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U.S. Financials Sector Analysis

UpdatedJan 08, 2026
DataAggregated Company Financials
Companies1407
  • 7D1.7%
  • 3M4.0%
  • 1Y14.6%
  • YTD1.3%

Over the last 7 days, the Financials industry has risen 1.7%, driven by gains from Goldman Sachs Group of 7.1%. This means that the industry has gained 15% over the past year. 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
Fri, 09 Jan 2026US$10.8tUS$3.2tUS$551.9b12.8x19.6x3.4x
Sun, 07 Dec 2025US$10.3tUS$3.2tUS$552.6b12.5x18.6x3.3x
Tue, 04 Nov 2025US$10.0tUS$3.1tUS$547.8b12x18.3x3.2x
Thu, 02 Oct 2025US$10.4tUS$3.3tUS$517.8b12.8x20.1x3.1x
Sat, 30 Aug 2025US$10.4tUS$3.3tUS$518.1b13.1x20x3.1x
Mon, 28 Jul 2025US$10.2tUS$3.0tUS$533.3b12.7x19.2x3.4x
Wed, 25 Jun 2025US$9.7tUS$3.0tUS$525.5b12.6x18.5x3.2x
Fri, 23 May 2025US$9.5tUS$3.0tUS$524.0b12.4x18.1x3.1x
Sun, 20 Apr 2025US$8.8tUS$3.0tUS$550.8b11.4x16x3x
Tue, 18 Mar 2025US$9.2tUS$3.0tUS$545.3b12x16.9x3.1x
Thu, 13 Feb 2025US$9.9tUS$2.9tUS$552.7b12.6x17.9x3.4x
Sat, 11 Jan 2025US$9.3tUS$2.9tUS$505.9b12.4x18.5x3.2x
Mon, 09 Dec 2024US$9.8tUS$2.9tUS$504.7b13.7x19.3x3.4x
Wed, 06 Nov 2024US$8.9tUS$2.9tUS$505.7b12.6x17.5x3.1x
Fri, 04 Oct 2024US$8.6tUS$2.8tUS$467.0b12.3x18.5x3.1x
Sun, 01 Sep 2024US$8.7tUS$2.8tUS$466.0b12.6x18.7x3.1x
Tue, 30 Jul 2024US$8.4tUS$2.8tUS$467.8b12.4x17.9x3x
Thu, 27 Jun 2024US$7.9tUS$2.8tUS$463.0b10.6x17x2.8x
Sat, 25 May 2024US$7.9tUS$2.8tUS$463.2b10.9x17x2.8x
Mon, 22 Apr 2024US$7.7tUS$2.7tUS$474.4b10.5x16.3x2.8x
Wed, 20 Mar 2024US$7.8tUS$2.7tUS$473.0b10.5x16.6x2.9x
Fri, 16 Feb 2024US$7.5tUS$2.7tUS$435.8b10.7x17.2x2.8x
Sun, 14 Jan 2024US$7.4tUS$2.7tUS$448.4b11.2x16.4x2.7x
Tue, 12 Dec 2023US$7.1tUS$2.7tUS$446.6b11x15.9x2.6x
Thu, 09 Nov 2023US$6.5tUS$2.7tUS$444.1b10.6x14.7x2.4x
Sat, 07 Oct 2023US$6.5tUS$2.7tUS$430.9b10.3x15x2.4x
Mon, 04 Sep 2023US$6.8tUS$2.7tUS$434.9b10.8x15.7x2.6x
Wed, 02 Aug 2023US$6.9tUS$2.6tUS$349.8b11.2x19.7x2.6x
Fri, 30 Jun 2023US$6.5tUS$2.6tUS$342.8b10.4x18.9x2.5x
Sun, 28 May 2023US$6.2tUS$2.6tUS$341.1b10.4x18.2x2.4x
Tue, 25 Apr 2023US$6.4tUS$2.6tUS$323.5b10.4x19.9x2.5x
Thu, 23 Mar 2023US$5.0tUS$2.4tUS$307.1b10.5x16.4x2.1x
Sat, 18 Feb 2023US$5.8tUS$2.4tUS$340.2b11.8x17.1x2.4x
Mon, 16 Jan 2023US$5.8tUS$2.4tUS$367.2b11.7x15.7x2.4x
Price to Earnings Ratio

15.7x


Total Market Cap: US$5.8tTotal Earnings: US$367.2bTotal 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 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 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 9.3% 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 Market1.52%
Financials1.67%
Consumer Finance3.84%
Capital Markets3.41%
Banks2.10%
Mortgage REITs1.41%
Diversified Financial0.80%
Mortgage Finance0%0
Insurance-1.81%
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 16.5% 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
JPM JPMorgan ChaseUS$329.792.3%
+US$20.6b		35.6%PB2.6x
GS Goldman Sachs GroupUS$934.836.4%
+US$17.5b		61.2%PE18.6x
MS Morgan StanleyUS$184.684.0%
+US$11.4b		44.4%PE18.9x
AXP American ExpressUS$382.983.5%
+US$9.0b		26.5%PE25.3x
BAC Bank of AmericaUS$56.182.1%
+US$8.6b		21.6%PB1.5x

Latest News

ORI
US$43.00
Old Republic International
7D
-5.8%
1Y
25.2%
JPM
US$329.79
JPMorgan Chase
7D
2.3%
1Y
35.6%
GS
US$934.83
Goldman Sachs Group
7D
6.4%
1Y
61.2%
MS
US$184.68
Morgan Stanley
7D
4.0%
1Y
44.4%
AIG
US$77.90
American International Group
7D
-8.9%
1Y
9.1%
TRV
US$284.18
Travelers Companies
7D
-2.0%
1Y
17.1%

TRV: Underwriting Execution And Buybacks Will Offset Softening P And C Pricing

Analysts made only a marginal trim to Travelers Companies' modeled fair value, from about $297.10 to $296.95. A mix of higher and lower Street price targets, along with updated views on underwriting trends and pricing conditions across property and casualty lines, fed into a slightly adjusted long term P/E assumption and earnings outlook.
COF
US$255.68
Capital One Financial
7D
5.5%
1Y
41.9%

COF: Capital Return Plans And Credit Trends Will Shape Post 2025 Risk Reward Profile

Narrative Update on Capital One Financial The analyst price target for Capital One Financial has been raised by about US$6 to reflect updated assumptions around fair value, P/E, discount rate, and growth, with analysts pointing to recent target increases supported by loan growth expectations, net interest income momentum, and a relatively constructive credit backdrop in recent research. Analyst Commentary Recent Street research on Capital One Financial highlights a mix of optimism on earnings power and loan growth, paired with ongoing caution around credit risk and sector macro questions.
MKTX
US$171.68
MarketAxess Holdings
7D
-5.3%
1Y
-21.8%

MKTX: Reset Expectations And New Auctions Will Support Future Upside

Analysts reduced their price target for MarketAxess Holdings to US$255 from US$274, reflecting tempered expectations for revenue growth and market share as recent research points to slower growth assumptions, modestly higher discount rates, and potential delays in the traction of newer trading protocols. Analyst Commentary Recent Street research on MarketAxess reflects a mixed but increasingly balanced view, with several firms recalibrating price targets while maintaining neutral or equal weight ratings.
TW
US$103.98
Tradeweb Markets
7D
-3.3%
1Y
-22.4%

TW: Record Volumes And New Platforms Will Support Measured Long-Term Prospects

Analysts are maintaining their fair value estimate for Tradeweb Markets at US$110.00, with updated assumptions that include a slightly lower discount rate, higher projected revenue growth and profit margins, and a lower future P/E multiple. What's in the News Tradeweb reported record total trading volume of $56.8 trillion for November 2025, with average daily volume of $2.9 trillion and a 22.3% year-over-year (YoY) increase in ADV.
BRK.A
US$750,300.00
Berkshire Hathaway
7D
-0.6%
1Y
10.7%
MA
US$580.07
Mastercard
7D
1.6%
1Y
12.3%
CME
US$266.64
CME Group
7D
-2.4%
1Y
16.3%

CME: Fee Resilience And Prediction Markets Will Balance Lower Volatility Risks

Analysts have nudged their average price target on CME Group modestly higher, to approximately $287 from about $286, citing the company’s resilient fee-based revenue mix, strong competitive moat in futures and options, and supportive demand signals from prediction market partnerships despite some conflicting views on near term volume volatility. Analyst Commentary Recent Street research presents a mixed but generally constructive view on CME Group, with upward moves in price targets tempered by concerns around volume sensitivity and valuation risk if volatility normalizes.
BAC
US$56.18
Bank of America
7D
2.1%
1Y
21.6%

BAC: Future Capital Returns And Macro Tailwinds Will Support Balanced Risk Reward Outlook

Analysts have nudged our Bank of America fair value estimate higher to approximately $59.65 from about $58.98. This reflects a series of upward price target revisions that highlight solid revenue growth, improved net interest income expectations, and one of the more attractive risk and reward profiles among large universal banks.
PGR
US$213.15
Progressive
7D
-6.4%
1Y
-12.5%

PGR: Reaccelerating Auto Policy Additions Will Drive Earnings Power Through 2025

Analysts have nudged our fair value estimate for Progressive slightly lower to $255.13 from $257.44, reflecting a modest reset in top-line growth expectations, while still highlighting resilient underwriting profitability, accelerating personal auto policy growth, and lighter catastrophe losses that together support higher earnings power over time. Analyst Commentary Street research on Progressive reflects a broadly constructive fundamental backdrop with some valuation discipline and event driven caution.
AXP
US$382.98
American Express
7D
3.5%
1Y
26.5%
WFC
US$95.60
Wells Fargo
7D
2.6%
1Y
33.6%

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.