Best Financial Service Stocks Right Now

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Contributor, Benzinga
May 9, 2022

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Bread Financial Holdings (XNYS:BFH)

Formed by a combination of J.C. Penney’s credit card processing unit and The Limited’s credit card bank business, Bread Financial is a provider of private label and co-branded credit cards, loyalty programs, and marketing services. The company’s most financially significant unit is its credit card business that partners with retailers to jointly market Bread’s credit cards to their customers. The company also retains minority interest in its recently spunoff LoyaltyOne division, which operates the largest airline miles loyalty program in Canada and offers marketing services to grocery chains in Europe and Asia.

Bread Financial Holdings
(XNYS:BFH)
$44.67
0.17[0.38%]
Last update: 3:59PM
Day Range44.2 - 45.68
52 Wk Range34.55 - 60.79
Open / Close44.71 / 44.69
Vol / Avg.676.3K / 1M
Mkt Cap2.2B
P/E4.55
Div / Yield0.84/1.89%
Payout Ratio8.58
Total Float-

KeyCorp (XNYS:KEY)

With assets over $150 billion, Ohio-based KeyCorp’s bank footprint spans 16 states, but it is predominantly concentrated in its two largest markets: Ohio and New York. KeyCorp is primarily focused on serving middle-market commercial clients through a hybrid community/corporate bank model. This past quarter, Blackstone posted a 50.7% growth in earnings, as well as 26.2% revenue growth, displaying a much higher growth rate than its competitors.

KeyCorp
(XNYS:KEY)
$19.773
0.323[1.66%]
Last update: 3:59PM
Day Range19.34 - 19.87
52 Wk Range16.41 - 27.17
Open / Close19.35 / 19.78
Vol / Avg.8.8M / 10.1M
Mkt Cap18.4B
P/E8.53
Div / Yield0.78/4.01%
Payout Ratio33.77
Total Float-

Silvergate Capital (XNYS:SI)

Silvergate Capital Corp is a provider of innovative financial infrastructure solutions and services. Its solutions and service offerings include Silvergate Exchange Network, Cash Management Solutions and Deposit Account Services. Its customers include U.S. exchanges and global investors in the digital currency industry. With a whopping 52 week price range from 20.93 – 187.86 and current price of 148.46, Silvergate Capital has shown a jump in share price that very few companies have experienced. The company recently announced its Q3 results, which were outstanding, attracting investors due to its unique business model.

Silvergate Capital
(XNYS:SI)
$104.20
-1.93[-1.82%]
Last update: 3:59PM
Day Range100.99 - 105.74
52 Wk Range50.65 - 162.65
Open / Close104.75 / 104.14
Vol / Avg.575.9K / 1.2M
Mkt Cap3.3B
P/E30.67
Div / Yield-
Payout Ratio-
Total Float-

Rocket Companies (XNYS:RKT)

Rocket Companies is a financial services company that was originally founded as Rock Financial in 1985 and is currently based in Detroit. Rocket Companies offers a wide array of services and products but is best known for its Rocket Mortgage business. The company’s mortgage lending operations are split between its direct-to-consumer lending, which sees borrowers accessing the company’s lending arm directly through either its mobile app or website, and its partner network where mortgage brokers and other firms use Rocket’s origination process to offer loans to their customers. The company has rapidly gained market share in recent years and is now the largest mortgage originator in the U.S. as well as the servicer for more than 2 million loans.

Rocket Companies
(XNYS:RKT)
$11.215
0.565[5.31%]
Last update: 3:59PM
Day Range10.56 - 11.31
52 Wk Range6.27 - 15.26
Open / Close10.73 / 11.22
Vol / Avg.4.2M / 3.5M
Mkt Cap1.3B
P/E8.26
Div / Yield-
Payout Ratio-
Total Float-

KKR & Co (XNYS:KKR)

KKR is one of the world’s largest alternative asset managers, with $459.1 billion in total assets under management, including $349.1 billion in fee-earning AUM, at the end of September 2021. The company has two core segments: asset management (which includes private markets–private equity, credit, infrastructure, energy and real estate–and public markets– primarily credit and hedge/investment fund platforms) and insurance (following the February 2021 purchase of a 61.5% economic stake in Global Atlantic Financial Group, which is engaged in retirement/annuity and life insurance lines as well as reinsurance). On the asset management side, private markets accounts for 42% of fee-earning AUM and 67% of base management fees, while public markets account for 58% and 33%, respectively.

KKR & Co
(XNYS:KKR)
$57.19
-0.33[-0.57%]
Last update: 3:59PM
Day Range56.29 - 57.68
52 Wk Range44.28 - 75.19
Open / Close57.02 / 57.2
Vol / Avg.2M / 2.9M
Mkt Cap49.2B
P/E49.59
Div / Yield0.62/1.08%
Payout Ratio50.86
Total Float-

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 financial services sector, which are holistically represented by the Fidelity® MSCI Financials ETF (FNCL), have broadly outperformed the market, but it helps to review each new stock to learn which are or will perform the best. 

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

Overview: Financial Services Stocks

Financial services companies offer an array of services and products to help customers create wealth and manage their financial portfolio. This industry can be classified under 5 subsectors.  

  • Banks are among the oldest financial institutions in the world. You can open an account as an individual or a corporate entity. Financial services include deposits and withdrawals of money, safes to store valuables, loans and more. Some of the major players are JP Morgan Chase (NYSE: JPM), Bank of America (NYSE: BAC), Wells Fargo (NYSE: WFC) and Citibank (NYSE: C).  
  • Asset management companies invest the combined capital from customers into stocks, real estate, mutual funds and exchange-traded funds (ETFs). These firms manage the risk of customer investment portfolios to provide a consistent rate of return. A few of these renowned asset management firms include Fidelity (NYSE: FNF), Charles Schwab (NYSE: SCHW), UBS Group (NYSE: UBS) and Vanguard Group. 
  • Insurance companies help you plan expenses due to unforeseen events. Your monthly premium will provide financial coverage of perils covered by your policy. Berkshire Hathaway (NYSE: BRK.A), MetLife (NYSE: MET) and United Healthcare (NYSE: UNH) are among the largest insurance companies in the world.  
  • Venture capital firms invest in early-stage companies in exchange for an equity stake or shares in the company. Startups and small businesses can pitch a business idea for funding from a panel of investment experts. Accel, Sequoia Capital and Lightspeed Venture Partners are some of the most active venture capital firms out there. 
  • Private equity firms directly invest a majority stake in a company or outright buy the company. Private equity firms optimize operations by cutting costs and improving the growth of the company before reselling it for a profit. A few notable private equity firms in the market are The Carlyle Group (NASDAQ: CG), The Blackstone Group (NYSE: BX) and Apollo Global Management (NYSE: APO). 

Invest your money in these financial services companies to ramp up your portfolio and earn solid returns on your investment. 

Best Online Brokers for Financial Services Stock

Online brokers let you trade stocks, penny stocks, ETFs, mutual funds and other financial products on a single platform. These online brokers equip you with the tools and educational resources to improve your trading skills. 

Benzinga suggests these top online brokers to get you started. 

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Features to Look for in Financial Services Stock

1. Earnings per share is the portion of a company's profit allocated to each outstanding share of its common stock. You can determine the profitability of a company by its EPS. To calculate the EPS, divide the net income of a company by its total number of outstanding shares. 

2. The price-earnings (P/E) ratio of a company is calculated by dividing the price of the stock by its EPS. The lower the P/E ratio, the better an investment it is. You can find many stocks under $10 with the lowest P/E ratio.  

3. Free cash flow: Financial service companies have strong cash flows due to constant additions of their client’s assets under management (AUM). Compare the cash flow and cash equivalents held by a company every quarter to find the best financial service stocks to invest in. 

Fintech to Fortify Your Future

Paperless transactions and internet banking have revolutionized the financial services industry. Stocks from this sector optimize processes to enable hassle-free wealth management. Consider investing in these up-and-coming fintech stocks to secure your financial future.