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4 Excellent Financial Stocks with High Growth Prospects
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The year 2016 began on an optimistic note for the Finance sector. The hike in interest rates by the Fed in Dec 2015 (almost after a decade) significantly boosted profitability projections for the finance stocks. Except REITs, the other Finance sector constituents – banks, brokerage firms, asset managers and insurers – typically benefit from a rising rate environment.
The probability of additional rate hikes later this year has also provided much needed buoyancy to the sector. Further, the latest comments by the Fed officials indicate a high chance of rate hike in the near term. Nevertheless, the ambiguity over the timing of the Fed’s next action on this front continues to have an adverse impact to some extent.
Apart from this, the U.S. economy is progressing well as indicated by the improving real GDP numbers, falling unemployment rate, rising consumer spending and stabilizing housing market. These have further boosted investors’ confidence in the finance stocks as the sector’s performance is largely dependent on the nation’s economic health.
Also, the recently concluded earnings season witnessed a better-than-expected performance from the sector, indicating better performance for the well-positioned stocks.
So, this is the right time to add a handful of finance stocks that hold immense growth potential.
Here is How to Select
Choosing the right stocks from the vast finance sector universe is not an easy task. So, we have taken the help of the Zacks Stock Screener to shortlist stocks with a Zacks Rank #1 (Strong Buy) or #2 (Buy) and the Growth Style Score of ‘A’.
Our research shows that stocks with Growth Style Scores of ‘A’ or ‘B’ when combined Zacks Rank # 1 or #2 offer the best investment opportunities in the growth investing space.
Here are the four finance stocks that met the criteria:
Emeryville, CA–based NMI Holdings, Inc. (NMIH - Free Report) provides private mortgage guaranty insurance services in the U.S.
Zacks Rank: #1 Market Cap: $439.3 million
New York-based Greenhill & Co., Inc. is an investment bank offering financial advice on significant mergers, acquisitions and restructurings. It assists private funds in raising capital from investors and manages merchant banking funds.
Zacks Rank: #2 Market Cap: $645.9 million
Toronto, Canada-based Colliers International Group Inc. (CIGI - Free Report) provides commercial real estate services to real estate occupiers, owners, and investors across the globe.
Zacks Rank: #2 Market Cap: $1.6 billion
Evercore Partners Inc. (EVR - Free Report) , based in New York, is an investment banking boutique providing advisory services related to mergers, acquisitions, divestitures, restructurings and other strategic corporate transactions.
Zacks Rank: #2 Market Cap: $2 billion
Looking for under-the-radar companies with home run profit potential? Well you’ll definitely want to check out our Home Run Investor service to find these aggressive growth stocks that could soar in the months ahead. See the stocks and learn more about Home Run Investor here>>>
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4 Excellent Financial Stocks with High Growth Prospects
The year 2016 began on an optimistic note for the Finance sector. The hike in interest rates by the Fed in Dec 2015 (almost after a decade) significantly boosted profitability projections for the finance stocks. Except REITs, the other Finance sector constituents – banks, brokerage firms, asset managers and insurers – typically benefit from a rising rate environment.
The probability of additional rate hikes later this year has also provided much needed buoyancy to the sector. Further, the latest comments by the Fed officials indicate a high chance of rate hike in the near term. Nevertheless, the ambiguity over the timing of the Fed’s next action on this front continues to have an adverse impact to some extent.
Apart from this, the U.S. economy is progressing well as indicated by the improving real GDP numbers, falling unemployment rate, rising consumer spending and stabilizing housing market. These have further boosted investors’ confidence in the finance stocks as the sector’s performance is largely dependent on the nation’s economic health.
Also, the recently concluded earnings season witnessed a better-than-expected performance from the sector, indicating better performance for the well-positioned stocks.
So, this is the right time to add a handful of finance stocks that hold immense growth potential.
Here is How to Select
Choosing the right stocks from the vast finance sector universe is not an easy task. So, we have taken the help of the Zacks Stock Screener to shortlist stocks with a Zacks Rank #1 (Strong Buy) or #2 (Buy) and the Growth Style Score of ‘A’.
Our research shows that stocks with Growth Style Scores of ‘A’ or ‘B’ when combined Zacks Rank # 1 or #2 offer the best investment opportunities in the growth investing space.
Here are the four finance stocks that met the criteria:
Emeryville, CA–based NMI Holdings, Inc. (NMIH - Free Report) provides private mortgage guaranty insurance services in the U.S.
Zacks Rank: #1
Market Cap: $439.3 million
New York-based Greenhill & Co., Inc. is an investment bank offering financial advice on significant mergers, acquisitions and restructurings. It assists private funds in raising capital from investors and manages merchant banking funds.
Zacks Rank: #2
Market Cap: $645.9 million
Toronto, Canada-based Colliers International Group Inc. (CIGI - Free Report) provides commercial real estate services to real estate occupiers, owners, and investors across the globe.
Zacks Rank: #2
Market Cap: $1.6 billion
Evercore Partners Inc. (EVR - Free Report) , based in New York, is an investment banking boutique providing advisory services related to mergers, acquisitions, divestitures, restructurings and other strategic corporate transactions.
Zacks Rank: #2
Market Cap: $2 billion
Looking for under-the-radar companies with home run profit potential? Well you’ll definitely want to check out our Home Run Investor service to find these aggressive growth stocks that could soar in the months ahead. See the stocks and learn more about Home Run Investor here>>>