In the wake of recent Federal Reserve stress tests, some banks are looking better than others. While there are indeed some systemic risks to the financial sector, there are also opportunities for the very best players.
I watch more than 5,000 publicly traded companies with my tool, ranking companies by a number of fundamental and quantitative measures. And this week, I’ve identified nine financial stocks to buy.
Each one of these stocks gets an “A” or “B” according to my research, meaning it is a “strong buy” or “buy.” Here they are:
BlackRock (NYSE:) is an independent investment management firm. In the last year, BLK stock is up 10%. BlackRock stock gets a “B” grade for the magnitude in which earnings projections have increased over the past months. .
Mitsubishi UFJ Financial (NYSE:) is a Japanese holding company mainly engaged in the banking business. Mitsubishi Financial has posted a gain of 11% since this time last year. MTU stock gets a “B” grade for operating margin growth, a “B” grade for the magnitude in which earnings projections have increased over the past months, and an “A” grade for cash flow. .
U.S. Bancorp (NYSE:) provides its customers with lending and depository services, cash management, foreign exchange and trust and investment management services. Since this time last March, USB is up 19%. USB stock gets an “A” grade for operating margin growth, a “B” grade for earnings growth, a “B” grade for its ability to exceed the consensus earnings estimates on Wall Street, a “B” grade for the magnitude in which earnings projections have increased over the past months, an “A” grade for cash flow, and a “B” grade for return on equity. .
Sumitomo Mitsui Financial Group (NYSE:) is another Japanese financial services-related company to make the list. Sumitomo Financial has jumped 9% in the last 12 months. SMFG stock gets a “B” grade for earnings momentum, an “A” grade for the magnitude in which earnings projections have increased over the past months, and an “A” grade for cash flow in my Portfolio Grader tool. .
BB&T (NYSE:) owns the commercial banking subsidiary, Branch Banking and Trust Company, and has posted a gain of 16% since last March. BB&T stock gets an “A” grade for operating margin growth, an “A” grade for earnings growth, a “B” grade for earnings momentum, an “A” grade for the magnitude in which earnings projections have increased over the past months, and a “B” grade for cash flow.
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Banco de Chile (NYSE:) provides a range of credit and non-credit products and services to its Chilean customers. Banco de Chile is up 23% in the last 12 months. BCH stock gets an “A” grade for return on equity.
Credicorp (NYSE:) is involved with banking, pension funds, insurance and brokerage services. BAP stock has outpaced the broader markets with a gain of 21% in the last year. Credicorp stock gets a “B” grade for sales growth, a “B” grade for earnings momentum, a “B” grade for the magnitude in which earnings projections have increased over the past months, an “A” grade for cash flow, and an “A” grade for return on equity. .
American Express (NYSE:) is best known for its charge and credit payment card products. Since last March, American Express stock has gained 29%. AXP stock gets a “B” grade for operating margin growth, a “B” grade for earnings growth, a “B” grade for the magnitude in which earnings projections have increased over the past months, a “B” grade for cash flow, and an “A” grade for return on equity. .
Discover Financial Services (NYSE:) is also best known for its credit card service. Since last March, Discover stock has posted the biggest gain on this list at 45%. DFS stock gets an “A” grade for sales growth, a “B” grade for operating margin growth, an “A” grade for the magnitude in which earnings projections have increased over the past months, an “A” grade for cash flow, and an “A” grade for return on equity. .
