We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
7 Hot Financial Stocks That Gained More Than 60% in 2016
Read MoreHide Full Article
The operating environment has not been favorable since the beginning of 2016, but the finance sector has finally emerged triumphant. The nation’s economic health, which the sector is largely dependent on, has improved decently as indicated by increasing real GDP numbers, declining unemployment rate, improving consumer spending and stabilizing housing market.
All these led to most awaited interest rate hike this month. The interest rate was hiked to 0.50%–0.75% from 0.25%–0.50% raised in Dec 2015.
In a press conference, following the decision, Federal Reserve Chairwoman Janet Yellen said: “My colleagues and I are recognizing the considerable progress the economy has made toward our dual objectives of maximum employment and price stability … We expect the economy will continue to perform well, with the job market strengthening further and inflation rising to 2 percent over the next couple of years.”
Except REITs, the other Finance sector constituents – banks, brokerage firms, asset managers and insurers – typically benefit from a rising rate environment.
Also, the finance companies’ performance in the third quarter was decent, despite a challenging operating environment. The companies were able to maintain bottom-line growth with improved loans and deposits, and efficient cost-control measures. Further, trading volumes improved, while mortgage lending showed strength.
In addition, financial stocks have witnessed a post-election rally. Riding on higher rates and improved lending margins, along with the expectation oflesser regulations under Donald Trump administration, the finance sector has gained 8.1% since the election date. Trump's proposed infrastructure spending plans, tax cuts and reduced regulations are likely to spur economic activity.
Though the ongoing structural changes are expected to continue, with investments in emerging technologies, initial market reactions post election results indicate improved prospects for financial stocks in 2017.
We have picked seven stocks that not only outperformed the market, but also possess solid growth prospects.
Selecting the Winning Stocks
We have taken the help of the Zacks Stock Screener to shortlist financial stocks with a Zacks Rank #1 (Strong Buy) or #2 (Buy) and 60% or more positive share price movement.
Here are the top seven financial stocks that meet the criteria:
Dallas, TX-based Comerica Inc. (CMA - Free Report) is a diversified financial institution, providing various financial products and services across Texas, California, Michigan, Arizona and Florida, and in Canada and Mexico.
CenterState Banks, Inc. , headquartered in Davenport, FL, is engaged in providing various consumer and commercial banking services to individuals, businesses, and industries in Florida.
Independent Bank Group, Inc. (IBTX - Free Report) , headquartered in McKinney, TX, is a bank holding company for Independent Bank, providing a range of commercial banking products and services to businesses, professionals, and individuals in the U.S.
SLM Corporation (SLM - Free Report) headquartered in Newark, DE, operates as a saving, planning and paying for education company in the U.S. It offers private education loans to students and their families.
UMB Financial Corporation (UMBF - Free Report) headquartered in Kansas City, MO, provides various banking and other financial products and services in the U.S. and internationally.
Salt Lake City, UT-based Zions Bancorporation (ZION - Free Report) is a financial holding company, providing a range of banking and related services in Arizona, California, Colorado, Idaho, Nevada, New Mexico, Oregon, Texas, Utah, Washington, and Wyoming. The company offers community banking services as well.
While the above ideas are being shared with the public, other trades are hidden from everyone but selected members. Would you like to peek behind the curtain and view them? Starting today, for the next month, you can follow all Zacks' private buys and sells in real time from value to momentum . . . from stocks under $10 to ETF and option moves . . . from insider trades to companies that are about to report positive earnings surprises (we've called them with 80%+ accuracy). You can even look inside portfolios so exclusive that they are normally closed to new investors. Click here for Zacks' secret trades >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
7 Hot Financial Stocks That Gained More Than 60% in 2016
The operating environment has not been favorable since the beginning of 2016, but the finance sector has finally emerged triumphant. The nation’s economic health, which the sector is largely dependent on, has improved decently as indicated by increasing real GDP numbers, declining unemployment rate, improving consumer spending and stabilizing housing market.
All these led to most awaited interest rate hike this month. The interest rate was hiked to 0.50%–0.75% from 0.25%–0.50% raised in Dec 2015.
In a press conference, following the decision, Federal Reserve Chairwoman Janet Yellen said: “My colleagues and I are recognizing the considerable progress the economy has made toward our dual objectives of maximum employment and price stability … We expect the economy will continue to perform well, with the job market strengthening further and inflation rising to 2 percent over the next couple of years.”
Except REITs, the other Finance sector constituents – banks, brokerage firms, asset managers and insurers – typically benefit from a rising rate environment.
Also, the finance companies’ performance in the third quarter was decent, despite a challenging operating environment. The companies were able to maintain bottom-line growth with improved loans and deposits, and efficient cost-control measures. Further, trading volumes improved, while mortgage lending showed strength.
In addition, financial stocks have witnessed a post-election rally. Riding on higher rates and improved lending margins, along with the expectation oflesser regulations under Donald Trump administration, the finance sector has gained 8.1% since the election date. Trump's proposed infrastructure spending plans, tax cuts and reduced regulations are likely to spur economic activity.
Though the ongoing structural changes are expected to continue, with investments in emerging technologies, initial market reactions post election results indicate improved prospects for financial stocks in 2017.
We have picked seven stocks that not only outperformed the market, but also possess solid growth prospects.
Selecting the Winning Stocks
We have taken the help of the Zacks Stock Screener to shortlist financial stocks with a Zacks Rank #1 (Strong Buy) or #2 (Buy) and 60% or more positive share price movement.
Here are the top seven financial stocks that meet the criteria:
Dallas, TX-based Comerica Inc. (CMA - Free Report) is a diversified financial institution, providing various financial products and services across Texas, California, Michigan, Arizona and Florida, and in Canada and Mexico.
Zacks Rank: #2
Market Cap: $11.9 billion
Year-to-date Price Change: 65.0%
You can see the complete list of today’s Zacks #1 Rank stocks here.
CenterState Banks, Inc. , headquartered in Davenport, FL, is engaged in providing various consumer and commercial banking services to individuals, businesses, and industries in Florida.
Zacks Rank: #1
Market Cap: $1.2 billion
Year-to-date Price Change: 62.6%
Looking for the Best Stocks for 2017? Be among the first to see our Top Ten Stocks for 2017 portfolio here.
Independent Bank Group, Inc. (IBTX - Free Report) , headquartered in McKinney, TX, is a bank holding company for Independent Bank, providing a range of commercial banking products and services to businesses, professionals, and individuals in the U.S.
Zacks Rank: #2
Market Cap: $1.2 billion
Year-to-date Price Change: 97.2%
Plano, TX-based LegacyTexas Financial Group, Inc. provides various banking and financial services in the U.S.
Zacks Rank: #2
Market Cap: $2.1 billion
Year-to-date Price Change: 71.8%
SLM Corporation (SLM - Free Report) headquartered in Newark, DE, operates as a saving, planning and paying for education company in the U.S. It offers private education loans to students and their families.
Zacks Rank: #2
Market Cap: $4.7 billion
Year-to-date Price Change: 67.9%
UMB Financial Corporation (UMBF - Free Report) headquartered in Kansas City, MO, provides various banking and other financial products and services in the U.S. and internationally.
Zacks Rank: #1
Market Cap: $3.8 billion
Year-to-date Price Change: 64.2%
Salt Lake City, UT-based Zions Bancorporation (ZION - Free Report) is a financial holding company, providing a range of banking and related services in Arizona, California, Colorado, Idaho, Nevada, New Mexico, Oregon, Texas, Utah, Washington, and Wyoming. The company offers community banking services as well.
Zacks Rank: #1
Market Cap: $8.9 billion
Year-to-date Price Change: 60.2%
Now See Our Private Investment Ideas
While the above ideas are being shared with the public, other trades are hidden from everyone but selected members. Would you like to peek behind the curtain and view them? Starting today, for the next month, you can follow all Zacks' private buys and sells in real time from value to momentum . . . from stocks under $10 to ETF and option moves . . . from insider trades to companies that are about to report positive earnings surprises (we've called them with 80%+ accuracy). You can even look inside portfolios so exclusive that they are normally closed to new investors. Click here for Zacks' secret trades >>