Financial institutions play a critical role, offering everything from consumer banking to wealth management and specialized financial solutions. Furthermore, supportive sentiment has created ideal market conditions, a trend that has enabled the industry to return 14.4% over the past six months. At the same time, the S&P 500 was up 10.5%.
Nevertheless, investors should tread carefully as many firms are cyclical due to their leverage and exposure to regulatory changes. With that said, here are two resilient financials stocks at the top of our wish list and one we would avoid.
One Financials Stock to Sell:
S&P Global (SPGI)
Market Cap: $128.4 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 Do We Think Twice About SPGI?
- Performance over the past five years shows its incremental sales were less profitable, as its 8.5% annual earnings per share growth trailed its revenue gains
S&P Global is trading at $435.75 per share, or 22.8x forward P/E. To fully understand why you should be careful with SPGI, check out our full research report (it’s free).
Two Financials Stocks to Buy:
Synchrony Financial (SYF)
Market Cap: $26.04 billion
Powering over 73 million active accounts and partnerships with major brands like Amazon, PayPal, and Lowe's, Synchrony Financial (NYSE:SYF) provides credit cards, installment loans, and banking products through partnerships with retailers, healthcare providers, and digital platforms.
Why Do We Love SYF?
- Earnings per share grew by 35.5% annually over the last two years and trumped its peers
- Impressive 14.5% annual tangible book value per share growth over the last five years indicates it’s building equity value this cycle
- Stellar return on equity showcases management’s ability to surface highly profitable business ventures
At $79.95 per share, Synchrony Financial trades at 8.2x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
Euronet Worldwide (EEFT)
Market Cap: $2.63 billion
Operating a global network of over 47,000 ATMs and 821,000 point-of-sale terminals across more than 60 countries, Euronet Worldwide (NASDAQ:EEFT) provides electronic payment solutions including ATM services, prepaid product processing, and international money transfer services.
Why Is EEFT a Top Pick?
- Decent 9.8% annual revenue growth over the last five years beat most of its peers, showing customers find value in its products and services
- Share repurchases over the last five years enabled its annual earnings per share growth of 28.3% to outpace its revenue gains
- Industry-leading 21.1% return on equity demonstrates management’s skill in finding high-return investments
Euronet Worldwide’s stock price of $70.29 implies a valuation ratio of 6.3x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.
Stocks We Like Even More
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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-micro-cap company Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.