Validea's Top Financial Stocks Based On Warren Buffett - 10/6/2024
Top Rated Financial Stock: Banco Macro SA (ADR) is highlighted as a strong investment according to Validea's Patient Investor model based on Warren Buffett's strategy, achieving a rating of 79% due to its long-term profitability and reasonable valuation.
Company Overview: Banco Macro SA is an Argentina-based bank providing various financial services, including traditional banking products and tax management solutions, while also engaging in acquisitions as part of the privatization of provincial banks.
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Nu Holdings Stock Performance: Nu Holdings closed at $15.86, down 2.10%, with trading volume significantly above its three-month average, reflecting investor concerns about sustaining profitability gains amid mixed institutional ownership signals.
Market Context: The S&P 500 and Nasdaq Composite also experienced declines, indicating a broader downturn in the market, particularly affecting Latin American financial stocks like Banco Macro and Grupo Financiero Galicia.
Institutional Ownership Changes: Recent 13F filings showed contrasting actions from asset managers regarding Nu Holdings, with Assenagon Asset Management increasing its stake by nearly 92%, while Salem Investment Counselors reduced its position slightly, suggesting differing strategies rather than fundamental concerns.
Investment Insights: The Motley Fool recommends Nu Holdings and highlights the potential benefits of following their stock tips, noting their Stock Advisor's impressive average return compared to the S&P 500.
Financial Loss: Banco Macro SA reported a loss of $24.9 million in its third quarter, equating to a loss of 39 cents per share.
Revenue Performance: The bank's revenue for the period was $1.05 billion, with net revenue of $650.3 million falling short of market expectations.
Stock Decline: Banco Macro's shares have decreased by 15% since the start of the year, closing at $82.21, which is nearly a 2% decline over the past 12 months.
Source of Information: The report was generated by Automated Insights using data from Zacks Investment Research.
- Net Income Decline: Banco Macro's net income for the first nine months of 2025 totaled Ps.176.7 billion, reflecting a 35% year-over-year decrease, indicating significant challenges in profitability amid high inflation, which may undermine investor confidence.
- Operating Income Drop: The bank's operating income for 9M25 was Ps.1.03 trillion, down 64% from the previous year, highlighting difficulties in managing general and administrative expenses, which could impact future profitability.
- Financing and Deposit Growth: In Q3 2025, Banco Macro's total financing increased by 3% quarter-over-quarter to Ps.10.12 trillion and by 69% year-over-year, demonstrating enhanced market financing capabilities despite economic uncertainties.
- Strong Capital Adequacy: As of Q3 2025, Banco Macro maintained a capital adequacy ratio of 29.9%, exceeding regulatory requirements, which reflects its robust capital base and risk management capabilities, helping to ensure stability during economic fluctuations.
Net Income Decline: Banco Macro reported a net income of Ps.176.7 billion for 9M, which is a 35% decrease compared to the same period last year, amounting to Ps.95.2 billion less.
Operating Income Drop: The bank's operating income, after accounting for general and administrative expenses and personnel costs, reached Ps.1.03 trillion, reflecting a significant decline of 64% or Ps.1.84 trillion compared to 9M24.
Financial Performance: Banco Macro reported a net income of Ps.176.7 billion for the first nine months of 2025, a 35% decrease compared to the same period in 2024, with an annualized return on average equity of 4.5% and return on average assets of 1.3%.
Operating Income and Financing: The bank's operating income for 9M25 was Ps.1.03 trillion, down 64% from the previous year, while total financing increased by 3% quarter over quarter and 69% year over year, totaling Ps.10.12 trillion.
Deposits and Solvency: Total deposits rose by 5% QoQ and 11% YoY, reaching Ps.11.81 trillion, with a strong solvency ratio indicated by an excess capital of Ps.3.30 trillion and a capital adequacy ratio of 29.9%.
Customer Base and Non-Performing Loans: Banco Macro serves 6.29 million retail customers and 219,235 corporate customers, with a non-performing to total financing ratio of 3.19% and a coverage ratio of 120.87%.
Earnings Reports Today: Major companies reporting earnings today include Banco Macro SA, Deere, Gaotu Techedu, Ehang Holdings, and Li Auto.
Expected Earnings Moves: TipRanks provides insights into expected earnings moves based on options prices, which many investors monitor before announcements.
Pre-Market Earnings: Companies reporting before market open include Deere (expected move +/- 4.99%), Gaotu Techedu (+/- 21.84%), Ehang Holdings (+/- 8.34%), and Li Auto (+/- 6.99%).
Post-Market Earnings: Banco Macro SA is set to report after market close with an expected move of +/- 13.11%, and caution is advised due to the risks associated with options trading.









