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U.S. Financials Sector Analysis

UpdatedDec 27, 2025
DataAggregated Company Financials
Companies1406
  • 7D1.4%
  • 3M2.6%
  • 1Y13.8%
  • YTD14.6%

In the last week, the Financials industry is up 1.4%, with JPMorgan Chase up 3.4%. In the last 12 months, the industry was up 14%. 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
Sat, 27 Dec 2025US$10.7tUS$3.2tUS$552.7b12.8x19.3x3.4x
Mon, 24 Nov 2025US$9.9tUS$3.2tUS$552.8b12.1x17.9x3.1x
Wed, 22 Oct 2025US$10.1tUS$3.1tUS$529.9b12.4x19.1x3.3x
Fri, 19 Sep 2025US$10.4tUS$3.3tUS$517.5b13.1x20.2x3.1x
Sun, 17 Aug 2025US$10.1tUS$3.3tUS$517.2b12.6x19.5x3x
Tue, 15 Jul 2025US$9.9tUS$3.0tUS$524.9b13.3x18.9x3.3x
Thu, 12 Jun 2025US$9.6tUS$3.0tUS$525.5b12.6x18.3x3.2x
Sat, 10 May 2025US$9.4tUS$3.0tUS$528.4b12.4x17.8x3.1x
Mon, 07 Apr 2025US$8.4tUS$3.0tUS$545.2b11.3x15.3x2.8x
Wed, 05 Mar 2025US$9.8tUS$3.0tUS$545.2b12.2x18x3.3x
Fri, 31 Jan 2025US$9.9tUS$3.0tUS$546.3b12.7x18.1x3.3x
Sun, 29 Dec 2024US$9.4tUS$2.9tUS$505.1b13x18.6x3.2x
Tue, 26 Nov 2024US$9.5tUS$2.9tUS$504.7b13.9x18.9x3.3x
Thu, 24 Oct 2024US$9.0tUS$2.8tUS$470.9b12.6x19.2x3.2x
Sat, 21 Sep 2024US$8.8tUS$2.8tUS$466.2b12.7x18.8x3.1x
Mon, 19 Aug 2024US$8.4tUS$2.8tUS$466.2b12.1x18x3x
Wed, 17 Jul 2024US$8.3tUS$2.8tUS$467.2b11.9x17.7x3x
Fri, 14 Jun 2024US$7.8tUS$2.8tUS$463.2b10.6x16.8x2.8x
Sun, 12 May 2024US$8.0tUS$2.8tUS$462.4b10.9x17.3x2.9x
Tue, 09 Apr 2024US$8.0tUS$2.7tUS$475.0b10.7x16.8x2.9x
Thu, 07 Mar 2024US$7.7tUS$2.7tUS$472.4b10.7x16.3x2.8x
Sat, 03 Feb 2024US$7.6tUS$2.7tUS$427.3b11.8x17.7x2.8x
Mon, 01 Jan 2024US$7.4tUS$2.7tUS$446.8b11.5x16.6x2.7x
Wed, 29 Nov 2023US$6.9tUS$2.7tUS$446.4b10.5x15.3x2.5x
Fri, 27 Oct 2023US$6.2tUS$2.7tUS$440.2b10.1x14.2x2.3x
Sun, 24 Sep 2023US$6.6tUS$2.7tUS$430.8b10.3x15.3x2.5x
Tue, 22 Aug 2023US$6.6tUS$2.7tUS$431.0b10.7x15.4x2.5x
Thu, 20 Jul 2023US$6.9tUS$2.6tUS$348.9b11x19.7x2.6x
Sat, 17 Jun 2023US$6.5tUS$2.6tUS$341.3b10.6x19.1x2.5x
Mon, 15 May 2023US$6.1tUS$2.6tUS$341.3b10.2x18x2.4x
Wed, 12 Apr 2023US$6.3tUS$2.6tUS$318.3b10.7x19.9x2.5x
Fri, 10 Mar 2023US$5.4tUS$2.4tUS$308.4b11.4x17.5x2.3x
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
Price to Earnings Ratio

14.8x


Total Market Cap: US$5.5tTotal Earnings: US$369.1bTotal Revenue: US$2.4tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Financials Sector Price to Earnings3Y Average 17.7x20242025
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 14% per year over the last three years.
  • Revenues for these companies have grown 9.3% 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%
Financials1.39%
Banks2.00%
Capital Markets1.82%
Consumer Finance1.39%
Diversified Financial0.78%
Insurance0.57%
Mortgage REITs0.34%
Mortgage Finance0%0
Industry PE
  • Investors are most optimistic about the Capital Markets industry, which is trading close to its 3-year average PE ratio of 25.5x.
    • Analysts are expecting annual earnings growth of 12.6%, which is lower than the prior year's growth of 17.4% per year.
  • Investors are most pessimistic about the Insurance industry, which is trading below its 3-year average of 18.8x.
Forecasted Growth
  • Analysts are most optimistic on the Mortgage REITs industry, expecting annual earnings growth of 36% 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
JPM JPMorgan ChaseUS$327.913.4%
+US$29.1b		36.0%PB2.6x
V VisaUS$355.001.6%
+US$11.0b		11.4%PE34.2x
C CitigroupUS$120.424.8%
+US$9.9b		69.6%PB1.1x
MS Morgan StanleyUS$181.872.8%
+US$7.8b		43.5%PE18.6x
WFC Wells FargoUS$95.262.4%
+US$7.1b		34.0%PB1.8x

Latest News

SCHW
US$101.89
Charles Schwab
7D
3.1%
1Y
36.3%

SCHW: Forge Global Deal And Capital Returns Will Shape Balanced Forward Outlook

Analysts have nudged their average price target for Charles Schwab modestly higher, lifting fair value by about $1 to roughly $113. They cite a string of Q3-driven target increases that highlight stronger than expected earnings momentum, improving net interest dynamics, and a growing outlook for capital returns.
KLAR
US$29.59
Klarna Group
7D
-3.9%
1Y
n/a
BAC
US$56.17
Bank of America
7D
1.6%
1Y
26.7%
LMND
US$74.69
Lemonade
7D
-9.6%
1Y
89.6%

LMND Will Balance Rising Market Share Expectations With Moderate Profit Improvement

We raise our fair value estimate for Lemonade to $85 from $60 per share, reflecting analysts' higher price targets and confidence that the company can sustain growth above the broader market and achieve modestly better long term profitability, despite slightly higher risk assumptions. Analyst Commentary Bullish analysts have steadily raised their price targets on Lemonade in recent months, signaling growing confidence in the company’s ability to execute on its long term roadmap.
COIN
US$236.90
Coinbase Global
7D
-3.4%
1Y
-10.8%
MET
US$80.30
MetLife
7D
-1.6%
1Y
-2.4%
V
US$355.00
Visa
7D
1.6%
1Y
11.4%

V: Stablecoin Expansion Will Sustain Durable Network Moat In Coming Years

Analysts have nudged their blended price target on Visa slightly lower by about $0.45 per share to roughly $395, as a modestly higher discount rate partially offsets improving expectations for revenue growth, profit margins, and the long term earnings multiple. This outlook is supported by recent Buy and Overweight initiations that highlight the company's network scale, brand strength, and favorable cross border and pricing trends.
HOOD
US$118.13
Robinhood Markets
7D
-2.7%
1Y
202.7%

HOOD: MIAXdx Venture And Prediction Markets Will Shape Balanced Risk Reward Outlook

Analysts have lifted their average price target on Robinhood Markets to approximately $112.60 from about $67.00, citing the transformative economics of its MIAXdx joint venture, accelerating prediction market revenues, and a maturing multi-product platform that is expected to support higher long term margins and valuation multiples. Analyst Commentary Street research around Robinhood has tilted decisively constructive in recent weeks, with a series of price target hikes and fresh initiations reflecting optimism on both the MIAXdx joint venture and the scaling of prediction markets.
CINF
US$164.79
Cincinnati Financial
7D
-1.5%
1Y
14.4%

CINF: Calm Catastrophe Season And Q3 Beat Will Support Future Stability

Analysts modestly raised their price target on Cincinnati Financial to $186 from $184, citing stronger earnings flowing through updated models and a more favorable near term insurance backdrop following a relatively calm catastrophe season. Analyst Commentary Bullish analysts highlight that the recent Q3 earnings beat supports a higher valuation framework, with rising EPS forecasts giving greater confidence in the durability of Cincinnati Financial's profit trajectory.
MS
US$181.87
Morgan Stanley
7D
2.8%
1Y
43.5%

MS: Richer Multiple And Buybacks Will Likely Limit Future Return Potential

Analysts have raised their price target on Morgan Stanley from approximately 101 dollars to about 136 dollars. This reflects increased confidence in the bank's higher projected revenue growth, improved profit margins, and a modestly richer future price to earnings multiple, despite a slightly higher discount rate.
C
US$120.42
Citigroup
7D
4.8%
1Y
69.6%
MA
US$579.60
Mastercard
7D
1.3%
1Y
8.9%

MA: Expanding Digital And Cross-Border Payments Will Drive Future Upside

Analysts have nudged our fair value estimate for Mastercard modestly higher to approximately $657 from about $656, citing a wave of rising Street price targets grounded in solid quarterly results, resilient spending trends, and the companys expanding role in high growth digital and cross border payments. Analyst Commentary Bullish analysts have highlighted Mastercard's strong execution and durable growth profile as key reasons for revising price targets higher, reinforcing the view that the company can sustain premium valuation multiples.
JPM
US$327.91
JPMorgan Chase
7D
3.4%
1Y
36.0%

JPM: Strong ROTCE And Loan Growth Are Expected To Drive Upside

Analysts have raised their fair value estimate for JPMorgan Chase to $375 from $350. This reflects increased confidence in stronger revenue growth, resilient profitability, and sustained post-earnings momentum that supports higher price targets across the Street.
WFC
US$95.26
Wells Fargo
7D
2.4%
1Y
34.0%

WFC: Future Returns Will Reflect Fee Strength Amid Ongoing Execution Risks

We raise our Wells Fargo price target modestly to $94.50 from $93.71, reflecting analysts' increased confidence in fee driven earnings strength, improving profitability metrics, and higher medium term return targets following a series of post Q3 estimate and target upgrades. Analyst Commentary Recent Street research indicates a generally constructive stance on Wells Fargo, with a series of price target increases following the Q3 print.
BLSH
US$41.14
Bullish
7D
-7.8%
1Y
n/a