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U.S. Financials Sector Analysis

UpdatedNov 27, 2024
DataAggregated Company Financials
Companies1308
  • 7D2.9%
  • 3M15.2%
  • 1Y46.6%
  • YTD35.3%

Over the last 7 days, the Financials industry has risen 2.9%, driven by gains in Berkshire Hathaway and JPMorgan Chase of 2.1% and 2.8%, respectively. During this same period, the Coinbase Global underperformed, falling 9.6%. This means that the industry has gained 47% over the past year. As for the next few years, earnings are expected to grow by 6.4% per annum.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Wed, 27 Nov 2024US$9.6tUS$2.9tUS$504.8b13.8x19x3.3x
Fri, 25 Oct 2024US$9.0tUS$2.8tUS$471.4b12.6x19.2x3.2x
Sun, 22 Sep 2024US$8.7tUS$2.8tUS$466.2b12.7x18.7x3.1x
Tue, 20 Aug 2024US$8.4tUS$2.8tUS$466.2b12.2x18x3x
Thu, 18 Jul 2024US$8.4tUS$2.8tUS$468.7b11.9x17.9x3x
Sat, 15 Jun 2024US$7.8tUS$2.8tUS$463.1b10.5x16.8x2.8x
Mon, 13 May 2024US$8.0tUS$2.8tUS$463.0b10.9x17.3x2.9x
Wed, 10 Apr 2024US$8.0tUS$2.7tUS$475.0b10.7x16.9x3x
Fri, 08 Mar 2024US$7.7tUS$2.7tUS$472.7b10.7x16.4x2.9x
Sun, 04 Feb 2024US$7.6tUS$2.7tUS$427.3b11.8x17.7x2.8x
Tue, 02 Jan 2024US$7.4tUS$2.7tUS$446.8b11.5x16.6x2.7x
Thu, 30 Nov 2023US$6.8tUS$2.7tUS$446.4b10.6x15.3x2.5x
Sat, 28 Oct 2023US$6.1tUS$2.7tUS$440.8b10x13.9x2.3x
Mon, 25 Sep 2023US$6.6tUS$2.7tUS$430.8b10.3x15.3x2.5x
Wed, 23 Aug 2023US$6.6tUS$2.7tUS$430.7b10.5x15.2x2.5x
Fri, 21 Jul 2023US$6.9tUS$2.6tUS$348.7b11x19.8x2.6x
Sun, 18 Jun 2023US$6.5tUS$2.6tUS$341.3b10.6x19.1x2.5x
Tue, 16 May 2023US$6.2tUS$2.6tUS$341.3b10.1x18.2x2.4x
Thu, 13 Apr 2023US$6.3tUS$2.6tUS$318.4b10.7x19.8x2.5x
Sat, 11 Mar 2023US$5.3tUS$2.4tUS$308.2b11.2x17.1x2.2x
Mon, 06 Feb 2023US$5.9tUS$2.4tUS$348.2b11.9x16.9x2.4x
Wed, 04 Jan 2023US$5.5tUS$2.4tUS$369.1b11.5x14.8x2.3x
Fri, 02 Dec 2022US$5.8tUS$2.4tUS$369.1b11.9x15.6x2.4x
Sun, 30 Oct 2022US$5.5tUS$2.4tUS$390.5b11.6x14.2x2.3x
Tue, 27 Sep 2022US$5.0tUS$2.4tUS$408.4b11.2x12.3x2.1x
Thu, 25 Aug 2022US$5.6tUS$2.4tUS$401.2b11.6x13.9x2.3x
Sat, 23 Jul 2022US$5.4tUS$2.3tUS$496.6b11.3x10.9x2.3x
Mon, 20 Jun 2022US$5.1tUS$2.4tUS$513.5b10.5x9.9x2.1x
Wed, 18 May 2022US$5.5tUS$2.4tUS$515.8b11.6x10.7x2.3x
Fri, 15 Apr 2022US$6.2tUS$2.4tUS$543.1b11.7x11.3x2.5x
Sun, 13 Mar 2022US$6.2tUS$2.5tUS$558.0b10.7x11.2x2.5x
Tue, 08 Feb 2022US$6.8tUS$2.4tUS$548.5b11x12.3x2.8x
Thu, 06 Jan 2022US$6.9tUS$2.4tUS$542.1b11.2x12.7x2.8x
Sat, 04 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 19.0x 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 3.3x.
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 Market2.00%
Financials2.91%
Consumer Finance6.28%
Insurance4.20%
Banks3.50%
Capital Markets2.36%
Diversified Financial1.70%
Mortgage REITs1.10%
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 are expecting annual earnings growth of 11.4%, which is lower than the prior year's growth of 13.4% per year.
  • 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 50% 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 5.5% 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$718.52k2.1%
+US$20.9b		31.4%PE9.7x
JPM JPMorgan ChaseUS$249.972.8%
+US$19.4b		62.8%PB2.2x
AXP American ExpressUS$305.577.0%
+US$14.1b		84.5%PE22.1x
WFC Wells FargoUS$77.355.3%
+US$13.1b		78.3%PB1.6x
BAC Bank of AmericaUS$47.752.9%
+US$10.3b		61.7%PB1.3x
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OSCR

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1Y

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FUTU

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1Y

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GS

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COIN

US$293.29

Coinbase Global

7D

-9.6%

1Y

128.7%

BAC

US$47.75

Bank of America

7D

2.9%

1Y

61.7%

MA

US$528.48

Mastercard

7D

1.7%

1Y

29.2%

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SQ

US$89.01

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1Y

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WFC

US$77.35

Wells Fargo

7D

5.3%

1Y

78.3%

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FIS

US$84.94

Fidelity National Information Services

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1Y

49.3%

MKTX

US$261.02

MarketAxess Holdings

7D

-2.5%

1Y

13.0%

BGC

US$9.64

BGC Group

7D

-6.9%

1Y

47.6%

JPM

US$249.97

JPMorgan Chase

7D

2.8%

1Y

62.8%

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MS

US$131.28

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1Y

70.8%

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