9 Best Financial Services Stocks To Buy Now

2. Apollo Global Management, Inc. (NYSE:APO)

Analysts’ Upside Potential: 15.59%

Renowned for its achievements in private equity, Apollo Global Management, Inc. (NYSE:APO) is among the biggest alternative asset managers globally. However, throughout the last 15 years, Apollo’s major growth driver has proven to be its investment-grade credit business, which is closely linked to the rise of its fully-owned insurance subsidiary, Athene.

Bank of America upgraded Apollo Global Management, Inc. (NYSE:APO) to “Buy” on August 5th, following a notable 20% decline in the company’s price earlier in the month. This drop came after the release of Q2 2024 earnings that were lower than expected and was accompanied by broader market worries over disappointing economic data and a dimming outlook for interest rates.

Apollo Global Management’s adjusted net income for the second quarter was unchanged, which fell short of Wall Street’s forecasts due to a decline in revenue from its retirement division offset by an increase in fees.

Apollo announced record-breaking quarterly fee-related earnings of $516 million for asset management and deal financing, up 16.7% YoY. Despite issues within the Athene unit, where profitability fell owing to decreased alternative investment income, the segment was able to raise $6 billion in cash, highlighting its strategic relevance.

Apollo has signed several agreements recently. It also secured an agreement to purchase International Game Technology’s gaming segment for a total of $6.3 billion in cash, along with Everi Holdings, a firm that makes slot machines, besides buying British parcel delivery company Evri for $3.5 billion. Additionally, Apollo invested $700 million in Sony Music Group.

Baron FinTech Fund stated the following regarding Apollo Global Management, Inc. (NYSE:APO) in its Q2 2024 investor letter:

“Strength in Tech-Enabled Financials was broad based, led by gains from alternative asset manager Apollo Global Management, Inc. (NYSE:APO) and specialty insurer Arch Capital Group Ltd. Apollo continues to benefit from disruptive trends in financial services, most notably the shift of retirement assets into higher-yielding private credit given the company’s dual role as an asset manager and an annuity provider. “

Nonetheless, it is the best financial services stock to buy right now since 14 analysts have collectively rated the stock as a “buy.” The average price objective of $122.5 indicates a possible gain of 15.59% from the current stock price of $105.98.