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U.S. Financials Sector Analysis

UpdatedNov 28, 2021
DataAggregated Company Financials
Companies2002
  • 7D-1.2%
  • 3M2.0%
  • 1Y35.4%
  • YTD29.6%

Over the last 7 days, the Financials industry has dropped 1.2%, driven by a decline by American Express of 9.6%. This takes the industry's 12 month performance to a gain of 35%.

Sector Valuation and Performance

Has the U.S. Financials Sector valuation changed over the past few years?

DateMarket CapRevenueEarningsPE
Tue, 30 Nov 2021US$6.6tUS$2.4tUS$542.6b10.9x
Thu, 28 Oct 2021US$6.8tUS$2.4tUS$560.8b10.9x
Sat, 25 Sep 2021US$6.4tUS$2.3tUS$541.2b11x
Mon, 23 Aug 2021US$6.2tUS$2.3tUS$539.0b11x
Sat, 10 Jul 2021US$6.1tUS$2.3tUS$536.8b10.9x
Fri, 02 Apr 2021US$5.6tUS$2.2tUS$436.2b11.5x
Mon, 04 Jan 2021US$4.8tUS$2.0tUS$264.2b11.7x
Thu, 08 Oct 2020US$3.8tUS$1.9tUS$241.7b10.2x
Wed, 01 Jul 2020US$3.7tUS$1.9tUS$225.9b10.8x
Sat, 04 Apr 2020US$3.3tUS$2.0tUS$276.0b10x
Tue, 07 Jan 2020US$4.9tUS$2.0tUS$403.7b13.2x
Mon, 30 Sep 2019US$4.5tUS$2.0tUS$333.0b12.8x
Thu, 04 Jul 2019US$4.4tUS$1.9tUS$332.9b13.1x
Sun, 07 Apr 2019US$4.2tUS$1.9tUS$322.8b13.2x
Wed, 09 Jan 2019US$3.9tUS$1.9tUS$294.4b12.7x
PE Ratio

15.7x

Total Market Cap: US$4.4tTotal Earnings: US$328.9bTotal Revenue: US$1.9t0%0%0%3 Year10 Year
201920202021

Current Industry PE: Investors are relatively neutral on the industry at the moment, considering it's trading close to its 3-year average PE ratio of 12.0x. However, future earnings are expected to decline by 2.5% which could potentially cause the PE ratio to fall below its historical average.

Past Earnings Growth: The earnings for companies in the Financials industry have grown 18% per year over the last three years, and revenues for these companies have grown 8.5% per year. This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.

Industry Trends

Which industries have driven the changes within the U.S. Financials sector?

Diversified Financial0.90%
Insurance-0.79%
Banks-0.79%
Mortgage Finance-0.81%
Mortgage REITs-1.72%
Capital Markets-1.85%
Consumer Finance-4.92%

Industry PE: Investors are most optimistic about the Capital Markets industry even though it's trading below its 3-year average PE ratio of 21.1x. However analysts are expecting annual earnings growth of 3.1%, which is lower than the prior year's growth of 87% per year. So the market might believe that analysts are underestimating future growth. Meanwhile, investors are most pessimistic about the Consumer Finance industry, which is trading below its 3-year average of 8.5x.

Forecasted Growth: Analysts are most optimistic on the Mortgage REITs industry, expecting annual earnings growth of 4.5% over the next 5 years. Meanwhile, the Diversified Financial industry is expected to see its earnings decline by 32% per year over the next few years.

Top Stock Gainers and Losers

Which companies have driven the market over the last 7 days?

Company7D1YValuation
BRK.A Berkshire Hathaway1.1%+US$6.6b23.2%PE7.4x
JPM JPMorgan Chase0.6%+US$3.0b33.6%PB1.9x
BAC Bank of America0.8%+US$2.9b57.8%PB1.5x
PGR Progressive4.8%+US$2.5b7.0%PE13.7x
MS Morgan Stanley1.1%+US$1.8b53.4%PE12.3x
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