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The Top Financial Stocks

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Top Financial stocks for May 2024

Image by Gerd Altmann from Pixabay

Expertise provided by Kevin Matthews from buildingbread.com

What is a Financial Stock?

A financial stock provides capital services to its customers. These could be people, businesses, organizations, or even governments. Capital services can be very broad but some key activities are the cornerstones of financial stocks.

Bank Deposits and Loans

Bank deposits are a key service provided by banks. This service allows depositors to safely store their capital and also get insurance on its safety by getting guarantees from the government on their deposits and also minimizing risk of theft by pooling their deposits with other depositors.

Banks then use the bulk of the deposits to provide loans to different entities. These loans can range from car loans to house loans all the way to business loans or even short term loans to other banks.

Payment Transactions

Companies like MasterCard (MA), Visa (V), and American Express (AXP) provide payment networks to help rapidly facilitate payment transactions. These companies provide fraud protection and payment protection for unauthorized transactions.

These payment networks also provide temporary capital liquidity by giving user's credit, adding to the purchasing power of individuals and businesses.

Why Buy a Financial Stock?

Financial stocks can provide returns that exceed the overall market. They are drivers of business and commerce. When the stock market goes up, financial stocks will typically move with a higher beta than the overall market.

Strong financial stocks will typically provide stable growth over multiple years. These stocks may have a fortress balance sheet or a niche regional market.

What Makes a Financial Stock Go Up?

Are Financial Stocks Risky?

Do Financial Stocks do Well in a Recession?

Do Financial Stocks Benefit From Inflation?

How are Financial Stocks Affected by Interest Rates?

Is it Smart to Invest in Bank Stocks?

What to Look for in Financial Stocks?

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General 04/23/2020

GS, Buy

Goldman Sachs Gr...
Return: 166.26%

GS, Buy

Return: 166.26%

Strong dividend, analysts are pointing to a $200+ stock price, this is going to likely be the first bank to jump if this pandemic ends.

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Stockteamup 06/06/2022

Starting to look at little more closely at insurance stocks. Although I work in the industry, I always shied away from them in the past. But some of the big names (including Hartford) are showing grea...

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General 09/26/2023

AXP, Buy

American Express...
Return: 58.25%

AXP, Buy

Return: 58.25%

Beyond credit cards, American Express offers various financial services, including personal and business loans, investment services, and travel-related services. This diversification can provide stabi...

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Texas 05/20/2022

MA, Buy

Mastercard Incor...
Return: 35.35%

MA, Buy

Return: 35.35%

Even during tough times, the daily expenses you use your credit card(s) for tend to stay stable. During an economic expansion, use of credit cards only increases. During this recent stock market dow...

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General 11/07/2023

The IntercontinentalExchange Inc Stock Analysis The IntercontinentalExchange Inc stocks are one of the best ways to invest in the stock exchange - simply purchase shares of the exchange #Intercontine...

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Manifest Investing 06/08/2022

Recreating our portfolio here at STOCKbossUP! The tracking portfolio has an annualized total return (since July 2010) of 16.0%. Visit https://www.manifestinvesting.com/dashboards/public/round-table...

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General 11/07/2023