Financial firms serve as the backbone of the economy, providing essential services from lending and investment management to risk management and payment processing. Still, investors are uneasy as companies face challenges from an unpredictable interest rate and inflation environment. These doubts have certainly contributed to the indutry's recent underperformance - over the past six months, its 1.8% gain has fallen behind the S&P 500's 5.4% rise.
The elite companies can churn out earnings growth under any circumstance, however, and our mission at StockStory is to help you find them. On that note, here are three financials stocks boasting durable advantages.
Ares (ARES)
Market Cap: $26.08 billion
With roots in the leveraged finance group of Apollo Management, Ares Management (NYSE: ARES) is an alternative investment firm that manages private equity, credit, real estate, and infrastructure assets for institutional and high-net-worth clients.
Why Will ARES Outperform?
- Impressive 21.4% annual revenue growth over the last five years indicates it’s winning market share this cycle
- Earnings growth has comfortably beaten the peer group average over the last five years as its EPS has compounded at 20.7% annually
Ares is trading at $117.25 per share, or 19.3x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
Payoneer (PAYO)
Market Cap: $1.78 billion
Founded during the early days of global e-commerce in 2005 to solve international payment challenges, Payoneer (NASDAQ: PAYO) provides financial technology services that enable small and medium-sized businesses to send and receive payments globally across borders.
Why Will PAYO Beat the Market?
- Market share has increased this cycle as its 26.3% annual revenue growth over the last five years was exceptional
- Share repurchases over the last two years enabled its annual earnings per share growth of 24.6% to outpace its revenue gains
Payoneer’s stock price of $5.15 implies a valuation ratio of 22.6x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.
Jack Henry (JKHY)
Market Cap: $11.12 billion
Founded in 1976 by two entrepreneurs who saw the need for specialized banking software in the early days of financial computing, Jack Henry & Associates (NASDAQ: JKHY) provides technology solutions that help banks and credit unions innovate, differentiate, and compete while serving the evolving needs of their accountholders.
Why Are We Backing JKHY?
- Annual revenue growth of 7.6% over the last five years was above the sector average and underscores its products and services value to customers
- Incremental sales over the last two years boosted profitability as its annual earnings per share growth of 16.8% outstripped its revenue performance
- Stellar return on equity showcases management’s ability to surface highly profitable business ventures
At $151.83 per share, Jack Henry trades at 23.4x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.
Our AI system flagged Palantir before it ran 1,662%. AppLovin before it ran 753%. Nvidia before it ran 1,178%. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE.
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
