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Best financial stocks to buy in 2021
This page lists the top financial stocks you can find right now. We have ranked them based on various metrics such as their recent market performance, dividends, and fundamental value. Simply scroll down to find out more.
What are the top financial stocks to buy?
The table below lists the best financial companies around, as ranked by our team of experts. If you want to see their latest share price, go through the links in the table. Otherwise, scroll down to find out more information about why each one was chosen.
|#||Stock symbol||Company name|
|1||JPM||JPMorgan Chase & Co.|
|2||AXP||American Express Company|
|3||GS||Goldman Sachs Group Inc.|
If you want to find out more about each company, scroll down for additional information along with an explanation of the financial sector as a whole.
1. JPMorgan Chase & Co. (NYSE: JPM)
Founded in 2000 and headquartered in New York City, JPMorgan Chase & Co. is a tier-1 American investment bank and financial services holding company.
Over the course of the last 10 years, the company’s share price has consistently grown, with gains in the last year accelerating exponentially. With a market cap of around $500 billion, and revenue of well over $100 billion per annum, and with over $3 trillion in assets under the bank’s control, it has enormous fundamental value.
What has secured JPMorgan’s place on our list is its strong growth. For a company of its scale to provide significant shareholder value is impressive. Looking to the future, the firm’s 10-year plans to invest $2.5 trillion in sustainable green infrastructure will prove key to any success.
If you would like to invest in JPMorgan, read our guide for more information.
2. American Express Company (NYSE: AXP)
Also headquartered in New York, American Express is a multinational financial services corporation that was founded back in 1950. Some of the company’s most well-known services include charge cards and credit cards.
In terms of the company’s recent performance, annual revenue of over $40 billion and a rapidly growing share price are both important reasons why American Express has ended up on our list. With a market cap of well over $100 billion, the company’s recent rapid growth has caught the attention of many investors.
Having overcome the impact of COVID-19, a great deal of American Express’ future growth will be cyclical because it is a financial stock. However, with demand for new cards back on the rise, and with the company making its first foray into small-business loans outside the U.S. while big banks implement lending restrictions, the blueprint for growth appears solid.
3. Goldman Sachs Group Inc. (NYSE: GS)
Perhaps the world’s most well-known investment bank, Goldman Sachs was founded in 1869 and is headquartered in Manhattan. Its wide range of services includes asset and investment management, securities underwriting, and even services in prime brokerage.
The company’s annual revenue is well over $40 billion, and the total assets under its control are valued at over $1 trillion. In recent years, the company’s market cap has grown to well over $100 billion, and this growth has accelerated since the tail-end of 2020.
Goldman Sachs is a classic example of a value stock. It has been on the scene for generations, and if you are looking for one of the most robust, durable financial stocks around, look no further. The main reason the company is on our list is that we feel its current value makes it a great opportunity when you consider the fundamentals that lie within.
If you want to invest in Goldman Sachs, read our starters’ guide for more details.
4. Visa Inc. (NYSE: V)
Headquartered in California and founded in 1958, Visa is a multinational financial services provider that specialises in facilitating global electronic fund transfers, commonly via its range of Visa-branded debit, credit and prepaid cards.
The company generates a substantial amount of revenue; over $20 billion per year, in fact. With over 19,000 employees hard at work worldwide, Visa has reached a market cap of around $500 billion and has grown at an almost constant, impressive rate for the past 20 years. It is this consistency that has landed it on our list.
While Visa was passed by China UnionPay as the world’s largest payment organisation in 2015, the future still looks promising. A primary component of this is Visa’s hybrid combination of traditional financial services and fintech services, so when one sector is down, the other can step up.
If you want to find out how to invest in Visa, check out our detailed guide.
5. PayPal Holdings (NASDAQ: PYPL)
PayPal is a financial technology company that’s best known for its online payments system. Founded in the late 1990s, PayPal was closely linked to eBay for many years but is now completely independent and a member of the S&P100, a list of the most established companies in America, in its own right.
The success of PayPal is built around e-commerce and online shopping. Many merchants use it to process their online payments, and many customers use it to spend online and transfer money around the world. The stock price has doubled since the pandemic, which only accelerated trends which were in evidence already.
By far the youngest company in this list, PayPal is also one of the most agile. It regularly buys up new technology, has already expanded into China, and now offers the ability for customers to buy and hold cryptocurrency through the platform. That desire to keep growing and innovating is a great sign for the future.
Where to buy the best financial shares
If you want to know where to find the best financial stocks, look no further than our table below. Our team of experienced financial analysts have compiled this list of brokers based on the reliability of each platform, the favourable fee structure, and the variety of investable assets on offer.
What is a financial stock?
A financial stock is a publicly-traded company that provides financial services to clients. This includes things like savings accounts, ISAs, investment banking, loans, payment cards and much more.
Typically, financial stocks are the stock type that is most affected by broader market behaviour. When the global financial system is on the rise, financial stocks are great securities to hold, whereas when a bear market is on the horizon, it could be time to sell up.
Are financial shares a good investment?
Investing in financial stocks is usually a good decision, though as previously mentioned, broader market trends are extremely important when taking the plunge. Make sure to conduct necessary due diligence and analysis of the wider economy to understand if now is the right time to dive in.
On the whole, financial stocks perform well and are rarely down for too long. In addition, many are large companies that pay dividends.
As technologies continue to develop, financial shares need to position themselves at the forefront of these innovations to provide the best services to their customers and compete with the competition. As such, a forward-thinking approach is a key trait to look for when investing in financial stocks.
To learn more about financial stocks, check out the most recent financial sector news below.
Latest financial news
HSBC stock prediction as pre-tax profit jumps 76%
PayPal rejects reports that it was in talks to buy Pinterest Inc
Lloyds share price forecast ahead of earnings and Sunak’s budget
HSBC share price forecast ahead of quarterly earnings
Delano Saporu: this underperforming stock is a good buy ahead of earnings
Coinbase stock outlook as Bitcoin trades near all-time highs
Fact-checking & references
Our editors fact-check all content to ensure compliance with our strict editorial policy. The information in this article is supported by the following reliable sources.
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