Financial providers use their expertise in capital allocation and risk assessment to help facilitate economic growth while offering consumers and businesses essential financial services. But uncertainty about fiscal and monetary policy has tempered enthusiasm, limiting the industry’s gains to 7.5% over the past six months. This return lagged the S&P 500’s 11% climb.
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 financials stocks boasting durable advantages and one we’re steering clear of.
One Financials Stock to Sell:
MSCI (MSCI)
Market Cap: $40.94 billion
Originally known as Morgan Stanley Capital International before becoming independent in 2007, MSCI (NYSE: MSCI) provides critical decision support tools, indexes, and analytics that help global investors understand risk and return factors and build more effective investment portfolios.
Why Do We Think Twice About MSCI?
- Negative return on equity shows management lost money while trying to expand the business
MSCI’s stock price of $563.43 implies a valuation ratio of 26.8x forward P/E. Dive into our free research report to see why there are better opportunities than MSCI.
Two Financials Stocks to Buy:
SoFi (SOFI)
Market Cap: $23.74 billion
Starting as a student loan refinancing company founded by Stanford business school students in 2011, SoFi Technologies (NASDAQ: SOFI) operates a digital financial platform offering lending, banking, investing, and other financial services to help members borrow, save, spend, invest, and protect their money.
Why Will SOFI Outperform?
- Annual revenue growth of 35.9% over the last two years was superb and indicates its market share increased during this cycle
- Incremental sales significantly boosted profitability as its annual earnings per share growth of 183% over the last two years outstripped its revenue performance
SoFi is trading at $18.35 per share, or 25.2x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
SEI Investments (SEIC)
Market Cap: $12.57 billion
Founded in 1968 as Simulated Environments Inc. to train bank loan officers using computer simulations, SEI Investments (NASDAQ: SEIC) provides technology platforms, investment management, and operational solutions for financial institutions, wealth managers, and investors.
Why Is SEIC a Good Business?
- 10.9% annual revenue growth over the last two years was better than the sector average, highlighting the value of its products and services
- Performance over the past two years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
- Industry-leading 26.5% return on equity demonstrates management’s skill in finding high-return investments
At $104.69 per share, SEI Investments trades at 15.9x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.
Stocks We Like Even More
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.
Our AI system flagged Palantir before it ran 1,662% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE.
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.
