Financial stocks include banks, insurance providers, credit card providers, and a range of other investment companies.
This type of stock is often called ‘value stock’ because the company shares hold intrinsic value typically lower than the stock’s market price.
Finbold analyzed the best financial stocks in terms of yield, value, and company quality and selected the two that had the optimal combination of all these perks.
Picks for you
Visa (NYSE: V)
Visa (NYSE: V) is a global payments technology company that provides payments across more than 200 countries and territories. Its main service is transaction processing from primary authorization, clearing, and settlement between customers and merchants.
This is also the largest financial stock by market capitalization and distributes a 0.75% dividend yield annually.
In its Q3 earnings report, Visa reported an increase in net revenue of 12% year-over-year. Net income has also jumped 22% during the same period. As cash is slowly pushed by digital payments, Visa is poised to gain.
TipRanks analysts also love the stock and give a ‘strong buy’ rating from 21 analysts in the past three months. Their target price is $283 in the next 12 months, or an 18% gain from the $239 per share it currently trades on the market.
JPMorgan Chase (NYSE: JPM)
JPMorgan Chase (NYSE: JPM) is the largest bank by market capitalization. It provides consumer and community banking services, corporate and investment, commercial banking, and asset and wealth management.
JPM has a high dividend yield of 2.66% annually, which should be good even for dividend investors.
Analysts on TipRanks hold a ‘moderate buy’ rating with a target price of $170 in the next 12 months. That’s 13% higher than the current price of $150.
JPM is up 11% year to date, while Visa is up 15%. When you add JPM’s dividend, both stocks seem to perform in line with the S&P 500’s 15% return during the same time.
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Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
