Best financial stocks to buy in 2021

Financial stocks cover a wide range of businesses in the financial sector, from investment banks to insurance firms. This page outlines the best financial companies and explains what sets them apart from the competition.
By: Charlie Hancox
Charlie Hancox
Alongside his passion for trading, Charlie has represented Great Britain and won national championships as a water polo player,… read more.
Updated: May 28, 2021
Tip: our preferred broker is, eToro: visit & create account

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 symbolCompany name
1JPMJPMorgan Chase & Co.
2AXPAmerican Express Company
3GSGoldman Sachs Group Inc.
4VVisa Inc.
5VIRTVirtu Financial Inc (NASDAQ: VIRT)

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 include 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.) Virtu Financial Inc (NASDAQ: VIRT)

Virtu is a slightly different offering to the other companies on this list. The financial services player was only founded in 2008, making it the youngest company on this list, though it is also based in New York. Having conducted its IPO through the NASDAQ in 2015, the high-frequency trading company now creates around $2 billion in revenue per year.

The company’s share price has been volatile in recent years, though this is to be expected with such a young stock. What has sweetened the deal is the high dividend yield of over 3%, which makes Virtu stand out from the competition. 

With only around 1000 employees worldwide and a market cap of just $5 billion, this is a company with lots of room for growth. That is the main reason Virtu is on this list; it is a unique opportunity to gain exposure to the success of Virtu Financial’s product suite at an early stage. 

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. 

1
Min. Deposit
$50
Exclusive promotion
Our score
10
Trade/invest in stocks with just $50
Invest for dividends and get payout on stocks on Ex-Dividend day
Over 11 payment methods, including PayPal
Start Trading
Description:
eToro is a multi-asset investment platform with more than 2000 assets, including FX, stocks, ETF’s, indices and commodities. eToro users can connect with, learn from, and copy or get copied by other users. Buying stocks on eToro is free and you can invest with as little as $50.
Payment Methods
Wire Transfer, Bank Transfer
Full regulations list:
CySEC, FCA
eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro. Your capital is at risk.
2
Min. Deposit
$1
Exclusive promotion
Our score
9.3
0 Commissions and no deposit minimums
Registered with and regulated by SEC and FINRA
Loss of cash protection
Start Trading
Description:
Financial company driven by technology and offering all-in-one self-directed investment platform that provides excellent user experience.
Payment Methods
Full regulations list:

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

American Express Co. (NYSE:AXP) shares surged 3.44% higher on Friday after the company delivered impressive Q2 results. AXP reported stronger than expected revenue and earnings before markets opened. The company’s EPS spiked 866% to $2.80, beating analyst expectations by $1.17. On the other hand, revenue grew…
American Express Company (NYSE: AXP) reported its financial results for the second quarter on Friday that beat Wall Street estimates on the back of acceleration in spending. Shares of the company were about 4% up in premarket trading on Friday. Financial performance American Express said its net income in…
Shares of Wall Street giant JPMorgan Chase & Co. (NYSE: JPM) gained nearly 1% early Wednesday morning after the company’s board of directors authorized a large retention bonus for CEO Jamie Dimon. The move is notable as the 65-year old all-star CEO is approaching retirement age but he may…
UBS Group AG (NYSE:UBS) shares bounced off $14.42 to trade at about $15.30 on Tuesday after the company reported better than expected operating income.  The Zurich-based investment bank reported $8.98 billion (CHF 8.28 billion) in operating income up 21.4% from the same period a year ago,…
Square Inc (NYSE: SQ) took its next step towards expanding beyond payment processing as it launched banking services for small businesses on Tuesday. On top of Square Loans, the American financial services firm’s banking segment will now offer savings and checking accounts to small businesses. The news comes shortly…
The Goldman Sachs Group, Inc. (NYSE: GS) shares continue to trade in a bull market after strong second-quarter results. The second-quarter results contributed to the highest-ever first-half revenues of $33 billion and net earnings of over $12 billion; however, the Delta variant of the coronavirus continues to pose downside…

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.

Risk disclaimer

Invezz is a place where people can find reliable, unbiased information about finance, trading, and investing – but we do not offer financial advice and users should always carry out their own research. The assets covered on this website, including stocks, cryptocurrencies, and commodities can be highly volatile and new investors often lose money. Success in the financial markets is not guaranteed, and users should never invest more than they can afford to lose. You should consider your own personal circumstances and take the time to explore all your options before making any investment. Read our risk disclaimer >

Charlie Hancox
Financial writer
Alongside his passion for trading, Charlie has represented Great Britain and won national championships as a water polo player, and as a budding film director, has… read more.