4 Buy Rated Financial Stocks to Snatch Up in May
StockNews
Published May 06, 2021 02:48PM ET
Updated May 06, 2021 03:30PM ET
4 Buy Rated Financial Stocks to Snatch Up in May
Financial sector stocks have been making an impressive comeback in lockstep with the economy’s recovery. So, we think investing in the stocks of fundamentally sound Goldman Sachs (GS), Lazard (NYSE:LAZ), Piper Sandler (PIPR), and Cowen (COWN) could pay off handsomely in the near term.The financial sector was one of the hardest-hit sectors last year because the near-zero interest rate environment and the COVID-19 pandemic hurt lenders’ revenues. While the interest-rate environment remains unchanged, the sector is now recovering on the back of a rebounding economy. Indeed, the global financial services market is expected to grow at a 9.9% CAGR to $22,515.17 billion in 2021.
Investors’ interest in the financial sector is evidenced by the Financial Select Sector SPDR ETF’s (XLF) 19.9% gains over the past three months compared to the SPDR S&P 500 ETF Trust’s (SPY) 7.2% returns. Adding to the positives, the Federal Reserve has given big banks clearance to resume their capital deployment activities.
So, with these factors in mind, we think it could be wise to bet on established financial companies. The Goldman Sachs Group , Inc. (NYSE:GS), Lazard Ltd (LAZ), Piper Sandler Companies (PIPR), and Cowen Inc. (COWN). These companies have market dominance and reported impressive results in their last reported quarters.
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