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3 Finance Stocks to Watch After Crushing Earnings Expectations: BCS, CINF, LC

Following strong results from big banks earlier in the month, several financial sector stocks are standing out in this week's earnings lineup after crushing their Q2 EPS expectations.

Furthermore, these standouts offer diversity that expands across the finance scale, from a foreign banking institution to a leading insurance company and an up-and-coming consumer loan service provider.

 

Barclays – BCS

Zacks Rank #2 (Buy)

Starting with a major global banking and financial services company, Barclays (BCS - Free Report)  stock hit fresh 52-week highs of $20 a share on Tuesday after posting Q2 EPS of $0.62, eclipsing the Zacks Consensus of $0.50 by 24%.

Year over year, Barclays Q2 earnings spiked 47% from EPS of $0.42 in the prior period. This was driven by considerable sales growth with Q2 sales of $9.59 billion jumping 20% from $7.97 billion a year ago and topping estimates of $9.34 billion.

Benefiting from a strong business environment, it’s noteworthy that Barclays’ Zacks Banks-Foreign Industry is in the top 15% of over 240 Zacks industries.

Furthermore, the risk-to-reward has remained favorable to invest in the London-based bank compared to some of its European banking peers, with BCS still trading at just 8.9X forward earnings and under the optimum level of less than 2X forward sales.

Zacks Investment Research
Image Source: Zacks Investment Research

 

Cincinnati Financial – CINF

Zacks Rank #2 (Buy)

Next up, property and casualty insurance provider Cincinnati Financial (CINF - Free Report)  looks attractive after blowing away EPS expectations by nearly 42% on Monday with Q2 earnings at $1.97 per share compared to estimates of $1.39. This also reflected 53% growth from EPS of $1.29 in Q2 2024.

With CINF up a modest +4% in 2025 and sitting on gains of over +50% in the last three years to roughly match the broader market, its 2.28% annual dividend yield has attracted income investors. To that point, Cincinnati Financial’s dividend impressively tops the benchmark S&P 500’s 1.16% average and its Zacks Insurance-Property and Casualty Industry average of 0.27%

Furthermore, Cincinnati Financial is a Dividend King, boosting its dividend for more than 50 consecutive years (65) with an annualized dividend growth rate of 8.39% over the last five years.

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Image Source: Zacks Investment Research

 

LendingClub – LC

Zacks Rank #3 (Hold)

Rounding out the list, LendingClub (LC - Free Report)  continued to make strides in the consumer lending space with its online marketplace providing loan approval, pricing, servicing, and support operations.

Optimistically, LendingClub posted Q2 earnings of $0.33 per share on Tuesday, crushing estimates of $0.15 by 120% and soaring from $0.13 a share in the comparative quarter. LendingClub impressively surpassed top-line expectations as well, with Q2 sales of $248.43 million coming in 10% better than expected and spiking 32% from $187.24 million in the prior year quarter.

Like Barclays, the risk-to-reward has been appealing to invest in LendingClub stock, with LC shares trading under $20 and at a reasonable 20X forward earnings multiple. More intriguing, LendingClub has now reached or exceeded the Zacks EPS Consensus for 10 consecutive quarters with a very impressive average earnings surprise of 53.93% in its last four quarterly reports. That said, there could be better buying opportunities ahead as LC shares surged +20% in today's trading session.

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Bottom Line

Following their impressive Q2 earnings beats, Barclays, Cincinnati Financial, and LendingClub are three of the more intriguing stocks to watch in the financial sector and are starting to look deserving of spots in investors' portfolios.


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Barclays PLC (BCS) - free report >>

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