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 74.6% compared to the Russell 1000’s total return of 45.6% over the past 12 months. These performance numbers and all statistics in the tables below are as of May 21, 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.
|Best Value Financial Stocks|
|Price ($)||Market Cap ($B)||12-Month Trailing P/E Ratio|
|Rocket Companies Inc. (
|Athene Holding Ltd. (
|Old Republic International Corp. (
- 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. The company reported net income for Q1 2021 that was more than 28 times the figure for Q1 2020, as well as revenue that more than tripled. Performance was driven by the company’s mortgage business, with home loan volumes doubling year-over-year (YOY).
- 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 reported on May 18 that S&P Global Ratings raised its financial strength and issuer credit ratings on its operating insurance entities from “A” to “A+.”
- Old Republic International Corp.: Old Republic International is an insurance holding company that markets, underwrites, and provides risk management services for property and liability, mortgage guaranty, health, life, and other types of insurance. On May 14, Old Republic’s board of directors declared a quarterly cash dividend of 22 cents per common share. The dividend is payable on June 15 to shareholders of record on June 4, 2021.
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.
|Fastest Growing Financial Stocks|
|Price ($)||Market Cap ($B)||EPS Growth (%)||Revenue Growth (%)|
|Everest Re Group Ltd. (
|Goldman Sachs Group Inc. (GS)||366.26||124.4||498.1||102.5|
|Fifth Third Bancorp (
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% in Q1 FY 2021, ending March 31. Everest Re Group’s board of directors on May 13 declared a dividend of $1.55 per share. The dividend is payable on June 9 to shareholders of record as of May 26, 2021.
- Goldman Sachs Group Inc.: Goldman Sachs is a bank holding company involved in global investment banking, trading, investment management, and consumer banking operations.
- Fifth Third Bancorp: Fifth Third Bancorp is a bank and financial holding company serving commercial and individual customers primarily in the Midwest and Southeastern U.S. The company offers deposit accounts, loans, and a wealth and asset management service.
These are the financial stocks that had the highest total return over the last 12 months.
|Financial Stocks with the Most Momentum|
|Price ($)||Market Cap ($B)||12-Month Trailing Total Return (%)|
|Invesco Ltd. (
|Ally Financial Inc. (
|Western Alliance Bancorp (
|Financial Select Sector SPDR ETF (XLF)||N/A||N/A||74.6|
- 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. Net income attributable to Invesco more than tripled YOY for Q1 2021, while revenue posted a modest gain. Performance was driven by higher average assets under management and a decrease in operating expenses.
- 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.
- Western Alliance Bancorp: Western Alliance Bancorp provides banking services primarily to business customers.
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YCharts. “Financial Data.” Accessed May 25, 2021.
Rocket Companies Inc. “Rocket Companies Announces First Quarter Results.” Accessed May 25, 2021.
S&P Global Ratings. “Athene Holding Ltd. Upgraded To ‘A-‘, Outlook Is Positive; Operating Entities Upgraded To ‘A+’, Outlook Is Stable,” Page 1. Accessed May 25, 2021.
Old Republic International Corp. “Old Republic Declares Second Quarter Cash Dividend Of 22 Cents Per Share.” Accessed May 25, 2021.
Everest Re Group. “Everest Re Group Reports First Quarter 2021 Results,” Page 1, 7. Accessed May 27, 2021.
Everest Re Group Ltd. “Everest Re Group Announces Dividend.” Accessed May 25, 2021.
Invesco Ltd. “Invesco Reports Results for the Three Months Ended March 31, 2021.” Accessed May 25, 2021.