Grupo Financiero Galicia ADR (GGAL) fell 7.3% through 11:40 a.m. ET as Latin American stocks sold off. The likely trigger was Brazil's presidential run-off, where incumbent Luiz Inácio Lula da Silva appears to have beaten Flávio Bolsonaro 51.8% to 48.2%, a result many investors had not expected. Bolsonaro has refused to concede, alleging the government suppressed votes in districts that lean toward him, while Argentine President Javier Milei, per Bloomberg, is the only South American leader not to recognize the result. The article argues the stock is largely insulated from Brazil, since S&P Global Market Intelligence data show 99.9% of its revenue comes from Argentina. It also notes the stock trades at 7.5 times current-year earnings estimates and is expected to double earnings per share over the next two years, and suggests the sell-off may be a good time for investors to act.
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