Investing IdeasBrowse All StocksMarkets
Have your own idea? Try our Stock Screener
Header cover image

U.S. Financials Sector Analysis

UpdatedMar 31, 2026
DataAggregated Company Financials
Companies1413
  • 7D-1.8%
  • 3M-12.4%
  • 1Y-1.3%
  • YTD-11.9%

Over the last 7 days, the Financials industry has dropped 1.8%, driven by JPMorgan Chase declining 2.1%. As for the longer term, the industry's performance has been flat for the past year. As for the next few years, earnings are expected to grow by 8.9% per annum.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Tue, 31 Mar 2026US$9.2tUS$3.3tUS$562.8b12.2x16.3x2.8x
Thu, 26 Feb 2026US$9.8tUS$3.3tUS$563.8b12.4x17.3x3x
Sat, 24 Jan 2026US$10.4tUS$3.2tUS$557.8b12.7x18.6x3.3x
Mon, 22 Dec 2025US$10.5tUS$3.2tUS$552.6b12.9x19x3.3x
Wed, 19 Nov 2025US$9.8tUS$3.2tUS$553.5b11.9x17.8x3.1x
Fri, 17 Oct 2025US$10.2tUS$3.1tUS$524.9b12.3x19.5x3.3x
Sun, 14 Sep 2025US$10.4tUS$3.3tUS$517.6b13.1x20.1x3.1x
Tue, 12 Aug 2025US$10.0tUS$3.1tUS$518.5b12.3x19.2x3.3x
Thu, 10 Jul 2025US$10.0tUS$3.0tUS$524.9b13.2x19x3.3x
Sat, 07 Jun 2025US$9.5tUS$3.0tUS$525.4b12.5x18.1x3.2x
Mon, 05 May 2025US$9.3tUS$3.0tUS$541.7b12.3x17.1x3.1x
Wed, 02 Apr 2025US$9.4tUS$3.0tUS$544.7b12.2x17.3x3.2x
Fri, 28 Feb 2025US$9.7tUS$3.0tUS$546.1b12.4x17.7x3.3x
Sun, 26 Jan 2025US$9.5tUS$2.9tUS$539.8b12.9x17.6x3.2x
Tue, 24 Dec 2024US$9.3tUS$2.9tUS$504.7b13.1x18.5x3.2x
Thu, 21 Nov 2024US$9.6tUS$2.9tUS$504.7b13.5x19x3.3x
Sat, 19 Oct 2024US$9.1tUS$2.8tUS$470.0b12.9x19.4x3.2x
Mon, 16 Sep 2024US$8.5tUS$2.8tUS$466.0b12.4x18.3x3x
Wed, 14 Aug 2024US$8.1tUS$2.8tUS$465.7b11.9x17.3x2.8x
Fri, 12 Jul 2024US$8.0tUS$2.8tUS$461.1b11.3x17.4x2.9x
Sun, 09 Jun 2024US$7.9tUS$2.8tUS$463.1b10.7x17x2.8x
Tue, 07 May 2024US$7.9tUS$2.8tUS$468.3b10.9x16.8x2.8x
Thu, 04 Apr 2024US$8.0tUS$2.7tUS$475.0b10.7x16.8x2.9x
Sat, 02 Mar 2024US$7.7tUS$2.7tUS$475.4b10.6x16.2x2.8x
Mon, 29 Jan 2024US$7.5tUS$2.7tUS$423.1b12.3x17.8x2.8x
Wed, 27 Dec 2023US$7.4tUS$2.7tUS$446.7b11.7x16.5x2.7x
Fri, 24 Nov 2023US$6.8tUS$2.7tUS$446.4b10.7x15.2x2.5x
Sun, 22 Oct 2023US$6.3tUS$2.7tUS$435.9b10.1x14.4x2.3x
Tue, 19 Sep 2023US$6.8tUS$2.7tUS$430.8b10.5x15.8x2.6x
Thu, 17 Aug 2023US$6.7tUS$2.7tUS$430.8b10.8x15.5x2.5x
Sat, 15 Jul 2023US$6.7tUS$2.6tUS$349.6b10.8x19.1x2.6x
Mon, 12 Jun 2023US$6.4tUS$2.6tUS$341.1b10.6x18.9x2.5x
Wed, 10 May 2023US$6.2tUS$2.6tUS$340.8b10.1x18.3x2.4x
Fri, 07 Apr 2023US$6.3tUS$2.6tUS$318.8b10.7x19.6x2.4x
Price to Earnings Ratio

19.6x


Total Market Cap: US$6.3tTotal Earnings: US$318.8bTotal Revenue: US$2.6tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Financials Sector Price to Earnings3Y Average 17.8x202420252026
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 17.8x.
  • The industry is trading close to its 3-year average PS ratio of 2.9x.
Past Earnings Growth
  • The earnings for companies in the Financials industry have grown 21% per year over the last three years.
  • Revenues for these companies have grown 8.8% 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 Market-3.50%
Financials-1.81%
Mortgage Finance0%0
Mortgage REITs-0.18%
Insurance-0.39%
Banks-1.69%
Diversified Financial-1.80%
Capital Markets-2.55%
Consumer Finance-2.81%
Industry PE
  • Investors are most optimistic about the Capital Markets industry even though it's trading below its 3-year average PE ratio of 25.7x.
    • Analysts are expecting annual earnings growth of 12.5%, which is lower than the prior year's growth of 18.3% per year.
  • Investors are most pessimistic about the Mortgage REITs industry, which is trading below its 3-year average of 19.9x.
Forecasted Growth
  • Analysts are most optimistic on the Consumer Finance industry, expecting annual earnings growth of 17% over the next 5 years.
  • However this is lower than its past earnings growth rate of 31% per year.
  • In contrast, the Insurance industry is expected to see its earnings grow by 3.8% 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
BX BlackstoneUS$111.602.1%
+US$1.8b		-20.2%PE28.9x
AFL AflacUS$108.171.4%
+US$783.1m		-2.7%PE15.3x
ACGL Arch Capital GroupUS$95.622.1%
+US$739.5m		-0.6%PE7.8x
SNEX StoneX GroupUS$77.959.9%
+US$552.4m		53.1%PE17.7x
MRX Marex GroupUS$43.5017.6%
+US$467.0m		23.2%PE10.6x

Latest News

ERIE
US$247.99
Erie Indemnity
7D
3.1%
1Y
-39.7%
BLK
US$934.06
BlackRock
7D
-4.2%
1Y
-1.3%
MRX
US$43.50
Marex Group
7D
17.6%
1Y
23.2%
JPM
US$283.77
JPMorgan Chase
7D
-2.1%
1Y
15.7%
V
US$299.54
Visa
7D
-1.6%
1Y
-14.5%

Visa - A Fundamental and Historical Valuation

Business Overview Key Metrics Total: 9.5/17 +2✅✅ Projected Operating Margin: 65.63% +0 ⚠️ Projected 5-Year Revenue CAGR: 9.43% +2 ✅✅ Last 5-Year ROIC: 39.70% +1 ✅ Estimated Cost of Capital: 6.26% (lower than ROIC) -1 ❌ Last 5-Year Shares Outstanding CAGR: +0.15% +1 ✅ Projected 5-Year EPS CAGR: 12.38% +1 ✅ Projected 5-Year Dividend CAGR: 12.50% +1.5 ✅ Estimated Debt Rating: Aa3 +2 ✅✅ Morningstar Moat: Wide +0 ⚠️ Morningstar Uncertainty: Medium Business Valuation To calculate the intrinsic value of the company I'll use multiple methods: Discounted Cash Flows (DCF) - Intrinsic value is estimated by projecting its free cash flows over the next 10 years and discounting them to present value using the estimated cost of capital ; EPS Growth - the fair value is estimated by projected the Earnings Per Share CAGR for the next 5 Years and then, given its current and historic values of PE, come up with a PE for the 5th Year. This will give us its price 5 Years from now using the formula: Price = EPS x PE that we then discount using the estimated cost of capital; Historical P/E - we assume mean reversion to the historical P/E values; Historical EV/EBITDA - we assume mean reversion to the historical EV/EBITDA values.
MA
US$494.00
Mastercard
7D
-1.3%
1Y
-9.9%
SNEX
US$77.95
StoneX Group
7D
9.9%
1Y
53.1%
BX
US$111.60
Blackstone
7D
2.1%
1Y
-20.2%
ACGL
US$95.62
Arch Capital Group
7D
2.1%
1Y
-0.6%
MRSH
US$174.72
Marsh & McLennan Companies
7D
0.5%
1Y
-28.4%
GS
US$807.60
Goldman Sachs Group
7D
-2.8%
1Y
47.8%

GS: Buybacks And Rising Dividend Stream Will Drive Future Upside Potential

Analysts have nudged their price target on Goldman Sachs Group slightly higher to $959.75 from $959.20, citing small adjustments to fair value, discount rate, revenue growth, profit margin, and future P/E assumptions. What's in the News Goldman Sachs & Co. LLC has been added as Co Lead Underwriter for a US$17.096 million fixed income offering by The Goldman Sachs Group, Inc.
ORI
US$39.93
Old Republic International
7D
4.4%
1Y
1.8%

ORI: Neutral Stance Where Dividend And Buybacks Will Shape Future Returns

Analysts have reiterated their price target on Old Republic International at $42.50, citing a more cautious stance following a downgrade to Neutral after recent Q4 earnings commentary. Analyst Commentary Bullish Takeaways Bullish analysts see the reiterated US$42.50 price target as consistent with a view that the shares already reflect recent Q4 commentary, which they believe limits downside if execution stays on track.
AFL
US$108.17
Aflac
7D
1.4%
1Y
-2.7%
MS
US$158.37
Morgan Stanley
7D
-3.6%
1Y
35.7%

MS: Buybacks And Lower Credit Costs Will Support Future Upside

Analysts have raised their price target on Morgan Stanley from $169.52 to $195.81. They cite updated assumptions that include revised revenue growth, profit margin, discount rate and future P/E inputs.
C
US$107.27
Citigroup
7D
-3.9%
1Y
51.1%

C: Banamex Stake Sale And Capital Actions Will Drive Future Upside

Analysts have raised their price target on Citigroup from $116.00 to about $134.32, citing updated assumptions that include different revenue growth, profit margin, future P/E expectations, and an adjusted discount rate. What's in the News Citi signed a long term lease for premium office space in The Rock, a new 9,492 m² office development in Luxembourg’s Cloche d’Or district.
BRK.A
US$712,700.00
Berkshire Hathaway
7D
-1.0%
1Y
-10.7%