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U.S. Financials Sector Analysis

UpdatedJan 12, 2026
DataAggregated Company Financials
Companies1405
  • 7D-0.2%
  • 3M4.7%
  • 1Y17.3%
  • YTD1.7%

In the last week, the Financials industry is up 1.7%, with Mastercard leading the way with a 2.2% gain. In the same time, American International Group was down 10%. This takes the industry's 12 month performance to a gain of 18%. Looking forward, earnings are forecast to grow by 11% annually.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Mon, 12 Jan 2026US$10.7tUS$3.2tUS$551.9b12.9x19.4x3.4x
Wed, 10 Dec 2025US$10.2tUS$3.2tUS$552.5b12.6x18.5x3.2x
Fri, 07 Nov 2025US$10.1tUS$3.2tUS$553.3b12.1x18.2x3.2x
Sun, 05 Oct 2025US$10.4tUS$3.3tUS$517.3b12.9x20.1x3.1x
Tue, 02 Sep 2025US$10.4tUS$3.3tUS$518.1b13.1x20.1x3.1x
Thu, 31 Jul 2025US$10.1tUS$3.0tUS$534.5b12.5x18.9x3.3x
Sat, 28 Jun 2025US$9.8tUS$3.0tUS$525.6b12.8x18.6x3.2x
Mon, 26 May 2025US$9.4tUS$3.0tUS$523.9b12.4x18x3.1x
Wed, 23 Apr 2025US$8.6tUS$3.0tUS$549.1b11.6x15.7x2.9x
Fri, 21 Mar 2025US$9.4tUS$3.0tUS$544.7b12.2x17.3x3.2x
Sun, 16 Feb 2025US$9.9tUS$3.0tUS$558.2b12.7x17.8x3.4x
Tue, 14 Jan 2025US$9.1tUS$2.9tUS$503.2b12.4x18.1x3.1x
Thu, 12 Dec 2024US$9.6tUS$2.9tUS$504.7b13.7x19x3.3x
Sat, 09 Nov 2024US$9.4tUS$2.9tUS$504.5b13.2x18.6x3.2x
Mon, 07 Oct 2024US$8.8tUS$2.8tUS$467.0b12.4x18.8x3.1x
Wed, 04 Sep 2024US$8.7tUS$2.8tUS$466.0b12.4x18.7x3.1x
Fri, 02 Aug 2024US$8.4tUS$2.8tUS$470.7b12.3x17.9x3x
Sun, 30 Jun 2024US$7.9tUS$2.8tUS$462.9b10.8x17x2.8x
Tue, 28 May 2024US$8.0tUS$2.8tUS$463.3b10.9x17.2x2.9x
Thu, 25 Apr 2024US$7.9tUS$2.7tUS$477.4b10.8x16.5x2.9x
Sat, 23 Mar 2024US$7.9tUS$2.7tUS$472.9b10.8x16.8x2.9x
Mon, 19 Feb 2024US$7.6tUS$2.7tUS$436.5b10.6x17.4x2.8x
Wed, 17 Jan 2024US$7.4tUS$2.7tUS$439.4b11.1x16.7x2.7x
Fri, 15 Dec 2023US$7.3tUS$2.7tUS$446.7b11.5x16.3x2.7x
Sun, 12 Nov 2023US$6.6tUS$2.7tUS$447.0b10.6x14.7x2.4x
Tue, 10 Oct 2023US$6.5tUS$2.7tUS$430.9b10.3x15x2.4x
Thu, 07 Sep 2023US$6.7tUS$2.7tUS$430.8b10.6x15.5x2.5x
Sat, 05 Aug 2023US$6.9tUS$2.6tUS$351.0b11.1x19.5x2.6x
Mon, 03 Jul 2023US$6.5tUS$2.6tUS$342.8b10.5x19.1x2.5x
Wed, 31 May 2023US$6.2tUS$2.6tUS$341.1b10.4x18.2x2.4x
Fri, 28 Apr 2023US$6.4tUS$2.6tUS$320.0b10.2x19.8x2.5x
Sun, 26 Mar 2023US$6.1tUS$2.6tUS$319.5b10.6x19.1x2.4x
Tue, 21 Feb 2023US$5.8tUS$2.4tUS$336.4b11.8x17.3x2.4x
Thu, 19 Jan 2023US$5.6tUS$2.4tUS$360.4b11.6x15.6x2.3x
Price to Earnings Ratio

15.6x


Total Market Cap: US$5.6tTotal Earnings: US$360.4bTotal Revenue: US$2.4tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Financials Sector Price to Earnings3Y Average 17.7x202420252026
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 17.7x.
  • The 3-year average PS ratio of 2.9x is lower than the industry's current PS ratio of 3.4x.
Past Earnings Growth
  • The earnings for companies in the Financials industry have grown 15% per year over the last three years.
  • Revenues for these companies have grown 9.4% 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 Market1.24%
Financials-0.18%
Mortgage REITs1.92%
Diversified Financial0.54%
Mortgage Finance0%0
Banks-0.22%
Capital Markets-0.45%
Consumer Finance-0.46%
Insurance-0.98%
Industry PE
  • Investors are most optimistic about the Capital Markets industry, which is trading close to its 3-year average PE ratio of 25.6x.
    • Analysts are expecting annual earnings growth of 12.1%, which is lower than the prior year's growth of 15.6% per year.
  • Investors are most pessimistic about the Insurance industry, which is trading below its 3-year average of 18.7x.
Forecasted Growth
  • Analysts are most optimistic on the Mortgage REITs industry, expecting annual earnings growth of 35% over the next 5 years.
  • This is better than its past earnings decline of 6.6% per year.
  • In contrast, the Insurance industry is expected to see its earnings grow by 6.6% per year over the next few years.

Top Stock Gainers and Losers

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

CompanyLast Price7D1YValuation
MA MastercardUS$575.541.2%
+US$6.3b		14.0%PE36.3x
RKT Rocket CompaniesUS$23.2910.4%
+US$6.2b		123.5%PS10.8x
SPGI S&P GlobalUS$541.941.7%
+US$2.7b		12.3%PE38.9x
AFRM Affirm HoldingsUS$81.8010.5%
+US$2.6b		47.9%PE115.8x
CPAY CorpayUS$331.5010.3%
+US$2.2b		-4.8%PE22.1x

Latest News

AFRM
US$81.80
Affirm Holdings
7D
10.5%
1Y
47.9%

AFRM: Future Returns Will Depend On Execution In A Tougher Credit Cycle

Analysts have inched their fair value estimate for Affirm Holdings higher to roughly US$64.50 per share, citing updated sector views on buy now pay later growth, refined profit margin expectations, and adjusted P/E assumptions that align with recent price target changes across the specialty finance group. Analyst Commentary Recent Street research presents a mixed backdrop for Affirm, with some firms reaffirming positive views on the broader buy now pay later theme while trimming individual price targets for the stock.
CG
US$65.41
Carlyle Group
7D
7.5%
1Y
30.0%

CG: Future Sanctioned Asset Pursuit Will Undermine Already Stretched Pricing

Analysts have trimmed their fair value estimate for Carlyle Group from $56.00 to $53.00, citing updated assumptions that include a higher discount rate, a change from a 2.59% revenue contraction to 24.74% growth, a profit margin increase from 31.92% to 36.02%, and a lower future P/E expectation from 16.76 to 11.09. What's in the News Carlyle is reported to be interested in the foreign assets of PJSC LUKOIL, a Russian oil company under U.S. sanctions, and is considering seeking a U.S. licence to talk about a potential deal, with no due diligence conducted so far and no assurance the discussions will move ahead (Financial Times via SeeNews).
MA
US$575.54
Mastercard
7D
1.2%
1Y
14.0%

MA: Digital And Cross-Border Payment Shifts Will Drive Future Upside

Analysts have nudged their fair value estimate for Mastercard higher to about $661, reflecting modest tweaks to discount rate, revenue growth, and future P/E assumptions as they respond to a series of higher Street price targets grounded in solid results and ongoing benefits from the shift toward digital payments. Analyst Commentary Recent research updates on Mastercard point to a generally constructive tone, with several firms lifting price targets and initiating coverage at favorable ratings.
SCHW
US$100.17
Charles Schwab
7D
-3.4%
1Y
37.9%

SCHW: Forge Global Deal And Capital Returns Will Drive Bullish Upside

Analysts have modestly raised their fair value estimate for Charles Schwab to $115.95 from $112.79, pointing to refreshed price targets across the Street, slightly higher modeled revenue growth, profit margin and future P/E, along with resilient client engagement and trading activity. Analyst Commentary Street research on Charles Schwab has tilted more positive, with several firms lifting their price targets and pointing to what they see as solid execution, healthy client activity, and scope for better capital returns.
SPGI
US$541.94
S&P Global
7D
1.7%
1Y
12.3%
FISV
US$69.85
Fiserv
7D
4.3%
1Y
-65.3%
JPM
US$329.19
JPMorgan Chase
7D
-1.5%
1Y
34.8%
BLK
US$1,085.10
BlackRock
7D
-3.1%
1Y
13.6%
BX
US$157.62
Blackstone
7D
-2.9%
1Y
-4.9%
V
US$349.77
Visa
7D
-1.1%
1Y
14.0%

V: Stablecoin Expansion And Cross Border Strength Will Sustain Defensible Network Moat

Analysts have made a modest upward adjustment to their fair value estimate for Visa to about US$395.85. This change is supported by recent initiations that highlight the company's network scale, central role in payments processing, and strong cross border trends as key factors for their higher price targets.
C
US$121.32
Citigroup
7D
-1.6%
1Y
66.7%
AIG
US$75.43
American International Group
7D
-10.6%
1Y
6.5%
HOOD
US$115.27
Robinhood Markets
7D
-6.5%
1Y
191.2%
ALL
US$212.21
Allstate
7D
3.2%
1Y
16.3%

ALL: Lower Margins And Catastrophe Losses Will Pressure Future Upside

Analysts have adjusted their price target for Allstate slightly lower to about US$177 from roughly US$177, citing updated assumptions around higher discount rates, a change in expected revenue growth, a reduced profit margin outlook, and a higher future P/E multiple. What's in the News Allstate estimated October 2025 catastrophe losses of $83 million, or $65 million after tax, tied to five wind and hail events (Corporate Guidance, Unusual Events).
RKT
US$23.29
Rocket Companies
7D
10.4%
1Y
123.5%

RKT: Higher Future P/E Will Support Stronger Long Term Earnings Power

Analysts have raised their price target on Rocket Companies to US$25.00. The update reflects adjusted views on discount rates, revenue growth, profit margins and a higher future P/E assumption, which together reshape how they are valuing the stock today.
CPAY
US$331.50
Corpay
7D
10.3%
1Y
-4.8%

CPAY: Share Repurchases And Mastercard Stake Will Support Future Upside Potential

Narrative Update on Corpay Analysts have trimmed their Corpay price target to $342 from $380, reflecting slightly higher assumed discount rates, a modestly higher future P/E multiple, and ongoing concerns that stablecoin related pressure on growth and margins could linger for the next few quarters despite a "nice beat and raise" in Q3. Analyst Commentary Recent commentary around Corpay highlights a mix of confidence in execution and caution on valuation, with the reduced price target to $342 reflecting that balance.