Financial firms serve as the backbone of the economy, providing essential services from lending and investment management to risk management and payment processing. But worries about economic uncertainty and potential market volatility have kept sentiment in check, and over the past six months, the industry's 2.2% return has trailed the S&P 500 by 2.3 percentage points.
The elite companies can churn out earnings growth under any circumstance, however, and our mission at StockStory is to help you find them. Keeping that in mind, here are two resilient financials stocks at the top of our wish list and one best left ignored.
One Financials Stock to Sell:
MarketAxess (MKTX)
Market Cap: $6.01 billion
Pioneering the shift from phone-based to electronic bond trading since 2000, MarketAxess (NASDAQ: MKTX) operates electronic trading platforms that enable institutional investors and broker-dealers to efficiently trade fixed-income securities like corporate and government bonds.
Why Do We Avoid MKTX?
- Annual revenue growth of 4.2% over the last five years was below our standards for the financials sector
- Performance over the past five years shows its incremental sales were much less profitable, as its earnings per share fell by 1.3% annually
MarketAxess’s stock price of $168.87 implies a valuation ratio of 20.9x forward P/E. Dive into our free research report to see why there are better opportunities than MKTX.
Two Financials Stocks to Buy:
NerdWallet (NRDS)
Market Cap: $731.3 million
Born from founder Tim Chen's frustration with the lack of transparent credit card information when helping his sister in 2009, NerdWallet (NASDAQ: NRDS) is a digital platform that provides financial guidance to help consumers and small businesses make smarter decisions about credit cards, loans, insurance, and other financial products.
Why Should You Buy NRDS?
- Market share has increased this cycle as its 27.8% annual revenue growth over the last five years was exceptional
- Performance over the past two years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
At $10.92 per share, NerdWallet trades at 7.9x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.
Enova (ENVA)
Market Cap: $4.06 billion
Pioneering online lending since 2004 with a massive database of over 65 terabytes of customer behavior data, Enova International (NYSE: ENVA) provides online financial services including installment loans and lines of credit to non-prime consumers and small businesses in the United States and Brazil.
Why Is ENVA a Good Business?
- Market share has increased this cycle as its 23.8% annual revenue growth over the last five years was exceptional
- Share repurchases have amplified shareholder returns as its annual earnings per share growth of 38% exceeded its revenue gains over the last two years
- Impressive 16.1% annual book value per share growth over the last five years indicates it’s building equity value this cycle
Enova is trading at $162.81 per share, or 9.9x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
Stocks We Like Even More
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren't just high-quality businesses. Something is happening with them right now. Elite fundamentals meeting near-term momentum — both boxes checked at the same time.
Find out which stocks our AI platform is flagging this week. See this week's Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE.
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.
