Financial Sector Outpaces S&P 500 as COF, TFC, UPST, and BRK-B Lead Weekly Screen
The Fidelity® MSCI Financials ETF (FNCL) has returned 52.88% over the past 12 months, outpacing the S&P 500's total return of 32.84%, as a Benzinga screen surfaces Capital One Financial, Truist Financial Corporation, Upstart Holdings, and Berkshire Hathaway as the week's top picks across value, growth, momentum, and search-trend categories. The financial sector spans insurance, money management, payments, and digital banking, and counts Morgan Stanley, American Express, and Bank of America among its largest constituents.
The Fidelity® MSCI Financials ETF (FNCL) has returned 52.88% over the past 12 months, outpacing the S&P 500's total return of 32.84%, as a Benzinga screen surfaces Capital One Financial, Truist Financial Corporation, Upstart Holdings, and Berkshire Hathaway as the week's top picks across value, growth, momentum, and search-trend categories. The financial sector spans insurance, money management, payments, and digital banking, and counts Morgan Stanley, American Express, and Bank of America among its largest constituents.
Capital One Financial (COF): 6.49x P/E and a 50% Dividend Hike
Capital One Financial (NYSE: COF), headquartered in McLean, Virginia, claims the value rank with a current price-to-earnings ratio of 6.49. The lender — spun out of Signet Financial's credit card division in 1994 and now primarily engaged in credit card lending, auto loans, and commercial lending — carries a market capitalization of $126.41 billion on 616.02 million shares outstanding. The company recently raised its quarterly dividend by 50% and benefits from higher yield rates, per the Benzinga screen.
Truist Financial (TFC): 73.5% Earnings Growth, but Loan Demand Lags
Charlotte, North Carolina-based Truist Financial Corporation (NYSE: TFC), formed from the combination of BB&T and SunTrust, posted 73.5% earnings growth and 21% revenue growth in its most recent quarter — a rate the Benzinga screen notes as much higher than its competitors'. The regional bank operates commercial, retail, and investment banking alongside an insurance brokerage nonbank segment, and holds a $63.48 billion market cap on 1.25 billion outstanding shares. Fee income was a second-quarter bright spot; loan growth continued to prove elusive.
Upstart Holdings (UPST): AI Platform Targets $600M in 2021 Revenue
Upstart Holdings (NASDAQ: UPST), whose proprietary cloud-based AI lending platform connects consumer loan demand with a network of bank partners, leads the momentum category. Revenue is derived primarily from fees paid by those bank partners. Management projects full-year 2021 revenue of $600 million — which would represent more than 1,000% growth since 2017, per the Benzinga screen. Upstart carries a market capitalization of $3.09 billion on 95.71 million shares outstanding.
Berkshire Hathaway (BRK-B): Buybacks and Earnings Jump Fuel Search Traffic
Berkshire Hathaway Inc. (NYSE: BRK/B), the Warren Buffett-led holding company whose core insurance operations run through Geico, Berkshire Hathaway Reinsurance Group, and Berkshire Hathaway Primary Group, tops Benzinga's trending-ticker list among financial stocks. The search activity is attributed to a jump in operating earnings and announced stock buybacks. Berkshire's Class B shares traded at $489.13, up 0.27% on the session.