Financial firms serve as the backbone of the economy, providing essential services from lending and investment management to risk management and payment processing. But worries about economic uncertainty and potential market volatility have kept sentiment in check, and over the past six months, the industry's 6.2% return has trailed the S&P 500 by 10.9 percentage points.
Despite the lackluster result, a few diamonds in the rough can produce earnings growth no matter what, and we started StockStory to help you find them. Taking that into account, here are three resilient financials stocks at the top of our wish list.
S&P Global (SPGI)
Market Cap: $150.7 billion
Tracing its roots back to 1860 when it published the first railroad industry manual, S&P Global (NYSE: SPGI) provides credit ratings, market intelligence, commodity data, automotive analytics, and financial indices that help investors and businesses make decisions.
Why Is SPGI a Good Business?
- Decent 10.6% annual revenue growth over the last two years beat most of its peers, showing customers find value in its products and services
- Performance over the past two years was boosted by share buybacks, which enabled its earnings per share to grow faster than its revenue
- Industry-leading 25.8% return on equity demonstrates management’s skill in finding high-return investments
S&P Global is trading at $497.30 per share, or 25.8x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.
Moody's (MCO)
Market Cap: $87.95 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 Is MCO a Top Pick?
- Offerings and unique value proposition resonate with customers, as seen in its above-market 14.5% annual sales growth over the last two years
- Share buybacks catapulted its annual earnings per share growth to 22.3%, which outperformed its revenue gains over the last two years
- Industry-leading 63.8% return on equity demonstrates management’s skill in finding high-return investments
At $494 per share, Moody's trades at 30.8x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it’s free for active Edge members.
LendingClub (LC)
Market Cap: $2.11 billion
Pioneering peer-to-peer lending in the US before evolving into a digital bank, LendingClub (NYSE: LC) operates a marketplace that connects borrowers with lenders, offering personal loans, auto refinancing, and banking services.
Why Will LC Beat the Market?
- Impressive 24.7% annual revenue growth over the last five years indicates it’s winning market share this cycle
- Earnings per share have massively outperformed its peers over the last two years, increasing by 38.3% annually
LendingClub’s stock price of $18.26 implies a valuation ratio of 12.5x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.
High-Quality Stocks for All Market Conditions
Fresh US-China trade tensions just tanked stocks—but strong bank earnings are fueling a sharp rebound. Don’t miss the bounce.
Don’t let fear keep you from great opportunities and take a look at Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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