Financial firms serve as the backbone of the economy, providing essential services from lending and investment management to risk management and payment processing. Still, investors are uneasy as companies face challenges from an unpredictable interest rate and inflation environment. These doubts have caused the industry to lag recently as financials stocks have collectively shed 2.4% over the past six months. This performance is a noticeable divergence from the S&P 500’s 7.7% return.
Only some companies are subject to these dynamics, however, and a handful of high-quality businesses can deliver earnings growth in any environment. With that said, here are two resilient financials stocks at the top of our wish list and one we’re steering clear of.
One Financials Stock to Sell:
Intercontinental Exchange (ICE)
Market Cap: $86.31 billion
Starting as an energy trading platform in 2000 before acquiring the iconic New York Stock Exchange in 2013, Intercontinental Exchange (NYSE: ICE) operates global financial exchanges, clearing houses, and provides data services and mortgage technology solutions to financial institutions and corporations.
Why Are We Wary of ICE?
- Performance over the past five years shows its incremental sales were less profitable, as its 9% annual earnings per share growth trailed its revenue gains
At $153.32 per share, Intercontinental Exchange trades at 21.6x forward P/E. Dive into our free research report to see why there are better opportunities than ICE.
Two Financials Stocks to Watch:
Raymond James (RJF)
Market Cap: $31.26 billion
Founded in 1962 and headquartered in St. Petersburg, Florida, Raymond James Financial (NYSE: RJF) is a diversified financial services company that provides wealth management, investment banking, asset management, and banking services to individuals and institutions.
Why Do We Like RJF?
- Solid 11.7% annual revenue growth over the last five years indicates its offering’s solve complex business issues
- Performance over the past five years was boosted by share buybacks, which enabled its earnings per share to grow faster than its revenue
- Industry-leading 17.9% return on equity demonstrates management’s skill in finding high-return investments
Raymond James’s stock price of $158.31 implies a valuation ratio of 12.7x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
LPL Financial (LPLA)
Market Cap: $27.11 billion
As the nation's largest independent broker-dealer with no proprietary products of its own, LPL Financial (NASDAQ: LPLA) provides technology, compliance, and business support services to independent financial advisors and institutions who manage investments for retail clients.
Why Will LPLA Beat the Market?
- Annual revenue growth of 30% over the last two years was superb and indicates its market share increased during this cycle
- Incremental sales over the last five years have been highly profitable as its earnings per share increased by 25.5% annually, topping its revenue gains
- Market-beating return on equity illustrates that management has a knack for investing in profitable ventures
LPL Financial is trading at $341.45 per share, or 15.1x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.
Stocks We Like Even More
Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.
The names generating the next wave of massive growth are right here in our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
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-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
