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U.S. Financials Sector Analysis

UpdatedJul 21, 2026
DataAggregated Company Financials
Companies1415
  • 7D0.02%
  • 3M6.4%
  • 1Y6.2%
  • YTD1.9%

Over the last 7 days, the Financials industry has remained flat, although notably Citigroup declined by 8.5%. As for the the longer term, the industry is up 6.2% over the past 12 months. As for the next few years, earnings are expected to grow by 8.6% per annum.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Wed, 22 Jul 2026US$10.7tUS$3.4tUS$615.1b13.3x17.3x3.1x
Fri, 19 Jun 2026US$10.2tUS$3.4tUS$596.7b12.7x17.2x3x
Sun, 17 May 2026US$9.8tUS$3.4tUS$597.0b12.4x16.3x2.9x
Tue, 14 Apr 2026US$9.7tUS$3.3tUS$562.8b13.3x17.2x2.9x
Thu, 12 Mar 2026US$9.6tUS$3.3tUS$563.2b11.8x17x2.9x
Sat, 07 Feb 2026US$10.2tUS$3.3tUS$569.2b12.8x17.9x3.1x
Mon, 05 Jan 2026US$10.5tUS$3.2tUS$551.9b12.6x19.1x3.3x
Wed, 03 Dec 2025US$10.1tUS$3.2tUS$552.6b12.3x18.3x3.2x
Fri, 31 Oct 2025US$10.0tUS$3.1tUS$537.8b12.1x18.6x3.2x
Sun, 28 Sep 2025US$10.4tUS$3.3tUS$517.7b13x20.1x3.1x
Tue, 26 Aug 2025US$10.3tUS$3.3tUS$517.8b13x19.8x3.1x
Thu, 24 Jul 2025US$10.1tUS$3.0tUS$531.2b13.1x19x3.3x
Sat, 21 Jun 2025US$9.4tUS$3.0tUS$525.5b12.3x18x3.1x
Mon, 19 May 2025US$9.7tUS$3.0tUS$528.2b12.9x18.4x3.2x
Wed, 16 Apr 2025US$8.9tUS$3.0tUS$543.1b11.4x16.4x3x
Fri, 14 Mar 2025US$9.0tUS$3.0tUS$545.1b11.7x16.6x3x
Sun, 09 Feb 2025US$10.0tUS$3.0tUS$554.0b12.6x18x3.4x
Tue, 07 Jan 2025US$9.4tUS$2.9tUS$505.8b12.9x18.6x3.2x
Thu, 05 Dec 2024US$9.8tUS$2.9tUS$504.7b13.7x19.3x3.4x
Sat, 02 Nov 2024US$8.9tUS$2.9tUS$470.0b12.6x19x3.1x
Mon, 30 Sep 2024US$8.7tUS$2.8tUS$466.2b12.3x18.6x3.1x
Wed, 28 Aug 2024US$8.5tUS$2.8tUS$466.0b12.4x18.3x3x
Fri, 26 Jul 2024US$8.2tUS$2.8tUS$466.0b12.4x17.6x2.9x
Sun, 23 Jun 2024US$7.9tUS$2.8tUS$463.0b10.5x17x2.8x
Tue, 21 May 2024US$8.1tUS$2.8tUS$463.2b10.9x17.5x2.9x
Thu, 18 Apr 2024US$7.5tUS$2.7tUS$474.9b10.2x15.8x2.8x
Sat, 16 Mar 2024US$7.8tUS$2.7tUS$473.0b10.5x16.4x2.9x
Mon, 12 Feb 2024US$7.5tUS$2.7tUS$431.8b10.6x17.3x2.8x
Wed, 10 Jan 2024US$7.4tUS$2.7tUS$447.7b11.3x16.5x2.7x
Fri, 08 Dec 2023US$7.0tUS$2.7tUS$446.3b11x15.6x2.6x
Sun, 05 Nov 2023US$6.6tUS$2.7tUS$448.8b10.8x14.7x2.5x
Tue, 03 Oct 2023US$6.5tUS$2.7tUS$430.9b10.3x15.1x2.4x
Thu, 31 Aug 2023US$6.8tUS$2.7tUS$435.0b10.6x15.6x2.5x
Sat, 29 Jul 2023US$6.9tUS$2.6tUS$350.9b11.2x19.5x2.6x
Price to Earnings Ratio

19.5x


Total Market Cap: US$6.9tTotal Earnings: US$350.9bTotal Revenue: US$2.6tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Financials Sector Price to Earnings3Y Average 17.6x202420252026
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 17.6x.
  • The industry is trading close to its 3-year average PS ratio of 3.0x.
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 9.1% 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-1.36%
Financials0.019%
Diversified Financial0.47%
Banks0.077%
Mortgage Finance0%0
Capital Markets-0.0021%
Consumer Finance-0.072%
Mortgage REITs-0.58%
Insurance-0.84%
Industry PE
  • Investors are most optimistic about the Capital Markets industry, which is trading close to its 3-year average PE ratio of 25.8x.
    • Analysts are expecting annual earnings growth of 11.6%, which is lower than the prior year's growth of 38.3% per year.
  • Investors are most pessimistic about the Mortgage REITs industry, which is trading below its 3-year average of 18.9x.
Forecasted Growth
  • Analysts are most optimistic on the Mortgage REITs industry, expecting annual earnings growth of 25% over the next 5 years.
  • This is better than its past earnings growth rate of 4.1% per year.
  • In contrast, the Insurance industry is expected to see its earnings growth to stay flat over the next few years.

Top Stock Gainers and Losers

Which companies have driven the market over the last 7 days?

CompanyLast Price7D1YValuation
PYPL PayPal HoldingsUS$55.8517.9%
+US$7.5b		-26.5%PE9.7x
WFC Wells FargoUS$87.742.9%
+US$7.4b		6.5%PB1.6x
JPM JPMorgan ChaseUS$345.230.7%
+US$6.2b		18.5%PB2.6x
TRV Travelers CompaniesUS$369.639.7%
+US$5.5b		38.6%PE9.4x
BAC Bank of AmericaUS$61.221.0%
+US$4.2b		28.2%PB1.6x

Latest News

CB
US$354.80
Chubb
7D
2.5%
1Y
27.3%
BAC
US$61.22
Bank of America
7D
1.0%
1Y
28.2%
Narrative Update • Jul 21

BAC: Capital Markets Strength In Higher For Longer Rates Will Drive Returns

Bank of America’s updated fair value estimate increases to $68.11 from $64.83, reflecting analysts’ higher price targets following Q2 earnings and their focus on responsible growth, stronger fee-based businesses, and a slightly lower assumed future P/E multiple. Analyst Commentary Recent research on Bank of America centers on how well the company is executing on Q2 results, the quality of its earnings mix, and what that could imply for valuation and growth assumptions.
TRV
US$369.63
Travelers Companies
7D
9.7%
1Y
38.6%
New Narrative • Jul 21

AI And Data-Driven Underwriting Will Support Stronger Long-Term Returns

Catalysts About Travelers Companies Travelers Companies is a large property and casualty insurer operating across Business Insurance, Bond & Specialty Insurance, and Personal Insurance. What are the underlying business or industry changes driving this perspective?
MS
US$216.40
Morgan Stanley
7D
-5.0%
1Y
54.5%
MSCI
US$561.74
MSCI
7D
-8.1%
1Y
6.7%
Narrative Update • Jul 20

MSCI: Proprietary Data And AI Will Support Recurring Revenue Premium

The analyst price target for MSCI has been raised by about $14 to reflect a slightly higher modeled fair value, supported by research that highlights recurring revenue visibility, data driven growth opportunities, and what analysts describe as limited AI disruption risk. Analyst Commentary Recent research on MSCI shows a cluster of price target increases and rating upgrades, with most coverage pointing to resilient revenue visibility, data centric growth drivers, and limited perceived risk from AI disruption.
JPM
US$345.23
JPMorgan Chase
7D
0.7%
1Y
18.5%
Seeking Alpha • Jul 19

JPMorgan: Deep Value Despite Premium P/B (Rating Upgrade)

Summary J.P. Morgan Chase delivered record Q2 results, beating top and bottom line estimates with strong loan and deposit growth. JPM achieved 10% year-over-year net interest income growth, driven by a $1.5 trillion average loan base and a favorable rate environment. Book value per share reached a new record of $133.01, up 9% year-over-year, supporting JPM's premium valuation versus peers. JPM remains a safe haven, well-positioned to benefit from slow Fed rate cuts and ongoing U.S. financial sector growth. Read the full article on Seeking Alpha
MAAS
US$19.99
Maase
7D
41.7%
1Y
n/a
HOOD
US$106.36
Robinhood Markets
7D
-6.2%
1Y
4.4%
Seeking Alpha • Jul 18

Robinhood: The Bullish Case Isn't Over Yet

Summary Robinhood remains a Buy as fundamentals strengthen, with robust revenue growth and market share in the high-growth fintech space. HOOD trades at a 46x forward P/E and 2.65 PEG, justified by 42% revenue growth and premium margins versus sector peers. The company boasts a low-leverage capital structure, $19.27B in cash against $13.61B obligations, and sector-leading 92% gross and 41% net margins. Risks include premium valuation, high beta volatility, potential margin erosion from competitors, and sensitivity to market sentiment shifts. Read the full article on Seeking Alpha
PYPL
US$55.85
PayPal Holdings
7D
17.9%
1Y
-26.5%
New Narrative • Jul 17

PayPal: Undervalued Cash Flow Machine or Value Trap?

Investment Summary PayPal remains one of the largest digital payments platforms globally, yet the market continues to value the company as a mature, low-growth payments processor rather than a business capable of generating durable free cash flow and high returns on invested capital. Based on my discounted cash flow (DCF) analysis, PayPal appears materially undervalued, with an intrinsic value of $106.44 per share , representing approximately 88% upside from the current share price of $56.56.
GS
US$1,085.56
Goldman Sachs Group
7D
-4.8%
1Y
55.0%
Narrative Update • Jul 17

GS: AI Deal Boom Will Eventually Fail To Justify Rich Earnings Multiple

Analysts have lifted their price target on Goldman Sachs Group to $801.67 from $780.03, citing updated assumptions around fair value, discount rate, revenue growth, profit margin, and future P/E that together point to a modestly higher valuation anchor for the stock. What’s in the News for Goldman Sachs Group Goldman Sachs reported record Q2 2026 results, with adjusted EPS of US$20.98 and revenue of US$20.34b, supported by broad-based strength in Global Banking & Markets, investment banking, trading, and asset and wealth management, according to the official earnings release.
COIN
US$175.85
Coinbase Global
7D
8.9%
1Y
-56.5%
PGR
US$205.90
Progressive
7D
-9.1%
1Y
-16.8%
WFC
US$87.74
Wells Fargo
7D
2.9%
1Y
6.5%
AXP
US$350.79
American Express
7D
-1.2%
1Y
15.3%
AFRM
US$74.72
Affirm Holdings
7D
-11.5%
1Y
14.2%
Seeking Alpha • Jul 13

Affirm: Easy Money Will Be Gone By The Time It Feels Safe

Summary Affirm is now a free cash flow machine, poised to generate over $1 billion in FCF in the next twelve months. AFRM is expected to deliver 24%-25% revenue growth in fiscal 2027, with annual revenues surpassing $5 billion. Profitability is accelerating: management has consistently raised non-GAAP operating margin guidance, targeting 29% next fiscal year. At 25x forward FCF and a PEG of ~1x, AFRM appears undervalued despite competitive risks and current risk-off sentiment. Read the full article on Seeking Alpha
BRK.A
US$733,526.00
Berkshire Hathaway
7D
-0.5%
1Y
2.6%