In this article, we will take a look at the top 5 financial stocks today. For a detailed analysis of these companies, go directly to the Top 10 Financial Stocks Today.
5. Coinbase Global, Inc. (NASDAQ: COIN)
Number of Hedge Fund Holders: N/A
Coinbase Global, Inc. (NASDAQ: COIN) is a Delaware-based cryptocurrency exchange firm. It is ranked fifth on our list of top 10 financial stocks today and was founded in 2012. Coinbase lets users deal in popular crypto currencies like Bitcoin and Ethereum, as well as others. The exchange went public last month at a blockbuster initial public offering, but share price has fallen over the past few days as retail investors looking to turn a quick profit on their investments abandon the ship. However, the core business of the firm bodes well for future growth.
Coinbase Global, Inc. (NASDAQ: COIN) stock was given an Outperform rating by investment advisory Oppenheimer on May 10 with a price target of $434. However, the share price of the firm still dropped close to 2% after the ratings update in tandem with an overall lull for the crypto industry in general throughout the market.
Despite initial misgivings, several hedge funds have disclosed holdings in crypto-related stocks in recent weeks, including Third Point LLC and Ark Investment Management, among others.
4. PayPal Holdings, Inc. (NASDAQ: PYPL)
Number of Hedge Fund Holders: 147
PayPal Holdings, Inc. (NASDAQ: PYPL) is a California-based online payments company founded in 1998. It is placed fourth on our list of top 10 financial stocks today. The firm is most famous for offering favorable exchange rates and giving users the option to maintain accounts in several different currencies at one time. Recently, the company announced that it would accept cryptocurrency payments and link them to its network. The share price of PayPal has been soaring as the pandemic leads to more digital money transfers around the world.
On May 5, PayPal Holdings, Inc. (NASDAQ: PYPL) posted earnings for the first quarter of 2021, reporting a revenue of more than $6 billion, beating market estimates by $130 million and up more than 30% compared to the revenue from the same period a year ago.
At the end of the fourth quarter of 2020, 147 hedge funds in the database of Insider Monkey held stakes worth $15.9 billion in the firm, down from 150 in the preceding quarter worth $11.5 billion.
3. S&P Global Inc. (NYSE: SPGI)
Number of Hedge Fund Holders: 75
S&P Global Inc. (NYSE: SPGI) is a New York-based financial information and analytics company founded in 1917. It is ranked third on our list of top 10 financial stocks today. The firm has ratings, market intelligence, and indexing divisions dedicated to providing finance professionals with research and market benchmarks. The company stock has returned more than 27% to investors over the past twelve months. The firm has dealings with all kinds of clients, including commercial banks, investment advisors, and corporations.
S&P Global Inc. (NYSE: SPGI) is a good option for income investors as it regularly pays a healthy dividend to shareholders. On March 5, the firm declared a quarterly dividend of $0.77 per share, in line with previous. The forward yield stood at 0.78%.
Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm Cantillon Capital Management is a leading shareholder in the firm with 2.5 million shares worth more than $853 million.
In its Q4 2020 investor letter, Baron Funds, an investment management firm, highlighted a few stocks and S&P Global Inc. (NYSE: SPGI) was one of them.
“S&P Global Inc. provides credit ratings, indices, data, and analytics to the financial and commodities markets. The company reported strong financial results due to continued growth in debt issuance. However, the stock declined on investor expectations that issuance will moderate in 2021 due to tough comparisons and potentially higher interest rates. Also, the company’s announced acquisition of IHS Markit received a mixed reaction, potentially due to the size and complexity of the combined company as well as overlapping ownership causing some shareholders to reduce concentration. We continue to own the stock as we see a long runway for growth and significant competitive advantages for the company.”
2. Visa Inc. (NYSE: V)
Number of Hedge Fund Holders: 166
Visa Inc. (NYSE: V) is a California-based company that primarily facilitates electronic money transfers. It was founded in 1958 and is placed second on our list of top 10 financial stocks today. The company offers debit cards, credit cards, and other financial services under brands like Visa, Visa Electron, Interlink, VPAY, and PLUS. Visa stock has returned more than 26% to investors over the past year. Visa also operates the popular VisaNet, a transaction processing network making digital payments easier for businesses.
On April 28, Visa Inc. (NYSE: V) stock jumped more than 2% on the back of strong fiscal quarter earnings that beat market estimates on revenue and earnings per share. Net revenue for the fiscal quarter ended March 31 was $5.73 billion, beating market forecasts of $5.5 billion.
At the end of the fourth quarter of 2020, 166 hedge funds in the database of Insider Monkey held stakes worth $23.5 billion in the firm, up from 160 in the preceding quarter worth $18.6 billion.
In its Q1 2021 investor letter, Wedgewood Partners, an investment management firm, highlighted a few stocks and Visa Inc. (NYSE: V) was one of them.
“Visa payment volume recovered along with consumer spending habits, finishing up +5% during the December quarter; but it skewed heavily toward online purchases, particularly with debit. Historically, Visa has had a meaningful portion of its volume derived from higher-yielding credit card spending related to cross-border travel and entertainment (T&E). As many countries maintain closed borders, Visa’s cross-border T&E segment has stayed depressed. However, we expect this business will rebound as borders inevitably reopen to COVID-19 vaccinated populations. In the meantime, we trimmed Visa to help fund a reestablished position in Booking Holdings, which should disproportionately benefit from the aforementioned reopening as well.”
1. Berkshire Hathaway Inc. (NYSE: BRK-A)
Number of Hedge Fund Holders: 110
Berkshire Hathaway Inc. (NYSE: BRK-A) is a Nebraska-based holdings company founded in 1839. It is ranked first on our list of top 10 financial stocks today. Although the company has stakes in several large companies, the core business remains dealings in insurance financials. Berkshire stock has returned more than 64% to investors over the past year. The firm is controlled by legendary investors Warren Buffett and Charlie Munger. The share price of the company has jumped close to 12% over the past few weeks as the economy reopens.
On May 3, Berkshire Hathaway Inc. (NYSE: BRK-A) chief Buffett told an American news outlet that energy tycoon Greg Abel would be his successor at the firm. Abel presently leads the non-insurance business dealings of the group.
Out of the hedge funds being tracked by Insider Monkey, Washington-based Bill & Melinda Gates Foundation Trust is a leading shareholder in the firm with 42.1 million shares worth more than $9.7 billion.
In its Q1 2021 investor letter, Vltava Fund, an investment management firm, highlighted a few stocks and Berkshire Hathaway Inc. (NYSE: BRK-A) was one of them.
“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.”
You can also take a peek at 10 Best Travel Stocks to Buy Right Now, and 10 Best Automotive Stocks to Invest in Now.
