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U.S. Financials Sector Analysis

UpdatedFeb 05, 2023
DataAggregated Company Financials
Companies1747
  • 7D1.5%
  • 3M7.5%
  • 1Y-9.0%
  • YTD7.9%

Over the last 7 days, the Financials industry has risen 1.5%, driven by gains in Charles Schwab and Bank of America of 5.8% and 2.8%, respectively. Meanwhile, Chubb actually underperformed within the industry, shrinking 7.7% in the last week. In the past year, the industry is down 9.0%. As for the next few years, earnings are expected to grow by 12% per annum.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sun, 05 Feb 2023US$5.9tUS$2.4tUS$348.5b11.9x16.9x2.4x
Tue, 03 Jan 2023US$5.5tUS$2.4tUS$369.1b11.4x14.8x2.3x
Thu, 01 Dec 2022US$5.8tUS$2.4tUS$369.1b12x15.7x2.4x
Sat, 29 Oct 2022US$5.5tUS$2.4tUS$390.2b11.6x14.2x2.3x
Mon, 26 Sep 2022US$5.1tUS$2.4tUS$408.5b11.3x12.5x2.1x
Wed, 24 Aug 2022US$5.5tUS$2.4tUS$401.2b11.7x13.8x2.3x
Fri, 22 Jul 2022US$5.4tUS$2.3tUS$496.6b11.3x10.9x2.3x
Sun, 19 Jun 2022US$5.1tUS$2.4tUS$513.5b10.5x9.9x2.1x
Tue, 17 May 2022US$5.6tUS$2.4tUS$515.6b11.4x10.8x2.3x
Thu, 14 Apr 2022US$6.2tUS$2.4tUS$554.2b11.7x11.2x2.6x
Sat, 12 Mar 2022US$6.2tUS$2.5tUS$555.5b10.7x11.2x2.5x
Mon, 07 Feb 2022US$6.8tUS$2.4tUS$548.5b11x12.3x2.8x
Wed, 05 Jan 2022US$6.9tUS$2.4tUS$542.1b11.2x12.7x2.8x
Fri, 03 Dec 2021US$6.4tUS$2.4tUS$542.5b10.9x11.8x2.7x
Sun, 31 Oct 2021US$6.9tUS$2.4tUS$558.3b11x12.3x2.9x
Tue, 28 Sep 2021US$6.5tUS$2.3tUS$541.3b11.2x12.1x2.8x
Thu, 26 Aug 2021US$6.2tUS$2.3tUS$539.0b10.9x11.6x2.7x
Fri, 02 Jul 2021US$6.1tUS$2.3tUS$536.8b10.9x11.4x2.6x
Mon, 05 Apr 2021US$5.6tUS$2.2tUS$436.2b11.5x12.8x2.6x
Thu, 07 Jan 2021US$4.8tUS$2.0tUS$264.2b11.7x18.1x2.4x
Wed, 30 Sep 2020US$3.8tUS$1.9tUS$241.7b10.2x15.6x2x
Sat, 04 Jul 2020US$3.7tUS$1.9tUS$225.9b10.8x16.3x1.9x
Tue, 07 Apr 2020US$3.3tUS$2.0tUS$276.0b10x11.8x1.7x
Price to Earnings Ratio

10.5x


Total Market Cap: US$4.2tTotal Earnings: US$401.3bTotal Revenue: US$2.0tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Financials Sector Price to Earnings3Y Average 13.7x202120222023
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 16.9x which is higher than its 3-year average PE of 13.7x.
  • The industry is trading close to its 3-year average PS ratio of 2.4x.
Past Earnings Growth
  • The earnings for companies in the Financials industry have declined 4.6% per year over the last three years.
  • Meanwhile revenues for these companies have grown 6.4% 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, which has decreased profits.

Industry Trends

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

US Market1.73%
Financials1.52%
Mortgage Finance4.59%
Consumer Finance3.34%
Mortgage REITs2.80%
Banks2.70%
Capital Markets2.21%
Diversified Financial-0.34%
Insurance-1.23%
Industry PE
  • Investors are most optimistic about the Diversified Financial industry which is trading above its 3-year average PE ratio of 16.6x.
    • Analysts are expecting annual earnings decline of 11.1%, which is less than its past year's earnings decline of 22.9%.
  • Investors are most pessimistic about the Mortgage REITs industry, although it looks like investor sentiment has improved given that it's trading above its 3-year average.
Forecasted Growth
  • Analysts are most optimistic on the Mortgage REITs industry, expecting annual earnings growth of 27% over the next 5 years.
  • However this is lower than its past earnings growth rate of 34% per year.
  • In contrast, the Diversified Financial industry is expected to see its earnings decline by 11% 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
SCHW Charles SchwabUS$79.025.8%
+US$8.1b
-14.0%PE22.2x
BAC Bank of AmericaUS$36.432.8%
+US$7.8b
-24.5%PB1.2x
GS Goldman Sachs GroupUS$369.954.6%
+US$5.7b
0.6%PE12x
WFC Wells FargoUS$47.583.2%
+US$5.6b
-15.5%PB1.1x
AXP American ExpressUS$178.863.8%
+US$4.9b
-3.8%PE18x
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Latest News

AON

US$313.64

Aon

7D

-1.8%

1Y

7.7%

SCHW

US$79.02

Charles Schwab

7D

5.8%

1Y

-14.0%

BRK.A

US$466,754.98

Berkshire Hathaway

7D

-0.7%

1Y

-1.4%

GS

US$369.95

Goldman Sachs Group

7D

4.6%

1Y

0.6%

MET

US$69.79

MetLife

7D

-3.1%

1Y

1.2%

AFL

US$69.39

Aflac

7D

-4.8%

1Y

7.3%

CB

US$209.84

Chubb

7D

-7.7%

1Y

1.6%

WFC

US$47.58

Wells Fargo

7D

3.2%

1Y

-15.5%

MS

US$99.43

Morgan Stanley

7D

2.7%

1Y

-4.5%

AXP

US$178.86

American Express

7D

3.8%

1Y

-3.8%

COIN

US$74.63

Coinbase Global

7D

21.6%

1Y

-61.6%