In this article, we discuss the 5 best financial stocks to buy now. If you want to read our detailed analysis of these stocks, go directly to the 15 Best Financial Stocks to Buy Now.
5. JPMorgan Chase & Co. (NYSE: JPM)
Number of Hedge Fund Holders: 111
JPMorgan Chase & Co. (NYSE: JPM) stock has returned 57% to investors over the past year. It is placed fifth on our list of 15 best financial stocks to buy now. The firm operates as a financial services firm and is based in New York. On July 22, business news publication Business Insider reported that the bank would soon allow wealth clients access to cryptocurrency funds. Competitors like Bank of America and Goldman Sachs have also recently announced that they would let European clients deal in cryptocurrencies.
On July 14, investment advisory Credit Suisse raised the price target on JPMorgan Chase & Co. (NYSE: JPM) stock to $177 from $170 and reiterated an Overweight rating, noting the solid quarterly results posted by the firm earlier.
Out of the hedge funds being tracked by Insider Monkey, Washington-based investment firm Fisher Asset Management is a leading shareholder in the firm with 6.6 million shares worth more than $1 billion.
In its Q4 2020 investor letter, Bretton Fund, an asset management firm, highlighted a few stocks and JPMorgan Chase & Co. (NYSE: JPM) was one of them. Here is what the fund said:
“After a strong performance in 2019, we wrote this about our bank stocks in last year’s report: “There will be another recession sooner than later, and our banks will see larger loans losses, but we think this is more than priced into the stock, and our banks are well reserved for that eventuality.” Little did we know “sooner” really meant “a few weeks from now.” Despite the economic shock, the banks still have huge capital cushions that can absorb large loan losses. Our remaining bank investments, JPMorgan and Bank of America, increased their reserves significantly at the beginning of the Covid-19 crisis in anticipation of imminent loan defaults, but with the government stimulus and perhaps a more resilient economy than many would have guessed, actual loan losses are up only slightly. They might happen later in 2021, but with an additional stimulus package and the vaccine rolling out, the large-scale losses may not be as bad as most people predicted. The bigger drag on the banks’ earnings power is lower rates, which in our opinion will persist for a long time. Despite this drag, we estimate both JPMorgan and Bank of America will continue to grow revenue and earnings over the next few years, while we believe their stocks remain bargains in a somewhat expensive market. JPMorgan’s earnings per share declined 17% last year, and its stock returned -5.5%. Bank of America’s earnings, which are more sensitive to interest rates, were down 32%, and its stock returned -11.6%.”
4. Berkshire Hathaway Inc. (NYSE: BRK-A)
Number of Hedge Fund Holders: 111
Berkshire Hathaway Inc. (NYSE: BRK-A) is a Nebraska-based holding firm with stakes in several large businesses, including insurance. It is ranked fourth on our list of 15 best financial stocks to buy now. The company’s shares have returned 44% to investors over the past twelve months. The firm has a market cap of over $640 billion and posted more than $245 billion in revenue last year. The firm recently bought a $500 million stake in Brazilian financial services firm Nu Pagamentos SA.
On May 3, Berkshire Hathaway Inc. (NYSE: BRK-A) chief Warren Buffett told news platform CNBC that Warren Buffett confirmed to CNBC that Greg Abel, the vice chair at the firm, would succeed him at the company, ending possible speculation around his business successor.
At the end of the first quarter of 2021, 111 hedge funds in the database of Insider Monkey held stakes worth $19 billion in Berkshire Hathaway Inc. (NYSE: BRK-A), up from 110 in the preceding quarter worth $20 billion.
In its Q1 2021 investor letter, Vltava Fund, an asset management firm, highlighted a few stocks and Berkshire Hathaway Inc. (NYSE: BRK-A) was one of them. Here is what the fund said:
“Despite the considerable rise in stock markets over the past year, there are still many attractive opportunities. Human nature also is playing a bit into our hands. Investor crowds often chase popular stocks, hot IPOs, or mysterious SPACs and completely leave aside stocks they consider boring and not sexy enough. A typical example of this category is our long-term largest position in Berkshire Hathaway. Since we bought it for the first time, its price has nearly quadrupled and yet it remains just as undervalued today as it was at that time. Considering the current rate at which it is buying back its own shares and the amount of cash that Berkshire Hathaway has, my greatest wish as a shareholder is for the company’s share price to remain as low as possible for as long as possible.”
3. PayPal Holdings, Inc. (NASDAQ: PYPL)
Number of Hedge Fund Holders: 143
PayPal Holdings, Inc. (NASDAQ: PYPL) is placed third on our list of 15 best financial stocks to buy now. The stock has returned 47% to investors over the past year. The firm markets digital payments services and is based in California. On July 28, the firm posted earnings for the second quarter, reporting earnings per share of $1.15, beating market predictions by $0.03. The revenue over the period was $6.2 billion, up more than 18% compared to the revenue over the same period last year.
On July 29, investment advisory Morgan Stanley maintained an Overweight rating on PayPal Holdings, Inc. (NASDAQ: PYPL) stock and raised the price target to $340 from $337, singling out engagement and acceptance expansion as future growth indicators for the firm.
At the end of the first quarter of 2021, 143 hedge funds in the database of Insider Monkey held stakes worth $14.7 billion in PayPal Holdings, Inc. (NASDAQ: PYPL), down from 147 in the preceding quarter worth $15.9 billion.
In its Q4 2020 investor letter, Polen Capital Management, an asset management firm, highlighted a few stocks and PayPal Holdings, Inc. (NASDAQ: PYPL) was one of them. Here is what the fund said:
“For the full year 2020, one of the top performers was PayPal, which we purchased in 2019, the company continues to take market share in digital payments and has seen an acceleration in user adoption and engagement, especially within their “silver tech” or older user demographic. We expect many more years of ongoing double-digit growth from their various business segments and new initiatives.”
2. Mastercard Incorporated (NYSE: MA)
Number of Hedge Fund Holders: 151
Mastercard Incorporated (NYSE: MA) is a New York-based firm that markets payments processing services. It is ranked second on our list of 15 best financial stocks to buy now. The company’s shares have offered investors returns exceeding 26% over the course of the past year. In earnings results for the second quarter, posted on July 29, the firm reported earnings per share of $1.95, beating market estimates by $0.20. The revenue over the period was $4.5 billion, up 36% year-on-year.
On July 15, investment advisory Evercore ISI maintained an Outperform rating on Mastercard Incorporated (NYSE: MA) stock with a price target of $439, adding the firm to the 2021 Top Payments Picks List and to the Tactical Outperform List.
Out of the hedge funds being tracked by Insider Monkey, Virginia-based investment firm Akre Capital Management is a leading shareholder in Mastercard Incorporated (NYSE: MA) with 5.8 million shares worth more than $2 billion.
In its Q4 2020 investor letter, Bretton Fund, an asset management firm, highlighted a few stocks and Mastercard Incorporated (NYSE: MA) was one of them. Here is what the fund said:
“While consumers resumed much of their spending by summer, what and how they used their Visas and Mastercards changed. For obvious reasons, people shifted to contactless payments—one of the Covid-era changes we think is permanent—and replaced travel purchases with online shopping and food delivery. Consumers spent more on their debit cards and less on their credit cards; Visa and Mastercard make more per transaction on the latter. They also make more on cross-border transactions that come mostly from international travel, which ground to a halt early in the pandemic. Visa’s and Mastercard’s earnings per share fell by 7% and 16%, respectively, compared to their usual mid-teens growth. We’re not too worried, and we think they’ll catch up nicely in the post-vaccine world. Visa’s stock returned 17.1% and Mastercard’s 20.2%.”
1. Visa Inc. (NYSE: V)
Number of Hedge Fund Holders: 164
Visa Inc. (NYSE: V) stock has offered investors returns exceeding 28% over the course of the past twelve months. It is placed first on our list of 15 best financial stocks to buy now. The company is based in California and provides payments technology services. On July 27, the firm posted earnings for the third quarter, reporting earnings per share of $1.49, beating market predictions by $0.14. The revenue over the period was $6.1 billion, up 26% year-on-year and beating estimates by $270 million.
On July 28, investment advisory Wedbush maintained an Outperform rating on Visa Inc. (NYSE: V) stock and raised the price target to $270 from $250, underlining improvements in credit volume and travel that were expected to benefit the company.
At the end of the first quarter of 2021, 164 hedge funds in the database of Insider Monkey held stakes worth $26.5 billion in Visa Inc. (NYSE: V), down from 166 in the preceding quarter worth $23.5 billion.
In its Q1 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Visa Inc. (NYSE: V) was one of them. Here is what the fund said:
“To make room for these new names with more attractive outlooks related to the reopening, we sold out of companies where the thesis is not playing out at the pace we expected including Visa.”
You can also take a peek at 15 Best Value Stocks to Invest In and 15 Best Consumer Discretionary Stocks to Buy Now.
