Financial institutions play a critical role, offering everything from consumer banking to wealth management and specialized financial solutions. But uncertainty about fiscal and monetary policy has tempered enthusiasm, and over the past six months, the industry has pulled back by 1.9%. This drop is a far cry from the S&P 500’s 8.4% ascent.
Despite the lackluster result, a few diamonds in the rough can produce earnings growth no matter what, and we started StockStory to help you find them. With that said, here is one financials stock boasting a durable advantage and two that may face trouble.
Two Financials Stocks to Sell:
Perella Weinberg (PWP)
Market Cap: $1.10 billion
Founded in 2006 by veteran investment bankers Joseph Perella and Peter Weinberg during a wave of boutique advisory firm launches, Perella Weinberg Partners (NASDAQ: PWP) is a global independent advisory firm that provides strategic and financial advice to corporations, financial sponsors, and government institutions.
Why Is PWP Risky?
- Sales trends were unexciting over the last five years as its 2.9% annual growth was below the typical financials company
- Earnings per share have dipped by 25.6% annually over the past four years, which is concerning because stock prices follow EPS over the long term
- Negative return on equity shows management lost money while trying to expand the business
Perella Weinberg’s stock price of $15.40 implies a valuation ratio of 1.7x forward price-to-sales. Check out our free in-depth research report to learn more about why PWP doesn’t pass our bar.
Fiserv (FISV)
Market Cap: $28.29 billion
Powering over 1 billion accounts and processing more than 12,000 financial transactions per second globally, Fiserv (NASDAQ: FISV) provides payment processing and financial technology solutions that enable merchants, banks, and credit unions to accept payments and manage financial transactions.
Why Do We Avoid FISV?
- Large revenue base makes it harder to increase sales quickly, and its annual revenue growth of 4.1% over the last two years was below our standards for the financials sector
- Annual earnings per share growth of 2.8% underperformed its revenue over the last two years, showing its incremental sales were less profitable
- Below-average return on equity indicates management struggled to find compelling investment opportunities
At $53.76 per share, Fiserv trades at 6.5x forward P/E. Read our free research report to see why you should think twice about including FISV in your portfolio.
One Financials Stock to Buy:
Jack Henry (JKHY)
Market Cap: $8.95 billion
Founded in 1976 by two entrepreneurs who saw the need for specialized banking software in the early days of financial computing, Jack Henry & Associates (NASDAQ: JKHY) provides technology solutions that help banks and credit unions innovate, differentiate, and compete while serving the evolving needs of their accountholders.
Why Will JKHY Beat the Market?
- Decent 7.7% annual revenue growth over the last five years beat most of its peers, showing customers find value in its products and services
- Share repurchases over the last two years enabled its annual earnings per share growth of 17.5% to outpace its revenue gains
- ROE punches in at 24.1%, illustrating management’s expertise in identifying profitable investments
Jack Henry is trading at $128.82 per share, or 18.3x forward P/E. Is now the right time to buy? 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 meet near-term momentum — both boxes checked at the same time.
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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 Kadant (+351% five-year return). Find your next big winner with StockStory today.
