Financial firms serve as the backbone of the economy, providing essential services from lending and investment management to risk management and payment processing. These companies have benefited from improving market activity and economic fundamentals, so it's no surprise the industry has posted a 5% gain over the past six months, nearly mirroring the S&P 500.
Although these firms have produced good results, only a handful will thrive over the long term as fintech disruptors are rapidly taking market share from the incumbents. Keeping that in mind, here are three resilient financials stocks at the top of our wish list.
SEI Investments (SEIC)
Market Cap: $10.9 billion
Founded in 1968 as Simulated Environments Inc. to train bank loan officers using computer simulations, SEI Investments (NASDAQ: SEIC) provides technology platforms, investment management, and operational solutions for financial institutions, wealth managers, and investors.
Why Is SEIC a Top Pick?
- Decent 8.1% annual revenue growth over the last two years beat most of its peers, showing customers find value in its products and services
- Share repurchases have amplified shareholder returns as its annual earnings per share growth of 27.5% exceeded its revenue gains over the last two years
- Market-beating return on equity illustrates that management has a knack for investing in profitable ventures
At $88.14 per share, SEI Investments trades at 17x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
Discover (DFS)
Market Cap: $50.34 billion
Starting as a Sears subsidiary in 1985 before becoming independent in 2007, Discover Financial Services (NYSE: DFS) provides credit cards, personal loans, home loans, deposit products, and payment processing services through its Discover Network, PULSE, and Diners Club brands.
Why Will DFS Beat the Market?
- 11% annual revenue growth over the last two years surpassed the sector average as its products resonated with customers
- Earnings per share grew by 24.5% annually over the last five years, massively outpacing its peers
- Industry-leading 28.2% return on equity demonstrates management’s skill in finding high-return investments
Discover is trading at $198.10 per share, or 3.7x trailing 12-month price-to-sales. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.
PJT (PJT)
Market Cap: $4.26 billion
Spun off from Blackstone in 2015 and founded by former Morgan Stanley executive Paul J. Taubman, PJT Partners (NYSE: PJT) is an advisory-focused investment bank that provides strategic advice, restructuring services, and fundraising solutions to corporations, boards, and investment firms.
Why Is PJT Interesting?
- Annual revenue growth of 18.5% 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 23.2% over the last two years outstripped its revenue performance
- Market-beating return on equity illustrates that management has a knack for investing in profitable ventures
PJT’s stock price of $175.30 implies a valuation ratio of 25.9x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.
The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
