4 financial stocks to watch right now
4 trending financial stocks for your watchlist this week
With June’s consumer price index coming in just in time, up 9.1% from an estimated 8.8%, many are expecting big rate hikes from the Fed. And some may assume that financial stocks could benefit. But the industry has failed to build momentum in the stock market so far this year. Recession fears likely played a big role in these impending sentiments. That said, the sector can be considered more resilient compared to other high-growth sectors. Going forward, banking stocks, in particular, are likely to be in focus as Town (NYSE: C) and JP Morgan (NYSE: JPM) will release earnings later this week. All eyes will be on these big financials as they set the tone for the second quarter earnings session.
In addition to that, Bank of America (NYSE: BAC) recently published a new article that shows consumer spending continues to grow. Bank of America’s total aggregate credit and debit card spending increased 11% year-over-year in June, compared to 13% and 9% in April and May year-over-year , respectively. This shows that there are signs of resilience in consumer spending despite a rising inflation backdrop. Given all of this, let’s take a look at four of the top financial stocks in the stock market today.
Financial stocks to watch this week
Let’s first look at the financial services company, Wells Fargo. Simply put, the company offers a diverse set of consumer banking, investment and mortgage products and services. Not to mention, it also provides financial solutions to businesses through products and services such as traditional commercial lending, asset-based lending, trade finance, and investment banking. It should be noted that Wells Fargo recently named Kleber Santos as CEO of Consumer Lending. Mr. Kleber is a recognized leader and his experience will likely continue to strengthen the company’s position in consumer lending as it prepares for future growth.
In June, Wells Fargo announced the latest offering in its consumer credit card portfolio, the Wells Fargo Autograph Card. This new card follows the introduction of the Active Cash and Reflect cards in 2021 and offers 3X points on key spending categories for daily living expenses. This includes dining out, travel, gas, public transportation, and even streaming subscriptions. Additionally, it also strengthens the company’s partnership with Visa (NYSE: V) long-term. Given all of this, should investors jump on the WFC stock bandwagon?
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Similar to Wells Fargo, Morgan Stanley is another financial giant that would be no stranger to most. It provides a range of investment banking, wealth management and investment management services. With operations in over 41 countries, the bank serves clients such as corporations, governments, institutions and individuals. After doubling its dividend last year, Morgan Stanley continues to increase its dividend this year. Last month, the company announced it would increase its dividend by 11% and continue to repurchase its shares under a new $20 billion multi-year share buyback authorization. Therefore, it would not be surprising if investors paid close attention to MS shares at their current valuation.
In addition, Morgan Stanley at Work also announced the acquisition of American Financial Systems (AFS). For those unaware, it is a recognized leading provider of non-qualified executive benefit plan solutions and services. The acquisition will add to his workplace’s suite of offerings that range from executive services, pension advice and implementation, to equity-based compensation and financial wellness. After all, attracting and retaining top talent has always been a top priority for most companies today. With that in mind, would you bet on the future of MS stock?
As financial services continue to evolve, a company like PayPal will probably play a major role in the evolution of the financial sector. PayPal is essentially a technology platform that enables digital payments. It operates a two-way global network at scale that connects merchants and consumers with 426 million active accounts in over 200 markets. Its notable brands include PayPal, Hyperwallet, Venmo, Xoom, Zettle and many more. In June, the company announced PayPal Pay Monthly. This is its brand new buy it now, pay later offer issued by WebBank. Its customers will have the choice of spreading payments over longer periods. Therefore, allowing greater flexibility and even more choice to pay for the items they want and need.
On top of that, PayPal has shown that it is not resting on its laurels. Not so long ago, it announced the expansion of its range of credit offers to include a new business credit card. The PayPal Business Cashback Mastercard will be its first business credit card aimed at better meeting the day-to-day financing needs of business owners. Additionally, the card has no annual fee and cardholders will be eligible for 2% cash back on all purchases with no rewards earnings cap. Making it one of the highest cashback rewards values available in the market today. Given these exciting developments, is PYPL stock still one of the top financial stocks to watch?
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Finally, we have Amerant Bancorp. Specifically, the company offers individuals and businesses a range of deposit, credit, investment, retail banking and wealth management solutions. Currently, the bank operates in Florida and Texas. That said, the bank is constantly looking for opportunities to expand its presence. Last month, Amerant established a new commercial banking presence in the Greater Tampa Bay market. With the opening of an office at One Metro Center at MetWest International, the bank will provide a variety of transactional and business-related services.
Not to mention that the bank recently announced a vast strategic partnership with the Miami HEAT basketball club. Thus, making it the “Official Bank of the Miami HEAT”. The multi-year partnership will support key growth drivers such as marketing and business development opportunities. Some examples include the renaming of the premium North Lounge to “Amerant Lounge” and access to Miami HEAT player appearances. Given the popularity of the National Basketball Association (NBA), such marketing opportunities do not come easily. So should AMTB stocks top your watch list?
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