Top Financial Stocks for the Week

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The financial sector is made up of companies that operate in the various offerings within the finance industry–encompassing everything from insurance and money management to payments and digital banking technology. This sector includes some of the world’s most well-known and largest companies, such as Square, Morgan Stanley, American Express, and Bank of America. 

Stocks in the tech sector, which are holistically represented by the Fidelity® MSCI Financials ETF (FNCL), have broadly outperformed the market as FNCL has provided investors with a return of 52.88% over the past 12 months, above the S&P 500’s total returns of 32.84%. 

Here are the top technology stocks with the highest growth, greatest value, strongest momentum, and most searches on Google.

Best Value Financial Stock: Capital One Financial (COF)

Capital One is a diversified financial services holding company headquartered in McLean, Virginia. Originally a spin-off of Signet Financial’s credit card division in 1994, the company is now primarily involved in credit card lending, auto loans, and commercial lending. With a current price-to-earnings ratio of 6.49, Capital One Financial benefits from the growing economy due to higher yield rates. Recently, Capital One Financial has bumped up its quarterly dividend by 50%, a positive sign for investors and the company.

Best Growth Financial Stock: Truist Financial Corporation (TFC)

Based in Charlotte, North Carolina, Truist is the combination of BB&T and SunTrust. Truist is a regional bank with a presence primarily in the Southeastern United States. In addition to commercial banking, retail banking, and investment banking operations, the company operates several nonbank segments, the primary one being its insurance brokerage business. This past quarter, Truist Financial posted a 73.5% growth in earnings, as well as 21% revenue growth, displaying a much higher growth rate than its competitors. Recently, Truist generated strong overall earnings in the second quarter that showed some positives and some negatives, as loan growth continued to prove elusive and fee income came in strong. 

Financial Stock With the Most Momentum: Upstart Holdings (UPST)

Upstart Holdings Inc provides credit services. The company provides a proprietary, cloud-based, artificial intelligence lending platform. The platform aggregates consumer demand for loans and connects it to the network of Upstart AI-enabled bank partners. The revenue of the company is primarily comprised of fees paid by banks. With a whopping 52 week price range from 22.61 – 191.89 and current price of 132.96, Upstart Holdings has shown a jump in share price that very few companies have experienced. The company projects full-year 2021 revenue of $600 million, and if it delivers, it would represent over 1,000% growth since 2017 — much of which has occurred in the last year.

Most Trending Tech Stock: Berkshire Hathaway Inc. (BRK-B)

Berkshire Hathaway Inc is a holding company with a wide array of subsidiaries engaged in diverse activities. The firm’s core business segment is insurance, run primarily through Geico, Berkshire Hathaway Reinsurance Group and Berkshire Hathaway Primary Group. Currently top 10 in the most trending tickers, Berkshire Hathaway occupies an abundance of Benzinga’s search increment due to its jump in operating earnings along with announced stock buybacks. Led by Warren Buffet, Berkshire Hathaway will continue to be a leading holding company around the world.

Best Online Stock Brokers

If you’re wondering how to take the next step and invest, here are some of the best stock brokers to get started.

Stock Pick Methodology

To create a specific set of companies and their respective stocks that fall under a certain criteria, we utilized a screener to examine the top stocks under each criteria. For value companies, we analyzed the companies with the lowest forward P/E, current P/E, and P/E/G multiples; for growth companies, we analyzed high earnings and revenue growth – weighing them equally; for momentum, we looked at price growth in the past 52 weeks; for trending tech, we examined the stocks with the highest percent of search increment on Benzinga.

Sources

Company descriptions: Factset

Screeners: Benzinga Pro

The post Top Financial Stocks for the Week by Ryan Peterson appeared first on Benzinga. Visit Benzinga to get more great content like this.