4 Top-Ranked Financial Stocks To Brave September Blues
Zacks Investment Research | Sep 01, 2017 05:06AM ET
Of late, the finance sector has been performing well with some monthly volatility. The nation’s economic health, on which the sector is largely dependent, has been showing steady improvement with increasing real GDP numbers, declining unemployment rate, improving consumer spending and stabilizing housing market.
Riding on higher rates and improved lending margins, along with the expectation of lesser regulations under Donald Trump administration, the finance sector has emerged triumphant. The S&P 500 Financials (Sector) Index gained 5.7%, so far this year.
Overall, the continuation of structural changes, with investments in emerging technologies, and a rising rate environment keep the prospects for financial stocks bright.
The finance companies’ performance in the second quarter was decent. While the companies were able to maintain bottom-line growth, concerns over underlying weakness shadowed the optimism to some extent. Results demonstrated an upswing in loans and improved margins. However, lower treasury yields curbed the benefits. Nevertheless, a rise in deposit balances and manageable expense level supported the results.
While September is generally considered the worst performing month for the stock market, here we bring a handful of finance stocks that are expected to give good returns, supported by the above mentioned catalysts.
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