Financial institutions play a critical role, offering everything from consumer banking to wealth management and specialized financial solutions. But uncertainty about fiscal and monetary policy has tempered enthusiasm, limiting the industry’s gains to 3.8% over the past six months. This return lagged the S&P 500’s 6.3% climb.
Only some companies are subject to these dynamics, however, and a handful of high-quality businesses can deliver earnings growth in any environment. On that note, here are three financials stocks boasting durable advantages.
Nasdaq (NDAQ)
Market Cap: $52.51 billion
Originally founded in 1971 as the world's first electronic stock market, Nasdaq (NASDAQ:NDAQ) operates global exchanges and provides technology, data, and corporate services that help companies, investors, and financial institutions navigate capital markets.
Why Is NDAQ on Our Radar?
- Annual revenue growth of 13.8% over the last two years beat the sector average and underscores the unique value of its offerings
- Share repurchases over the last two years enabled its annual earnings per share growth of 18.6% to outpace its revenue gains
- Market-beating return on equity illustrates that management has a knack for investing in profitable ventures
Nasdaq is trading at $93.87 per share, or 21x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
Happen Bank (HAPN)
Market Cap: $2.16 billion
Pioneering peer-to-peer lending in the US before evolving into a digital bank, Happen Bank (NYSE:HAPN) operates a marketplace that connects borrowers with lenders, offering personal loans, auto refinancing, and banking services.
Why Will HAPN Outperform?
- Annual revenue growth of 18.1% over the last five years was superb and indicates its market share increased during this cycle
- Incremental sales over the last two years have been highly profitable as its earnings per share increased by 108% annually, topping its revenue gains
- Management team has demonstrated it can invest in profitable ventures through its 12% five-year return on equity
Happen Bank’s stock price of $19.56 implies a valuation ratio of 9.3x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free.
Nubank (NU)
Market Cap: $70.19 billion
With well over one hundred million customers across Brazil, Mexico, and Colombia through its viral member-get-member referral program, Nubank (NYSE:NU) is a digital banking platform that offers financial services including spending, saving, investing, borrowing, and protection products to millions of customers across Latin America.
Why Are We Bullish on NU?
- Annual revenue growth of 40.6% over the past two years was outstanding, reflecting market share gains this cycle
- Incremental sales significantly boosted profitability as its annual earnings per share growth of 53% over the last two years outstripped its revenue performance
- Industry-leading 14% return on equity demonstrates management’s skill in finding high-return investments
At $14.53 per share, Nubank trades at 15.3x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time.
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Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.