Financial institutions play a critical role, offering everything from consumer banking to wealth management and specialized financial solutions. But worries about economic uncertainty and potential market volatility have kept sentiment in check, and over the past six months, the industry’s 8.9% return has trailed the S&P 500 by 7.8 percentage points.
Despite the lackluster result, a few diamonds in the rough can produce earnings growth no matter what, and we started StockStory to help you find them. On that note, here are two financials stocks we think can generate sustainable market-beating returns and one that may face trouble.
One Financials Stock to Sell:
OneMain (OMF)
Market Cap: $6.37 billion
Dating back to 1912 and formerly known as Springleaf, OneMain Holdings (NYSE: OMF) provides personal loans, auto financing, and credit cards to nonprime consumers who have limited access to traditional banking services.
Why Are We Wary of OMF?
- 5.5% annual revenue growth over the last five years was slower than its financials peers
- Earnings per share fell by 9.3% annually over the last five years while its revenue grew, showing its incremental sales were much less profitable
OneMain’s stock price of $55.51 implies a valuation ratio of 7.3x forward P/E. Check out our free in-depth research report to learn more about why OMF doesn’t pass our bar.
Two Financials Stocks to Buy:
Affiliated Managers Group (AMG)
Market Cap: $9.45 billion
Using a partnership approach that preserves entrepreneurial culture at its portfolio companies, Affiliated Managers Group (NYSE: AMG) is an investment firm that acquires stakes in boutique asset management companies while allowing them to maintain operational independence.
What Makes AMG Stand Out?
- Share repurchases have amplified shareholder returns as its annual earnings per share growth of 23.7% exceeded its revenue gains over the last two years
- Stellar return on equity showcases management’s ability to surface highly profitable business ventures
At $367.26 per share, Affiliated Managers Group trades at 9.3x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.
StoneX (SNEX)
Market Cap: $7.80 billion
Originally known as INTL FCStone until its 2020 rebranding, StoneX Group (NASDAQ: SNEX) provides a global financial services network connecting companies, traders, and investors to markets through clearing, execution, and advisory services.
Why Will SNEX Outperform?
- Annual revenue growth of 36% over the last two years was superb and indicates its market share increased during this cycle
- Incremental sales significantly boosted profitability as its annual earnings per share growth of 40% over the last two years outstripped its revenue performance
- Annual tangible book value per share growth of 17.1% over the past five years was outstanding, reflecting strong capital accumulation this cycle
StoneX is trading at $64.81 per share, or 2.6x forward P/B. Is now the right time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.
But our AI platform says the party isn’t over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE.
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.
