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U.S. Financials Sector Analysis

UpdatedMay 22, 2024
DataAggregated Company Financials
Companies1307
  • 7D0.8%
  • 3M6.9%
  • 1Y32.9%
  • YTD11.1%

Last week, the Financials industry hasn't moved much but Chubb is up 5.7% in that time. As for the the longer term, the industry is up 33% over the past 12 months. As for the next few years, earnings are expected to grow by 7.6% per annum.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Thu, 23 May 2024US$8.0tUS$2.8tUS$463.2b11x17.4x2.9x
Sat, 20 Apr 2024US$7.6tUS$2.7tUS$474.3b10.4x16.1x2.8x
Mon, 18 Mar 2024US$7.8tUS$2.7tUS$473.0b10.5x16.4x2.9x
Wed, 14 Feb 2024US$7.4tUS$2.7tUS$433.8b10.4x17.1x2.7x
Fri, 12 Jan 2024US$7.4tUS$2.7tUS$447.7b11.2x16.6x2.7x
Sun, 10 Dec 2023US$6.9tUS$2.7tUS$446.6b11x15.4x2.6x
Tue, 07 Nov 2023US$6.6tUS$2.7tUS$437.4b10.7x15x2.4x
Thu, 05 Oct 2023US$6.5tUS$2.7tUS$430.9b10.2x15x2.4x
Sat, 02 Sep 2023US$6.8tUS$2.7tUS$435.0b10.7x15.7x2.6x
Mon, 31 Jul 2023US$6.9tUS$2.6tUS$351.1b11.3x19.6x2.6x
Wed, 28 Jun 2023US$6.4tUS$2.6tUS$341.2b10.4x18.8x2.5x
Fri, 26 May 2023US$6.2tUS$2.6tUS$341.5b10.3x18.1x2.4x
Sun, 23 Apr 2023US$6.5tUS$2.6tUS$323.5b10.5x20x2.5x
Tue, 21 Mar 2023US$5.0tUS$2.4tUS$307.0b10.6x16.4x2.1x
Thu, 16 Feb 2023US$5.9tUS$2.4tUS$341.3b11.8x17.2x2.5x
Sat, 14 Jan 2023US$5.8tUS$2.4tUS$368.6b11.7x15.6x2.4x
Mon, 12 Dec 2022US$5.5tUS$2.4tUS$369.3b11.7x14.9x2.3x
Wed, 09 Nov 2022US$5.5tUS$2.4tUS$381.7b11.7x14.4x2.3x
Fri, 07 Oct 2022US$5.2tUS$2.4tUS$408.3b11.2x12.7x2.2x
Sun, 04 Sep 2022US$5.3tUS$2.4tUS$397.6b11.4x13.4x2.2x
Tue, 02 Aug 2022US$5.4tUS$2.4tUS$482.9b11.7x11.3x2.3x
Thu, 30 Jun 2022US$5.2tUS$2.4tUS$513.6b10.9x10.2x2.2x
Sat, 28 May 2022US$5.9tUS$2.4tUS$514.2b11.1x11.5x2.4x
Mon, 25 Apr 2022US$6.0tUS$2.4tUS$535.7b12x11.2x2.5x
Wed, 23 Mar 2022US$6.7tUS$2.5tUS$557.3b11.1x12x2.6x
Fri, 18 Feb 2022US$6.7tUS$2.5tUS$550.0b10.9x12.1x2.7x
Sun, 16 Jan 2022US$6.9tUS$2.4tUS$548.8b11.4x12.6x2.8x
Tue, 14 Dec 2021US$6.8tUS$2.4tUS$542.2b10.8x12.6x2.8x
Thu, 11 Nov 2021US$6.9tUS$2.4tUS$542.0b11.2x12.6x2.8x
Sat, 09 Oct 2021US$6.6tUS$2.3tUS$541.4b11.4x12.2x2.8x
Mon, 06 Sep 2021US$6.2tUS$2.3tUS$537.1b10.9x11.6x2.7x
Wed, 04 Aug 2021US$6.0tUS$2.3tUS$538.4b10.7x11.1x2.6x
Price to Earnings Ratio

14.2x


Total Market Cap: US$6.2tTotal Earnings: US$438.3bTotal Revenue: US$2.2tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Financials Sector Price to Earnings3Y Average 14.5x202220232024
Current Industry PE
  • Investors are optimistic on the American Financials industry, and appear confident in long term growth rates.
  • The industry is trading at a PE ratio of 17.4x which is higher than its 3-year average PE of 14.5x.
  • The 3-year average PS ratio of 2.5x is lower than the industry's current PS ratio of 2.9x.
Past Earnings Growth
  • The earnings for companies in the Financials industry have remained mostly flat over the last three years.
  • Meanwhile revenues for these companies have grown 8.6% per year.
  • This means that although more sales are being generated, either the cost of doing business or the level of investment back into businesses has increased and as a result, profits have held steady.

Industry Trends

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

US Market1.25%
Financials0.77%
Capital Markets2.22%
Insurance0.84%
Diversified Financial0.36%
Banks0.19%
Mortgage Finance0%
Consumer Finance-0.80%
Mortgage REITs-1.03%
Industry PE
  • Investors are most optimistic about the Capital Markets industry which is trading above its 3-year average PE ratio of 21.3x.
    • Analysts are expecting annual earnings growth of 13.0%, which is higher than its past year's earnings growth of 6.2% per year.
  • Investors are most pessimistic about the Banks industry, although it looks like investor sentiment has improved given that it's trading above its 3-year average of 10.4x.
Forecasted Growth
  • Analysts are most optimistic on the Mortgage REITs industry, expecting annual earnings growth of 41% over the next 5 years.
  • This is better than its past earnings growth rate of 2.0% per year.
  • In contrast, the Diversified Financial 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
CB ChubbUS$267.445.7%
+US$9.5b		37.8%PE12.1x
BAC Bank of AmericaUS$39.762.2%
+US$6.6b		41.5%PB1.2x
BRK.A Berkshire HathawayUS$625.10k0.4%
+US$3.3b		28.5%PE12.2x
COIN Coinbase GlobalUS$231.515.3%
+US$2.8b		296.7%PE42.1x
MMC Marsh & McLennan CompaniesUS$210.822.2%
+US$2.4b		21.8%PE26.5x
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