2020 Has Been A Rough Year For Financial Stocks. Is Now The Time For Value Investors To Buy Top Financial Stocks?
The economy is in a bad state to the surprise of nobody. Once the coronavirus pandemic started financial stocks took a large hit. Late February and March was the point in which most financial stocks fell to record lows. Things at that time were rather unsure than they are currently. People are making and spending less money during this time in the world so that causes top financial stocks to watch to be in trouble.
It is August and the virus is still spreading with no sign of it stopping any time soon. It isn’t likely for some financial stocks to be able to recover yet. But financial services that operate digitally like PayPal (PYPL Stock Report), and Square (SQ Stock Report) have been surging. When news is announced about a potential coronavirus vaccine, it is possible for financial stocks to rise. But with no feasible vaccine at the moment things are still in a rough state.
The increase of numbers and reclosing during the pandemic has slowed the economy too. Still, there are many financial stocks that are trending upwards in the market. The true state of financial stocks depends on how quickly the economy can come back. Now it is time to highlight 2 top financial stocks to watch in the market.
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Top Financial Stocks To Watch This Upcoming Week: 360 Finance
The first financial stock to watch is 360 Finance Inc. (QFIN Stock Report) due to its recent uptick. 360 Finance is a digital consumer finance platform. 360 Finance provides online consumer finance products to institutional funding partners. It also does credit assessment, collection, and defaulted loans. In a turn of events, QFIN stock was actually not much affected by the pandemic that started in 2020. 360 Finance’s platform was able to stay afloat and help as it is an online platform.
QFIN stock was at $8.40 a share on average at the start of 2020. Then when the pandemic occurred, QFIN price only fell about $1 to $7 a share. This 16.66% decrease was less than many other financial stocks had to deal with. Since then, QFIN stock price has been climbing. As of August 21st, QFIN stock is at $14.56 a share. QFIN stock price also reached a 52 week high on July 20th at $17.72 a share on average.
On Monday, August 24th, 360 Finance will be releasing second-quarter unaudited financial results. This has caused QFIN stock to jump 19.83% already. On the 19th QFIN stock price was at $12.15 a share and on the 21st it is at $14.56 a share. This earnings report could potentially cause QFIN stock to rise even more. That is why QFIN stock is on this list of 2 top financial stocks to watch.
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Top Financial Stocks To Watch This Upcoming Week: MoneyGram International Inc.
The following financial stock to watch is MoneyGram International Inc. (MGI Stock Report). MoneyGram is a financial company with a focus on money transfer. The Texas-based company has grown to be the second-largest money transfer financial company in the world. MoneyGram’s services are offered in over 200 countries worldwide. MoneyGram released second-quarter results on July 20th 2020. These results were rather positive causing MGI stock to rise.
MoneyGram’s digital transaction growth was 106% higher year over year in the second quarter. The company also reported a 14% decline in revenue due to the effects of the pandemic.
The CEO and Chairman of MoneyGram, Alex Holmes said in these reports, “We had a very strong quarter and materially outperformed on both the top and bottom-line, despite the continued global uncertainty from the COVID-19 pandemic.”
MGI stock price was at $2.65 a share before the pandemic. Despite the revenue loss, MGI stock has reached $3.20 a share in the market. This is a 20.75% increase in MGI stock price since February as of August 21st.
Bottom Line
If 360 Finance and MoneyGram’s programs keep growing, then QFIN stock and MGI stock will see the benefit of this. Both companies could see better numbers in Q3 of 2020, which could potentially continue to drive their stock price higher. That is why QFIN stock and MGI stock are 2 top financial stocks to watch before September 2020.
