Header cover image

U.S. Financials Sector Analysis

UpdatedDec 05, 2023
DataAggregated Company Financials
Companies1722
  • 7D2.8%
  • 3M5.1%
  • 1Y7.3%
  • YTD9.6%

In the last week, the Financials industry is up 2.8%, with JPMorgan Chase leading the way, up 3.1%. In the last 12 months, the industry was up 7.3%. As for the next few years, earnings are expected to grow by 7.7% per annum.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Tue, 05 Dec 2023US$7.0tUS$2.7tUS$446.3b11x15.8x2.6x
Thu, 02 Nov 2023US$6.3tUS$2.7tUS$442.3b10.3x14.2x2.3x
Sat, 30 Sep 2023US$6.6tUS$2.7tUS$430.6b10.3x15.2x2.5x
Mon, 28 Aug 2023US$6.6tUS$2.7tUS$430.9b10.5x15.4x2.5x
Wed, 26 Jul 2023US$6.9tUS$2.7tUS$348.9b11x19.8x2.6x
Fri, 23 Jun 2023US$6.4tUS$2.6tUS$341.2b10.4x18.9x2.5x
Sun, 21 May 2023US$6.3tUS$2.6tUS$341.0b10.3x18.4x2.4x
Tue, 18 Apr 2023US$6.5tUS$2.6tUS$324.3b10.7x20x2.5x
Thu, 16 Mar 2023US$5.0tUS$2.4tUS$307.4b10.7x16.4x2.1x
Sat, 11 Feb 2023US$5.8tUS$2.4tUS$342.5b11.8x17x2.4x
Mon, 09 Jan 2023US$5.6tUS$2.4tUS$369.2b11.6x15.2x2.3x
Wed, 07 Dec 2022US$5.6tUS$2.4tUS$368.3b11.7x15.1x2.3x
Fri, 04 Nov 2022US$5.5tUS$2.4tUS$389.1b11.5x14.1x2.3x
Sun, 02 Oct 2022US$5.0tUS$2.4tUS$408.2b11x12.2x2.1x
Tue, 30 Aug 2022US$5.4tUS$2.4tUS$397.5b11.5x13.7x2.3x
Thu, 28 Jul 2022US$5.4tUS$2.4tUS$489.6b11.5x10.9x2.2x
Sat, 25 Jun 2022US$5.2tUS$2.4tUS$513.6b10.7x10.1x2.1x
Mon, 23 May 2022US$5.5tUS$2.4tUS$514.2b11x10.7x2.3x
Wed, 20 Apr 2022US$6.3tUS$2.4tUS$537.3b12.1x11.6x2.6x
Fri, 18 Mar 2022US$6.5tUS$2.5tUS$558.2b11x11.7x2.6x
Sun, 13 Feb 2022US$6.7tUS$2.5tUS$549.6b10.9x12.3x2.7x
Tue, 11 Jan 2022US$6.9tUS$2.4tUS$542.1b11.4x12.8x2.9x
Thu, 09 Dec 2021US$6.9tUS$2.4tUS$542.3b10.9x12.7x2.8x
Sat, 06 Nov 2021US$6.9tUS$2.4tUS$558.4b11.2x12.4x2.9x
Mon, 04 Oct 2021US$6.4tUS$2.3tUS$541.4b11.3x11.9x2.8x
Wed, 01 Sep 2021US$6.2tUS$2.3tUS$539.4b11.1x11.5x2.7x
Thu, 08 Jul 2021US$6.1tUS$2.3tUS$536.8b10.9x11.4x2.6x
Wed, 31 Mar 2021US$5.6tUS$2.2tUS$436.2b11.5x12.8x2.6x
Sat, 02 Jan 2021US$4.8tUS$2.0tUS$264.2b11.7x18.1x2.4x
Price to Earnings Ratio

18.1x


Total Market Cap: US$4.8tTotal Earnings: US$264.2bTotal Revenue: US$2.0tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Financials Sector Price to Earnings3Y Average 14.4x20222023
Current Industry PE
  • Investors are relatively neutral on the American Financials industry at the moment, indicating that they anticipate long term growth rates to remain steady.
  • The industry is trading close to its 3-year average PE ratio of 14.4x.
  • The industry is trading close to its 3-year average PS ratio of 2.5x.
Past Earnings Growth
  • The earnings for companies in the Financials industry have grown 19% per year over the last three years.
  • Revenues for these companies have grown 11% 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?

US Market0.87%
Financials2.77%
Consumer Finance7.74%
Mortgage REITs5.90%
Banks5.27%
Capital Markets3.91%
Diversified Financial0.75%
Insurance0.17%
Mortgage Finance-1.07%
Industry PE
  • Investors are most optimistic about the Capital Markets industry which is trading above its 3-year average PE ratio of 20.7x.
    • Analysts are expecting annual earnings growth of 15.9%, which is higher than its past year's earnings growth of 5.2% per year.
  • Investors are most pessimistic about the Mortgage Finance industry, which is trading close to its 3-year average of 8.6x.
Forecasted Growth
  • Analysts are most optimistic on the Mortgage REITs industry, expecting annual earnings growth of 55% over the next 5 years.
  • This is better than its past earnings decline of 26% per year.
  • In contrast, the Banks industry is expected to see its earnings growth to stay flat over the next few years.

Top Stock Gainers and Losers

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

CompanyLast Price7D1YValuation
JPM JPMorgan ChaseUS$157.993.1%
+US$13.9b
20.3%PB1.6x
SCHW Charles SchwabUS$62.6411.9%
+US$12.2b
-22.9%PE20.6x
BAC Bank of AmericaUS$30.824.3%
+US$10.0b
-10.6%PB0.9x
WFC Wells FargoUS$45.124.9%
+US$7.6b
3.3%PB1x
AXP American ExpressUS$173.255.6%
+US$6.7b
11.0%PE16x
Simply Wall Street Pty Ltd (ACN 600 056 611), is a Corporate Authorised Representative (Authorised Representative Number: 467183) of Sanlam Private Wealth Pty Ltd (AFSL No. 337927). Any advice contained in this website is general advice only and has been prepared without considering your objectives, financial situation or needs. You should not rely on any advice and/or information contained in this website and before making any investment decision we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice. Please read our Financial Services Guide before deciding whether to obtain financial services from us.

Latest News

KKR

US$75.22

KKR

7D

8.9%

1Y

51.7%

BX

US$115.54

Blackstone

7D

8.2%

1Y

41.0%

AXP

US$173.25

American Express

7D

5.6%

1Y

11.0%

MS

US$81.21

Morgan Stanley

7D

4.2%

1Y

-9.6%

ACGL

US$81.99

Arch Capital Group

7D

-5.8%

1Y

38.6%

AJG

US$247.55

Arthur J. Gallagher

7D

-1.9%

1Y

25.8%

MMC

US$197.35

Marsh & McLennan Companies

7D

-1.4%

1Y

15.0%

EG

US$399.06

Everest Group

7D

-3.7%

1Y

20.7%

RNR

US$208.76

RenaissanceRe Holdings

7D

-5.3%

1Y

12.0%

LPLA

US$222.41

LPL Financial Holdings

7D

-3.6%

1Y

-0.5%