The financial sector is made up of companies that offer services including loans, savings, insurance, payment services, and money management for individuals and businesses. Financial sector stocks include a wide range of companies involved in retail and commercial banking, accounting, insurance, asset management, credit cards, and brokerage. Well-known companies in the industry include Wells Fargo Co. (WFC), Goldman Sachs Group Inc. (GS) and Morgan Stanley (MS).
Financial stocks, represented by Financial Select Sector SPDR ETF (XLF), have outperformed the overall market, with a total return of 52.5% compared to Russell 1000’s total return of 38.1% over the past 12 months . These performance figures and all statistics in the tables below are as of July 16, 2021.
Here are the top 3 financial stocks with the best value, the fastest growth, and the most momentum.
These are the financial stocks with the lowest price-to-earnings (P / E) ratio in the last 12 months. Because profits can be returned to shareholders in the form of dividends and buybacks, a low P / E ratio shows that you are paying less for every dollar of profit generated.
|Best value financial stocks|
|Price ($)||Market Cap ($ B)||Final 12-month P / E ratio|
|Rocket Companies Inc. (RKT)||17.35||34.5||3.9|
|Athene Holding Ltd. (ATH)||62.44||12.0||4.0|
|Old Republic International Corp. (ORI)||24.26||7.4||4.3|
- Rocket Companies Inc .: Rocket Companies helps consumers obtain mortgages, personal and auto loans, and other financial services. Its flagship business is Rocket Mortgage, an online mortgage application tool.
- Athene Holding Ltd .: Athene Holding is an insurance holding company that offers issuance, reinsurance and other related services worldwide with retirement savings products. The company announced on July 15 that it would acquire Foundation Home Loans, a UK-based mortgage lender with a portfolio of £ 3 billion ($ 4.1 billion) of owner-occupied and purchase mortgages for rent on your balance sheet. Terms of the deal were not disclosed.
- Old Republic International Corp .: Old Republic International is an insurance holding company. Through subsidiaries, it markets, underwrites and provides risk management services for property and liability, title, life, health and other insurance.
These are the top financial stocks ranked by a growth model that rates companies based on a 50/50 weighting of their most recent quarterly year-over-year percentage income growth and their most recent quarterly earnings per share (EPS) growth. Both sales and profits are critical factors for the success of a business. Therefore, ranking companies by a single growth metric makes a ranking susceptible to accounting anomalies from that quarter (such as changes in tax law or restructuring costs) that can make one or the other figure unrepresentative. of the business in general. Companies with quarterly EPS or revenue growth greater than 2,500% were excluded as outliers.
|Fastest growing financial stocks|
|Price ($)||Market Cap ($ B)||EPS growth (%)||Revenue growth (%)|
|Everest Re Group Ltd. (RE)||246.78||9.9||1,980||38.4 *|
|Jefferies Financial Group (JEF)||33.37||8.2||712.5||57.3|
|Fifth Third Bancorp (FITB)||36.40||25.6||2,220||0.5|
Source: Except for Everest Re Group revenue *, all data above is from YCharts
- Everest Re Group Ltd .: Everest Re Group is a reinsurance provider. The company offers reinsurance to property and casualty insurers and policyholders in the US and internationally. The company’s net income soared as total revenue increased 38.4% due to strong growth in written premiums in the first quarter of fiscal 2021, which ended March 31.
- Jefferies Financial Group: Jefferies Financial Group is a diversified financial services company operating globally. The company offers investment banking, capital markets, direct investment and asset management services. On July 14, Jefferies announced a strategic alliance with Sumitomo Mitsui Financial Group, Inc. (SMFG), Sumitomo Mitsui Banking Corp. and SMBC Nikko Securities Inc. in corporate and investment banking. The partnership will focus on expanding offerings. existing in areas including: the leveraged financial business of companies in the United States; develop cross-border M&A opportunities involving Japanese companies; and seeking investment banking and financing opportunities in the US healthcare sector.
- Fifth Third Bancorp: Fifth Third Bancorp is a banking and financial holding company serving commercial and individual clients primarily in the Midwest and Southeastern United States. The company offers deposit accounts, loans, and a wealth and asset management service.
These are the financial stocks that had the highest total return over the past 12 months.
|Financial stocks with greater momentum|
|Price ($)||Market Cap ($ B)||Total return at 12 months (%)|
|SLM Corp. (SLM)||19.95||6.3||187.4|
|OneMain Holdings Inc. (OMF)||59.34||8.0||185.0|
|Western Alliance Bancorp (WAL)||94.36||9.8||162.3|
|Russell 1000||N / A||N / A||38.1|
|Financial Select Sector SPDR ETF (XLF)||N / A||N / A||52.5|
- SLM Corp .: SLM Corp. is a privately held student loan and education finance company better known as Sallie Mae. Through subsidiaries, SLM provides debt management, commercial and technical products, and other services to colleges, universities, and loan guarantors.
- OneMain Holdings Inc .: OneMain Holdings is a holding company that, through subsidiaries, offers personal and auto loan products. The company conducts business throughout the United States.
- Western Alliance Bancorp: Western Alliance Bancorp is a multi-bank holding company. The company’s subsidiaries provide banking and financial services to clients in Nevada, California, and Arizona. For the second quarter of 2021, net income increased nearly 140% year-over-year on net income gains of 58.4% year-over-year. Performance was driven by growth in loans and deposits.
The comments, opinions and analysis expressed in this document are for informational purposes only and should not be considered individual investment advice or recommendations to invest in any security or adopt an investment strategy. While we believe that the information provided in this document is reliable, we do not guarantee its accuracy or completeness. The opinions and strategies described in our content may not be suitable for all investors. Because market and economic conditions are subject to rapid change, all comments, opinions and analysis included in our content are presented on the date of publication and may change without notice. The material is not intended to be a complete analysis of all material facts relating to any country, region, market, industry, investment, or strategy.
Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reports, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow to produce accurate and unbiased content at our
YCharts. “Financial data. “Accessed July 19, 2021.
Athene Holding Ltd. “Athene will acquire mortgage loans from the foundation. “Accessed July 19, 2021.
Everest Re Group. “Everest Re Group Reports First Quarter 2021 Results, “Page 1, 7. Accessed July 19, 2021.
Jefferies Financial Group. “Jefferies and SMBC Group Announce Strategic Alliance to Drive Growth. “Accessed July 19, 2021.
Western Alliance Bancorp “.Western Alliance Bancorporation Reports Second Quarter 2021 Financial Results, “Page 1. Accessed July 19, 2021.