Financial providers use their expertise in capital allocation and risk assessment to help facilitate economic growth while offering consumers and businesses essential financial services. But uncertainty about fiscal and monetary policy has tempered enthusiasm, and over the past six months, the industry has pulled back by 11.4%. This drop was worse than the S&P 500’s 4.8% fall.
The elite companies can churn out earnings growth under any circumstance, however, and our mission at StockStory is to help you find them. Taking that into account, here are three resilient financials stocks at the top of our wish list.
StepStone Group (STEP)
Market Cap: $3.73 billion
Operating as both an advisor and asset manager with over $100 billion in assets under management, StepStone Group (NASDAQ: STEP) is an investment firm that provides clients with access to private market investments across private equity, real estate, private debt, and infrastructure.
Why Do We Watch STEP?
- Market share has increased this cycle as its 43% annual revenue growth over the last two years was exceptional
- Earnings growth has massively outpaced its peers over the last two years as its EPS has compounded at 41.7% annually
At $46.55 per share, StepStone Group trades at 18.7x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
Capital One (COF)
Market Cap: $110.3 billion
Starting as a credit card company in 1988 before expanding into a full-service bank, Capital One (NYSE: COF) is a financial services company that offers credit cards, auto loans, banking services, and commercial lending to consumers and businesses.
Why Do We Like COF?
- Market share has increased this cycle as its 20.8% annual revenue growth over the last two years was exceptional
- Additional sales over the last five years increased its profitability as the 27.6% annual growth in its earnings per share outpaced its revenue
- Adequate return on equity shows management makes decent investment decisions
Capital One is trading at $177.75 per share, or 8.6x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it’s free.
Moody's (MCO)
Market Cap: $76.91 billion
Founded in 1900 during America's railroad boom when investors needed reliable information on bond risks, Moody's (NYSE: MCO) provides credit ratings, risk assessment tools, and analytical solutions that help organizations evaluate financial risks and make informed investment decisions.
Why Will MCO Outperform?
- Solid 14.2% annual revenue growth over the last two years indicates its offering’s solve complex business issues
- Share repurchases over the last two years enabled its annual earnings per share growth of 22.8% to outpace its revenue gains
- Market-beating return on equity illustrates that management has a knack for investing in profitable ventures
Moody’s stock price of $436.00 implies a valuation ratio of 25.4x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
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