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. However, the industry is down 9.0% over the past year. Earnings are forecast to grow by 12% annually.
Sector Valuation and Performance
Has the U.S. Financials Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Sun, 05 Feb 2023 | US$5.9t | US$2.4t | US$348.5b | 11.9x | 16.9x | 2.4x |
| Tue, 03 Jan 2023 | US$5.5t | US$2.4t | US$369.1b | 11.4x | 14.8x | 2.3x |
| Thu, 01 Dec 2022 | US$5.8t | US$2.4t | US$369.1b | 12x | 15.7x | 2.4x |
| Sat, 29 Oct 2022 | US$5.5t | US$2.4t | US$390.2b | 11.6x | 14.2x | 2.3x |
| Mon, 26 Sep 2022 | US$5.1t | US$2.4t | US$408.5b | 11.3x | 12.5x | 2.1x |
| Wed, 24 Aug 2022 | US$5.5t | US$2.4t | US$401.2b | 11.7x | 13.8x | 2.3x |
| Fri, 22 Jul 2022 | US$5.4t | US$2.3t | US$496.6b | 11.3x | 10.9x | 2.3x |
| Sun, 19 Jun 2022 | US$5.1t | US$2.4t | US$513.5b | 10.5x | 9.9x | 2.1x |
| Tue, 17 May 2022 | US$5.6t | US$2.4t | US$515.6b | 11.4x | 10.8x | 2.3x |
| Thu, 14 Apr 2022 | US$6.2t | US$2.4t | US$554.2b | 11.7x | 11.2x | 2.6x |
| Sat, 12 Mar 2022 | US$6.2t | US$2.5t | US$555.5b | 10.7x | 11.2x | 2.5x |
| Mon, 07 Feb 2022 | US$6.8t | US$2.4t | US$548.5b | 11x | 12.3x | 2.8x |
| Wed, 05 Jan 2022 | US$6.9t | US$2.4t | US$542.1b | 11.2x | 12.7x | 2.8x |
| Fri, 03 Dec 2021 | US$6.4t | US$2.4t | US$542.5b | 10.9x | 11.8x | 2.7x |
| Sun, 31 Oct 2021 | US$6.9t | US$2.4t | US$558.3b | 11x | 12.3x | 2.9x |
| Tue, 28 Sep 2021 | US$6.5t | US$2.3t | US$541.3b | 11.2x | 12.1x | 2.8x |
| Thu, 26 Aug 2021 | US$6.2t | US$2.3t | US$539.0b | 10.9x | 11.6x | 2.7x |
| Fri, 02 Jul 2021 | US$6.1t | US$2.3t | US$536.8b | 10.9x | 11.4x | 2.6x |
| Mon, 05 Apr 2021 | US$5.6t | US$2.2t | US$436.2b | 11.5x | 12.8x | 2.6x |
| Thu, 07 Jan 2021 | US$4.8t | US$2.0t | US$264.2b | 11.7x | 18.1x | 2.4x |
| Wed, 30 Sep 2020 | US$3.8t | US$1.9t | US$241.7b | 10.2x | 15.6x | 2x |
| Sat, 04 Jul 2020 | US$3.7t | US$1.9t | US$225.9b | 10.8x | 16.3x | 1.9x |
| Tue, 07 Apr 2020 | US$3.3t | US$2.0t | US$276.0b | 10x | 11.8x | 1.7x |
Price to Earnings Ratio
10.5x
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 Market | 1.73% | |
| Financials | 1.52% | |
| Mortgage Finance | 4.59% | |
| Consumer Finance | 3.34% | |
| Mortgage REITs | 2.80% | |
| Banks | 2.70% | |
| Capital Markets | 2.21% | |
| 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?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| SCHW Charles Schwab | US$79.02 | 5.8% +US$8.1b | -14.0% | PE22.2x | |
| BAC Bank of America | US$36.43 | 2.8% +US$7.8b | -24.5% | PB1.2x | |
| GS Goldman Sachs Group | US$369.95 | 4.6% +US$5.7b | 0.6% | PE12x | |
| WFC Wells Fargo | US$47.58 | 3.2% +US$5.6b | -15.5% | PB1.1x | |
| AXP American Express | US$178.86 | 3.8% +US$4.9b | -3.8% | PE18x |
