Investing IdeasBrowse All StocksMarkets

Have your own idea? Try our Stock Screener

Header cover image

U.S. Financials Sector Analysis

UpdatedNov 29, 2024
DataAggregated Company Financials
Companies1308
  • 7D0.9%
  • 3M13.5%
  • 1Y43.6%
  • YTD36.0%

Over the last 7 days, the Financials industry has risen 3.4%, driven by gains from Berkshire Hathaway of 1.3%. Meanwhile, Blackstone actually underperformed within the industry, shrinking 5.0% in the last week. This means that the industry has gained 46% over the past year. Looking forward, earnings are forecast to grow by 7.3% annually.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Fri, 29 Nov 2024US$9.9tUS$2.9tUS$504.7b13.8x19.6x3.4x
Sun, 27 Oct 2024US$9.0tUS$2.9tUS$471.1b12.5x19x3.1x
Tue, 24 Sep 2024US$8.7tUS$2.8tUS$466.2b12.7x18.7x3.1x
Thu, 22 Aug 2024US$8.4tUS$2.8tUS$466.2b12.2x18x3x
Sat, 20 Jul 2024US$8.3tUS$2.8tUS$469.3b11.7x17.7x3x
Mon, 17 Jun 2024US$7.8tUS$2.8tUS$463.1b10.5x16.7x2.8x
Wed, 15 May 2024US$8.0tUS$2.8tUS$463.1b10.9x17.2x2.9x
Fri, 12 Apr 2024US$7.7tUS$2.7tUS$475.0b10.4x16.3x2.9x
Sun, 10 Mar 2024US$7.8tUS$2.7tUS$472.9b10.7x16.4x2.9x
Tue, 06 Feb 2024US$7.4tUS$2.7tUS$421.3b10.5x17.5x2.8x
Thu, 04 Jan 2024US$7.4tUS$2.7tUS$447.7b11.3x16.4x2.7x
Sat, 02 Dec 2023US$7.0tUS$2.7tUS$446.4b10.9x15.6x2.6x
Mon, 30 Oct 2023US$6.1tUS$2.7tUS$440.5b10.1x13.9x2.3x
Wed, 27 Sep 2023US$6.5tUS$2.7tUS$430.7b10.2x15.1x2.4x
Fri, 25 Aug 2023US$6.6tUS$2.7tUS$430.8b10.5x15.3x2.5x
Sun, 23 Jul 2023US$6.9tUS$2.6tUS$348.6b11x19.7x2.6x
Tue, 20 Jun 2023US$6.5tUS$2.6tUS$341.2b10.6x19.1x2.5x
Thu, 18 May 2023US$6.3tUS$2.6tUS$341.1b10.3x18.4x2.4x
Sat, 15 Apr 2023US$6.4tUS$2.6tUS$324.3b10.7x19.8x2.5x
Mon, 13 Mar 2023US$5.3tUS$2.4tUS$308.2b11.2x17x2.2x
Wed, 08 Feb 2023US$5.9tUS$2.4tUS$348.1b11.9x17x2.4x
Fri, 06 Jan 2023US$5.5tUS$2.4tUS$369.1b11.5x14.9x2.3x
Sun, 04 Dec 2022US$5.7tUS$2.4tUS$369.1b12x15.6x2.4x
Tue, 01 Nov 2022US$5.5tUS$2.4tUS$390.2b11.7x14.1x2.3x
Thu, 29 Sep 2022US$5.1tUS$2.4tUS$408.4b11.2x12.4x2.1x
Sat, 27 Aug 2022US$5.5tUS$2.4tUS$401.2b11.6x13.7x2.3x
Mon, 25 Jul 2022US$5.4tUS$2.4tUS$491.7b11.3x11x2.3x
Wed, 22 Jun 2022US$5.2tUS$2.4tUS$513.5b10.6x10.1x2.1x
Fri, 20 May 2022US$5.5tUS$2.4tUS$514.4b11.3x10.7x2.3x
Sun, 17 Apr 2022US$6.2tUS$2.4tUS$538.7b11.8x11.4x2.5x
Tue, 15 Mar 2022US$6.3tUS$2.5tUS$558.0b10.8x11.2x2.5x
Thu, 10 Feb 2022US$6.9tUS$2.4tUS$548.2b11.1x12.6x2.8x
Sat, 08 Jan 2022US$7.0tUS$2.4tUS$542.1b11.5x12.8x2.9x
Mon, 06 Dec 2021US$6.5tUS$2.4tUS$542.5b10.7x11.9x2.7x
Price to Earnings Ratio

11.9x


Total Market Cap: US$6.5tTotal Earnings: US$542.5bTotal Revenue: US$2.4tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Financials Sector Price to Earnings3Y Average 15.5x202220232024
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 19.6x which is higher than its 3-year average PE of 15.5x.
  • The 3-year average PS ratio of 2.6x is lower than the industry's current PS ratio of 3.4x.
Past Earnings Growth
  • The earnings for companies in the Financials industry have declined 2.4% 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 Market0.49%
Financials0.93%
Consumer Finance2.02%
Insurance1.72%
Diversified Financial1.38%
Mortgage REITs1.14%
Banks0.62%
Capital Markets0.064%
Mortgage Finance0%
Industry PE
  • Investors are most optimistic about the Capital Markets industry which is trading above its 3-year average PE ratio of 22.3x.
    • Analysts expect its future annual earnings growth (12.9%) to be largely in line with prior year's earnings growth.
  • Investors are most pessimistic about the Insurance industry, which is trading below its 3-year average of 18.1x.
Forecasted Growth
  • Analysts are most optimistic on the Mortgage REITs industry, expecting annual earnings growth of 49% over the next 5 years.
  • This is better than its past earnings growth rate of 5.3% per year.
  • In contrast, the Diversified Financial industry is expected to see its earnings decline by 4.1% 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
BRK.A Berkshire HathawayUS$723.55k1.3%
+US$13.3b		33.4%PE9.7x
MA MastercardUS$532.382.2%
+US$10.6b		28.5%PE39.7x
V VisaUS$314.701.5%
+US$9.4b		22.7%PE31.7x
BAC Bank of AmericaUS$47.771.6%
+US$5.9b		54.3%PB1.3x
WFC Wells FargoUS$77.211.6%
+US$4.2b		71.5%PB1.6x
Simply Wall St™
Simply Wall Street Pty Ltd
Level 7, 320 Pitt Street, Sydney
Download on the App StoreGet it on Google Play
Popular Markets
USAUUKINCAZA
About UsCareersPlansLogin
Help CenterLatest CoveragePodcastsAffiliate ProgramBusiness & EnterpriseWhat's New
Financial Services GuideTerms and ConditionsPrivacy Policy
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

BAC

US$47.77

Bank of America

7D

1.6%

1Y

54.3%

BLK

US$1,019.45

BlackRock

7D

-1.6%

1Y

34.8%

MA

US$532.38

Mastercard

7D

2.2%

1Y

28.5%

Is Now The Time To Put Mastercard (NYSE:MA) On Your Watchlist?

Nov 27
Is Now The Time To Put Mastercard (NYSE:MA) On Your Watchlist?

XP

US$14.95

XP

7D

-5.9%

1Y

-37.5%

XP Inc. Q3: Modest And Without Triggers For Abrupt Improvement

Nov 27

MS

US$131.21

Morgan Stanley

7D

-2.6%

1Y

62.2%

BX

US$189.02

Blackstone

7D

-5.0%

1Y

65.4%

BRK.A

US$723,549.00

Berkshire Hathaway

7D

1.3%

1Y

33.4%

Berkshire Hathaway: Cash Hoard Likely To Be Underutilized For Longer

Nov 27

V

US$314.70

Visa

7D

1.5%

1Y

22.7%

NU

US$13.53

Nu Holdings

7D

-2.7%

1Y

63.0%

FCNC.A

US$2,308.48

First Citizens BancShares

7D

-1.9%

1Y

55.4%

MCO

US$500.88

Moody's

7D

4.2%

1Y

35.0%

SQ

US$88.78

Block

7D

-3.8%

1Y

36.5%

Block, Inc.'s (NYSE:SQ) Shares Leap 25% Yet They're Still Not Telling The Full Story

Nov 20
Block, Inc.'s (NYSE:SQ) Shares Leap 25% Yet They're Still Not Telling The Full Story

WFC

US$77.21

Wells Fargo

7D

1.6%

1Y

71.5%

Wells Fargo Stock: Why It Could Continue Its Bull Run Once The Asset Cap Is Lifted

Nov 20

APO

US$173.85

Apollo Global Management

7D

3.8%

1Y

87.5%

FI

US$220.59

Fiserv

7D

-0.4%

1Y

68.9%

JPM

US$249.79

JPMorgan Chase

7D

0.5%

1Y

59.3%

JPMorgan: Strong Results Make 6% Preferred Shares Still Appealing

Nov 09