4 Trending Financial Stocks For Your Watchlist This Week
With the June consumer price index coming in hot, rising at 9.1% versus the 8.8% estimate, many are expecting big rate hikes from the Fed. And some may assume that financial stocks could be benefiting. But the industry has failed to build momentum in the stock market so far this year. Fears of recession likely played a big part in these looming sentiments. That said, the sector may be deemed to be more resilient compared to other high-growth sectors. Now, bank stocks, in particular, will likely be in focus as Citi (NYSE: C) and JPMorgan (NYSE: JPM) will be reporting their earnings later this week. All eyes will be on these top financial companies as they set the tone for the second-quarter earnings session.
On top of that, Bank of America (NYSE: BAC) recently published a new article that shows consumer spending is still growing. The total aggregated Bank of America credit and debit card spending was up 11% year over year in June, compared to 13% and 9% in April and May year over year respectively. This goes to show that there are signs of resilience in consumer spending despite a backdrop of rising inflation. Considering all this, let’s take a look at four of the top financial stocks in the stock market today.
Financial Stocks To Watch This Week
- Wells Fargo & Co (NYSE: WFC)
- Morgan Stanley (NYSE: MS)
- PayPal Holdings Inc (NASDAQ: PYPL)
- Amerant Bancorp Inc (NASDAQ: AMTB)
First, let us look at the financial services company, Wells Fargo. Put simply, the company provides a diversified set of banking, investment, and mortgage products and services to consumers. Not to mention, it also provides financial solutions to businesses through products and services such as traditional commercial loans, asset-based lending, trade financing, and investment banking services. It is noteworthy that Wells Fargo recently appointed Kleber Santos as its CEO of Consumer Lending. Mr. Kleber is a proven leader and his experience will likely continue to strengthen the company’s position in the Consumer Lending space as it prepares for future growth.
In June, Wells Fargo announced the latest offering in its portfolio of consumer credit cards, the Wells Fargo Autograph Card. This new card follows the introduction of the Active Cash and Reflect Cards in 2021 and offers 3X points on top spending categories for everyday living expenses. This includes dining at restaurants, travel, gas, transit, and even streaming subscriptions. Additionally, this also solidifies the company’s partnership with Visa (NYSE: V) in the long term. Given all of this, should investors be jumping on the WFC stock bandwagon?
Similar to Wells Fargo, Morgan Stanley is another financial giant that would be no stranger to most. It provides a range of investment banking, wealth management, and investment management services. With operations in more than 41 countries, the bank serves clients such as corporations, governments, institutions, and individuals. After doubling its dividend last year, Morgan Stanley continues to raise its dividend this year. Last month, the company announced that it will increase its dividend by 11% and will continue to buy back its stock under a new $20 billion multi-year share repurchase authorization. Hence, it would not be surprising if investors are paying close attention to MS stock at its current valuation.
Furthermore, Morgan Stanley at Work also announced the acquisition of American Financial Systems (AFS). For those unaware, this is a recognized leading provider of nonqualified executive benefit plan solutions and service. This acquisition will add to its workplace’s offering spectrum that ranges from executive services, retirement plan guidance, and implementation, to equity compensation and financial wellness. After all, attracting and retaining top talent has always been a top priority for most companies today. With that in mind, would you be banking on the future of MS stock?
As financial services continue to evolve, a company such as PayPal will likely have a major role in the evolution of the financial sector. Essentially, PayPal is a technology platform that enables digital payments. It operates a global, two-sided network at a scale that connects merchants and consumers with 426 million active accounts across more than 200 markets. Its notable brands include PayPal, Hyperwallet, Venmo, Xoom, Zettle, and many more. In June, the company announced PayPal Pay Monthly. This is its newest buy now, pay later offering issued by WebBank. Its customers will have the choice to spread payments out over longer periods. Therefore, allowing greater flexibility and even more choices to pay for the items they want and need.
On top of that, PayPal has shown that it does not rest on its laurels. Not long ago, it announced the expansion of its suite of credit offerings to include a new business credit card. The PayPal Business Cashback Mastercard will be its first business credit card that aims to better meet the everyday financing needs of business owners. Also, the card has no annual fee and cardholders will be entitled to a 2% cashback on all purchases with no rewards earnings caps. Making it one of the highest cashback rewards values available in the market today. Considering these exciting developments, is PYPL stock still a top financial stock to watch?
Lastly, we have Amerant Bancorp. In detail, the company provides individuals and businesses an array of deposit, credit, investment, retail banking, and wealth management solutions. Currently, the bank operates in Florida and Texas. Having said that, the bank is constantly looking for opportunities to expand its presence. Last month, Amerant established a new commercial bank presence in the Greater Tampa Bay market. With the opening of an office at One Metro Center in MetWest International, the bank will provide a variety of transactional and business-related services.
Not to mention, the bank recently announced an expansive strategic partnership with the Miami HEAT basketball club. Thus, making it the “Official Bank of the Miami HEAT”. The multi-year partnership will support major drivers for growth such as marketing and business development opportunities. Some examples include the renaming of the premium North Lounge as the “Amerant Lounge”, and access to appearances by the Miami HEAT players. Considering the popularity of the National Basketball Association (NBA), such marketing opportunities do not come by easily. Thus, should AMTB stock make its way to the top of your watchlist?