Are Investors Bullish On These 2 Top Financial Stocks In 2020?
Financial stocks dropped once the ongoing pandemic began. In February, most financial stocks saw a significant dip. The COVID-19 outbreak is unlike anything we have seen in our lifetimes. Most industries shut down and people starting making and spending less money. This puts financial companies in a tricky spot when it comes to making a profit.
The second virus wave worries are affecting top financial stocks as well. The market for financial stocks is in a volatile spot. Financial stocks are reliant on the economy reopening to see their share price start to rise back up. Financial stocks rise up when there is positive news related to reopening businesses. There has been more businesses opening as time goes on. It goes as far as gyms and hair salons opening in many places. This is being accomplished with social distancing guidelines in place.
Financial stocks have seen large drops after negative press is released. This bad news can be anything from reopening delays to increased virus numbers. If a second spike of the coronavirus continues, the economy will be in big trouble once again. While being a speculative market, there is still money to be made with financial stocks. Let’s have a look at some trending financial stocks to watch.
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Top Financial Stocks To Buy [Or Sell] In July: MarketAxess Holdings
The first financial stock to watch, MarketAxess Holdings Inc. (MKTX Stock Report) just reached its all-time high in the share price. MarketAxess is an electronic trading platform that was founded in 2000. Based in New York, New York the company enables fixed-income market participants to trade corporate bonds and more. Currently, MarketAxess has around 450 employees. It is the market leader for the electronic trading of US corporate bonds. 20% of all corporate bond trading in the United States is done on its platform. In 2018 the company was valued at $8.5 billion.
The economic crisis did not have a grand effect on MKTX stock. At the most, MKTX stock dropped 16% over time during the stock market crash. This was a decrease of $335 a share to $281. Since then MKTX stock price has been able to recover and go much higher than it was previously. As of July 8th MKTX stock price is at $543 a share on average. If you start at the low that MKTX stock reached, then it went up 93% since then.
The recent momentum for MKTX stock makes it a potential financial stock to buy. Reaching a new high despite economic downfall is very good for MarketAxess. It is unsure if MKTX stock price will continue to climb as the market is volatile. But MKTX stock has been on an upward trend since April 2020 began.
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Top Financial Stocks To Buy [Or Sell] In July: PayPal
This next financial stock to watch, PayPal Holdings, Inc. (PYPL Stock Report) is a household name for many. PayPal is an American financial company with a large focus of online payments. Things like online money transfers, payment processing, and more are done by PayPal. Its profit is made by charging fees for its services. PayPal was founded in 1998 by 7 people, one of the more notable ones being Elon Musk. In 2019 PayPal ranked 204 on the Fortune 500 list. The Fortune 500 list ranks the largest US companies by revenue. In 2019, PayPal brought in over $17 billion in revenue alone.
Since e-commerce is on the rise due to the pandemic, so is PYPL stock. The reason for the recent rise of PYPL stock price is because of its many online services. Since people are buying online products more, which means PayPal is being used much more in many ways. Online money transfers are an easy way to send money to others who you can’t see in person anymore. PayPal is used to checkout on many e-commerce websites as well. Its payment processing services are used widely among many sites too. All of these contribute to PYPL stock rising up in the market.
So where is PYPL stock price at right now? The correct answer would be that PYPL stock is around a new record high. When the economy crashed, PYPL stock price dropped around 29%. Since then, PYPL stock has risen about 109%. This is an increase from $86 a share to $180 a share on average. That is what makes MKTX stock and PYPL stock potential financial stocks to buy. Keep an eye on the financial stock sector for what could be the next company to rise up in the market.