I am going to start adding 2 foreign banks into my portfolio. They are ADR stocks traded in the NYSE.
Banco Santander and Banco Bilbao have fallen a great deal from their peak a few months ago due to the debt crisis in the EURO zone. Domestic troubles in Spain have allowed these 2 stocks to dip more than 35% from their high.
These 2 banks have very good fundamentals. They are trading at 9.68X P/E of their latest earnings, while stocks like JPMorgan are trading at 19X.
They are trading at only 7.6X forward P/E. These stocks are trading at a steep discount compared to their peers in the US. They are offering the highest dividend yield of 6.5% compared to US banks that are offering 2% dividend or less.
BUY STD at $13.
BUY BBVA at $13.2
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