the risks tied to potential loose regulation. He stated:

"To see a government that's really focused on growth and being able to make the economy everything that it can be, because ultimately, as one of America's leading banks, we are focused on helping our customers to be able to grow and thrive. You know, that's what our platforms are all about"

Our Methodology:

In order to compile a list of the 8 most profitable bank stocks to buy according to analysts, we used stock screeners to shortlist bank stocks with over $1 billion TTM net income. Moving on, we shortlisted the top 8 stocks from our list which had the highest average upside potential, as of February 3. The 8 most profitable bank stocks to buy according to analysts have been arranged in ascending order of their average upside potentials.

At Insider Monkey we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).

Story Continues

Is Shinhan Financial Group Co., Ltd. (SHG) The Most Undervalued Bank Stock To Invest In According To Analysts?

A customer using an automatic teller machine with a credit card.

Shinhan Financial Group Co., Ltd. (NYSE:SHG)

Average Upside Potential:48.04%

TTM Net Income: $3.337 Billion

Shinhan Financial Group Co., Ltd. (NYSE:SHG) is a financial holding company that originated from Shinhan Bank, which came into being in 1982 and was the first private bank in Korea. SHG serves as a Korean finance pioneer.

Shinhan Bank positioned itself as a blue-chip bank by developing a nationwide network and going public with an IPO. It took the initiative to set up a financial holding company that would enable it to grow its scale across multiple sectors as a comprehensive financial group. Shinhan Financial Group is currently one of the leading Korean financial leaders, leading the way in innovation. A customer-centered business has made the company what it is today, driving its sustainable growth.

Regarding Shinhan Financial Group Co., Ltd. (NYSE:SHG), Polaris Global Equity Strategy stated the following in its Q3 2024 investor letter:

"On the backdrop of interest rate cuts, financials shined on expectations for loan demand and cheaper cost of capital; in fact, all sector holdings were in absolute positive territory. Shinhan Financial Group Co., Ltd. (NYSE:SHG) was the top contributor, with a second quarter earnings beat on better non-interest income with credit costs under control. An enhanced shareholder return policy was a pleasant upside surprise, as Shinhan committed to returning 50% of earnings to investors through dividends and share buybacks by 2027."

Overall SHG ranks 1st on our list of the most profitable bank stocks to buy according to analysts. While we acknowledge the potential of SHG as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for a deeply undervalued AI stock that is more promising than SHG but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.

Disclosure: None. This article was originally published at Insider Monkey.

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