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The financial sector is comprised of companies that offer services including loans, savings, insurance, payment services, and money management for individuals and firms. 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 sector include Wells Fargo Co. (WFC), Goldman Sachs Group Inc. (GS), and Morgan Stanley (MS).
Financial stocks, as represented by the Financial Select Sector SPDR ETF (XLF), have outperformed the broader market, with a total return of 52.6% compared to the Russell 1000’s total return of 39.9% over the past 12 months. These performance numbers and all statistics in the tables below are as of June 17, 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 12-month trailing price-to-earnings (P/E) ratio. Because profits can be returned to shareholders in the form of dividends and buybacks, a low P/E ratio shows you’re paying less for each dollar of profit generated.
Source: YCharts
- Athene Holding Ltd.: Athene Holding is an insurance holding company that provides issuance, reinsurance, and other services globally related to retirement savings products. The company announced on June 2 that it had declared preferred stock dividends on its non-cumulative preference shares, payable on June 30 to shareholders as of June 15.
- Rocket Companies Inc.: Rocket Companies helps consumers to obtain mortgages, personal and car loans, as well as other financial services. Its flagship business is Rocket Mortgage, an online mortgage application tool.
- White Mountains Insurance Group Ltd.: White Mountains Insurance Group is an insurance service provider. The company offers property and casualty insurance as well as reinsurance products to customers in the U.S. and Bermuda.
These are the top financial stocks as ranked by a growth model that scores companies based on a 50/50 weighting of their most recent quarterly YOY percentage revenue growth and their most recent quarterly YOY earnings-per-share (EPS) growth. Both sales and earnings are critical factors in the success of a company. Therefore ranking companies by only one growth metric makes a ranking susceptible to the accounting anomalies of that quarter (such as changes in tax law or restructuring costs) that may make one or the other figure unrepresentative of the business in general. Companies with quarterly EPS or revenue growth of over 2,500% were excluded as outliers.
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 U.S. and internationally. The company’s net income soared as total revenue jumped 38.4% on strong growth of written premiums in Q1 FY 2021, ending March 31.
- Goldman Sachs Group Inc.: Goldman Sachs is a bank holding company involved in global investment banking, trading, investment management, and consumer banking operations.
- Fifth Third Bancorp: Fifth Third Bancorp is a bank and financial holding company serving commercial and individual customers primarily in the Midwest and Southeastern U.S. The company offers deposit accounts, loans, and a wealth and asset management service. On June 15, Fifth Third announced the declaration of a cash dividend of $0.27 per common share for Q2 2021. The dividend is payable on July 15 to shareholders of record as of June 30, 2021. Additionally, the company announced dividends on several classes of preferred shares.
These are the financial stocks that had the highest total return over the last 12 months.
| Financial Stocks with the Most Momentum | |||
|---|---|---|---|
| Price ($) | Market Cap ($B) | 12-Month Trailing Total Return (%) | |
| Invesco Ltd. ( IVZ) |
27.21 | 12.6 | 151.9 |
| OneMain Holdings Inc. ( OMF) |
58.45 | 7.9 | 165.6 |
| Ally Financial Inc. ( ALLY) |
50.29 | 18.6 | 156.7 |
| Russell 1000 | N/A | N/A | 39.9 |
| Financial Select Sector SPDR ETF (XLF) | N/A | N/A | 52.6 |
Source: YCharts
- Invesco Ltd.: Invesco is an investment management services provider. The company offers products including exchange-traded funds and mutual funds, as well as equity and fixed income products and services.
- OneMain Holdings Inc.: OneMain Holdings is a holding company which, through subsidiaries, offers personal and auto loan products. The company conducts business throughout the U.S.
- Ally Financial Inc.: Ally Financial is a financial holding company that offers a wide range of digital financial services and insurance products to automotive dealerships and consumers.
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