The collapse of two U.S. banks in March wreaked havoc in the market and particularly impacted the financial sector. Though fears related to the banking crisis have eased of late, longer-term investors should consider this recent selloff as a good entry point. 5 Best Financial Stocks to Invest in Now, According to Analysts – April 2023
Furthermore, most financial companies continue to benefit from higher interest rates. Additionally, M&A and trading activities are picking up steam and should benefit the financial industry.
To help investors select the best financial stocks from a wide universe, we have leveraged the TipRanks Stock Screener tool. These stocks have received a Strong buy rating from analysts and boast an Outperform Smart Score (i.e., 8, 9, or 10) on TipRanks, which points to their potential to beat the broader market. Further, analysts’ price targets reflect an upside potential of more than 20%.
Here are the five best financial stocks for investors to consider.
- Western Alliance (NYSE:WAL) – The company offers a wide range of commercial and business banking solutions. Its price forecast of $129.17 implies a nearly 40% upside from the current levels. Also, the stock has a Smart Score of eight.
- Interactive Brokers (NASDAQ:IBKR) – The automated electronic broker’s stock has an analyst consensus upside of 42.3%. IBKR stock has a Smart Score of nine.
- Tradeweb Markets (NASDAQ:TW) – The company builds and operates electronic over-the-counter marketplaces for trading fixed-income products, ETFs, and derivatives. TW stock’s price forecast of $83.60 implies a nearly 20.5% upside. Further, it has a Smart Score of eight.
- Affiliated Managers (NYSE:AMG) – AMG stock’s average price target implies a consensus upside of 26.8% and carries a Smart Score of nine. The asset management company has equity investments in a diverse group of investment management firms.
- W. R. Berkley (NYSE:WRB) – W.R. Berkley engages in the property and casualty insurance business. The stock has an average price target of $77.88, which implies a 34.7% upside potential from current levels. Also, its Smart Score of eight is encouraging.
TipRanks is the most comprehensive data set of sell side analysts and hedge fund managers. TipRanks’ multi-award winning platform ranks financial experts based on measured performance and the accuracy of their predictions so investors know who to trust when making investment decisions.
Nasdaq.com. “5 Best Financial Stocks to Invest in Now, according to Analysts – April 2023,” 2023. https://www.nasdaq.com/articles/5-best-financial-stocks-to-invest-in-now-according-to-analysts-april-2023.