Markets have proved to be resilient despite the backdrop of the conflict in the Middle East. The churning of sectors earlier this year has led to some bargains and momentum in stocks. One name I like is Banco Santander SA (SAN), advises Carl Delfeld, editor of Cabot Explorer.
Attractive groups include semiconductors and minerals and mining. That has been paired with consumer and energy prices climbing steeply. Meanwhile, recent big bank earnings have been solid and volatile markets are good news to bank trading desks.
I’m watching the international bank HSBC Holdings Plc (HSBC), which is expanding its focus on Hong Kong. The stock is showing good momentum and benefiting from a surging IPO market and managing emerging wealth. The bank is also quite strong in both Southeast Asia and the Middle East.
Banco Santander (SAN)
As for SAN, its shares were up 2.3% in a recent week. While it’s only up modestly so far in 2026, it has surged 88% over the last year.
Santander stock still trades at a price-to-earnings ratio of about 10, with a price-to-book of 1.5. It is one of the best banks in Europe and has a high-growth digital footprint in the US.
Recommended Action: Buy SAN.
