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#1: JP Morgan Chase & Co.
Leading the pack of financial stocks poised to take a dramatic shift upwards, is global financial services behemoth, JP Morgan Chase & Co. Not short of having a remarkable lineage of success, the banking industry stalwart has always been one of Wall Street’s favorite shares.
The firm has efficiently weathered the storm of the pandemic, primarily due to its diversified business model with a healthy mix of investment and commercial banking. JP Morgan Chase & Co. exhibited solid results in the last quarter with its revenues reaching $30.13 billion, beating the estimates with an upside surprise of roughly 6%.
Additionally, with interest rates set to rise in the future, JP Morgan’s net interest income is expected to gain, improving the company’s overall earnings. The company also carries an excellent capital position with significant liquidity, which would be beneficial as it navigates through the economic uncertainties and invests in strategic growth initiatives.
#2: Goldman Sachs Group
Another strong candidate in the financial sector showing signs of an imminent bullish trend is the Goldman Sachs Group. A major worldwide investment banking, securities, and management firm, Goldman Sachs has demonstrated robust performance in recent years, making it a go-to choice for investors eyeing potential growth.
In Q4 of 2021, the company’s trading revenue surged by 63% year-off-year to $4.27 billion, with strong performances in equities and FICC (Fixed Income, Commodity, and Currency) divisions. The company’s digital banking platform, Marcus, has also exhibited solid growth, dovetailing into its plan to expand consumer banking.
#3: Visa Inc.
Visa Inc., the third titan in our trio of strong financial stocks, is a global leader in digital payment technology. Visa’s extensive network, steady cash flow, and ongoing advances into new payment technologies keep it at the apex of investment choices in the financial sector.
In its last quarterly earnings report, Visa exceeded expectations with its earnings per share reaching $1.38, over an 11% increase, While its revenue rose to $6.1 billion, beating the estimates. Besides, the company’s push into emerging markets, its partnerships with fintech firms, and its continuous innovations in digital payments are likely to boost future growth.
Additionally, Visa’s solid balance sheet, potential for strong earnings growth, and increased demand for cashless transactions amid the pandemic make it a promising candidate for investors looking for growth in the financial sector
