As with any other investment, it is useful to analyse a company’s strengths and weaknesses when wanting to invest, either directly by buying securities, or through online trading and financial product investments. The company’s future evolution and growth strategy are key points, likely to raise the price of its shares.
The benefits and strengths of Santander
Santander banking group is one of the world's leading international financial companies and presents solid results from a financial point of view. In addition, it enjoys a strong global reputation and a rather positive brand image (rare for a company within the banking sector), which reassures investors.
The Santander Group is well-balanced geographically, with a strong presence in Europe, strong growth in the United States and Brazil, and a strong presence in South America.
Nevertheless, it is advisable to remain cautious because depiste results increase of 2015 and 2016, 2017 objectives were not exactly met, and the group’s business shows signs of a worrying slowdown. Santander also heavily depends on the political decisions taken by the Euro zone. The lack of business on the Asian continent is also regrettable.
Finally, like all European banks, the Santander Group is subject to European restrictions and rules on the financial management of assets. It must therefore reduce its debt to reassure its shareholders and investors.
In view of these different elements, it appears appropriate to take medium-term positions on this asset. To complete this first level of analysis, it may be interesting to carry out a fundamental investigation into Santander shares before deciding to invest or not.
Santander does not lack opportunities to seize in the relative short term: the development of microfinance services and its presence with small businesses, as well as all buyback operations or joint ventures. Acquisition of companies headquartered abroad is particularly interesting. And of course, the banking activity is closely linked to global economic growth.
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Before investing in Santander assets, it is therefore important to pay close attention to news and all the financial and economic data of the Euro zone as well as the countries in which Santander operates. A comprehensive study of the competition is also essential. The evolution of interest rates in the Eurozone remains a major threat that needs to be carefully monitored, especially via online brokers’ economic calendar.
Reasons for investing
Knowing the strengths and weaknesses of the Santander banking group, it is easier to carry out a fundamental analysis and be able to develop a coherent investment strategy. Many tools are available on online broker sites to make the best choice and anticipate trends with strategies in the short, medium or long term. Santander shares seem to have a strong potential that will therefore need to be strategically acknowledged at the time of trading.
Whether for Santander shares or others, it is always essential to learn about the economic and financial health of the group, to consider developments both in the short term and in the future, to do substantial preparatory work so as not to be surprised by the movements in shares and to remain aware of possible disruptive events.
