Financial providers use their expertise in capital allocation and risk assessment to help facilitate economic growth while offering consumers and businesses essential financial services. But worries about economic uncertainty and potential market volatility have kept sentiment in check, and over the past six months, the industry has tumbled by 1.9%. This drawdown is a stark contrast from the S&P 500’s 8.4% gain.
The elite companies can churn out earnings growth under any circumstance, however, and our mission at StockStory is to help you find them. On that note, here are two resilient financials stocks at the top of our wish list and one we’re steering clear of.
One Financials Stock to Sell:
MarketAxess (MKTX)
Market Cap: $4.13 billion
Pioneering the shift from phone-based to electronic bond trading since 2000, MarketAxess (NASDAQ: MKTX) operates electronic trading platforms that enable institutional investors and broker-dealers to efficiently trade fixed-income securities like corporate and government bonds.
Why Are We Cautious About MKTX?
- Sales trends were unexciting over the last five years as its 4% annual growth was below the typical financials company
- Performance over the past five years shows its incremental sales were less profitable as its earnings per share were flat
MarketAxess’s stock price of $120.89 implies a valuation ratio of 14.3x forward P/E. Check out our free in-depth research report to learn more about why MKTX doesn’t pass our bar.
Two Financials Stocks to Watch:
Cohen & Steers (CNS)
Market Cap: $3.91 billion
Founded in 1986 as a pioneer in real estate investment trusts (REITs), Cohen & Steers (NYSE: CNS) is an investment manager specializing in real estate securities, infrastructure, real assets, and preferred securities for institutional and individual investors.
Why Should CNS Be on Your Watchlist?
- Balance sheet strength has increased this cycle as its 20.7% annual tangible book value per share growth over the last two years was exceptional
- Industry-leading 37.3% return on equity demonstrates management’s skill in finding high-return investments
Cohen & Steers is trading at $77.08 per share, or 20.9x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it’s free.
BGC (BGC)
Market Cap: $5.37 billion
Tracing its roots back to 1945 and named after founder Bernard Gerald Cantor, BGC Group (NASDAQ: BGC) operates a global brokerage and financial technology platform that facilitates trading across fixed income, foreign exchange, equities, energy, and commodities markets.
Why Is BGC a Good Business?
- Annual revenue growth of 24.8% over the last two years was superb and indicates its market share increased during this cycle
- Earnings per share have massively outperformed its peers over the last two years, increasing by 24.6% annually
- Acceptable return on equity suggests management generated shareholder value by investing in profitable projects
At $11.65 per share, BGC trades at 7.9x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time.
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Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
