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U.S. Financials Sector Analysis

UpdatedAug 18, 2026
DataAggregated Company Financials
Companies1403
  • 7D-0.1%
  • 3M12.3%
  • 1Y8.4%
  • YTD4.5%

The Financials industry has been flat over the last week, but Berkshire Hathaway has lost 5.8%. As for the the longer term, the industry is up 8.4% over the past 12 months. Looking forward, earnings are forecast to grow by 8.0% annually.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Tue, 18 Aug 2026US$10.9tUS$3.5tUS$648.8b12.9x16.9x3.1x
Thu, 16 Jul 2026US$10.7tUS$3.4tUS$609.5b13.3x17.5x3.1x
Sat, 13 Jun 2026US$10.0tUS$3.4tUS$596.8b12.9x16.8x3x
Mon, 11 May 2026US$9.8tUS$3.4tUS$597.1b12.7x16.5x2.9x
Wed, 08 Apr 2026US$9.5tUS$3.3tUS$562.7b12.8x16.9x2.9x
Fri, 06 Mar 2026US$9.9tUS$3.3tUS$562.6b12.1x17.5x3x
Sun, 01 Feb 2026US$10.3tUS$3.2tUS$567.0b12.4x18.1x3.2x
Tue, 30 Dec 2025US$10.6tUS$3.2tUS$552.7b12.8x19.2x3.4x
Thu, 27 Nov 2025US$10.1tUS$3.2tUS$552.7b12.3x18.2x3.2x
Sat, 25 Oct 2025US$10.1tUS$3.1tUS$534.0b12.4x18.9x3.2x
Mon, 22 Sep 2025US$10.5tUS$3.3tUS$517.8b13x20.3x3.2x
Wed, 20 Aug 2025US$10.1tUS$3.3tUS$517.4b12.6x19.5x3x
Fri, 18 Jul 2025US$9.9tUS$3.0tUS$527.0b13.2x18.8x3.3x
Sun, 15 Jun 2025US$9.4tUS$3.0tUS$525.2b12.3x18x3.1x
Tue, 13 May 2025US$9.4tUS$3.0tUS$527.6b12.6x17.8x3.1x
Thu, 10 Apr 2025US$8.3tUS$3.0tUS$545.2b11.5x15.2x2.8x
Sat, 08 Mar 2025US$9.4tUS$3.0tUS$545.0b12.1x17.2x3.2x
Mon, 03 Feb 2025US$9.9tUS$2.9tUS$547.3b12.6x18x3.3x
Wed, 01 Jan 2025US$9.3tUS$2.9tUS$505.4b13x18.4x3.2x
Fri, 29 Nov 2024US$9.9tUS$2.9tUS$504.7b13.8x19.6x3.4x
Sun, 27 Oct 2024US$9.0tUS$2.9tUS$471.1b12.5x19x3.1x
Tue, 24 Sep 2024US$8.7tUS$2.8tUS$466.2b12.7x18.7x3.1x
Thu, 22 Aug 2024US$8.4tUS$2.8tUS$466.2b12.2x18x3x
Sat, 20 Jul 2024US$8.3tUS$2.8tUS$469.3b11.7x17.7x3x
Mon, 17 Jun 2024US$7.8tUS$2.8tUS$463.1b10.5x16.7x2.8x
Wed, 15 May 2024US$8.0tUS$2.8tUS$463.1b10.9x17.2x2.9x
Fri, 12 Apr 2024US$7.7tUS$2.7tUS$475.0b10.4x16.3x2.9x
Sun, 10 Mar 2024US$7.8tUS$2.7tUS$472.9b10.7x16.4x2.9x
Tue, 06 Feb 2024US$7.4tUS$2.7tUS$421.3b10.5x17.5x2.8x
Thu, 04 Jan 2024US$7.4tUS$2.7tUS$447.7b11.3x16.4x2.7x
Sat, 02 Dec 2023US$7.0tUS$2.7tUS$446.4b10.9x15.6x2.6x
Mon, 30 Oct 2023US$6.1tUS$2.7tUS$440.5b10.1x13.9x2.3x
Wed, 27 Sep 2023US$6.5tUS$2.7tUS$430.7b10.2x15.1x2.4x
Fri, 25 Aug 2023US$6.6tUS$2.7tUS$430.8b10.5x15.3x2.5x
Price to Earnings Ratio

15.3x


Total Market Cap: US$6.6tTotal Earnings: US$430.8bTotal Revenue: US$2.7tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Financials Sector Price to Earnings3Y Average 17.5x202420252026
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 17.5x.
  • 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 15% per year over the last three years.
  • Revenues for these companies have grown 9.5% 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 Market0.11%
Financials-0.12%
Capital Markets1.65%
Mortgage REITs0.96%
Banks0.93%
Consumer Finance0.81%
Mortgage Finance0%0
Insurance-1.99%
Diversified Financial-2.29%
Industry PE
  • Investors are most optimistic about the Capital Markets industry, which is trading close to its 3-year average PE ratio of 25.7x.
    • Analysts are expecting annual earnings growth of 12.2%, which is lower than the prior year's growth of 34.4% per year.
  • Investors are most pessimistic about the Mortgage REITs industry, which is trading below its 3-year average of 18.4x.
Forecasted Growth
  • Analysts are most optimistic on the Mortgage REITs industry, expecting annual earnings growth of 21% over the next 5 years.
  • This is better than its past earnings growth rate of 13% 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
C CitigroupUS$138.512.4%
+US$5.5b		47.0%PB1.2x
GS Goldman Sachs GroupUS$1.05k1.6%
+US$5.1b		43.8%PE15.9x
MS Morgan StanleyUS$218.211.3%
+US$4.5b		50.7%PE17.5x
KKR KKRUS$108.834.8%
+US$4.5b		-22.9%PE32.7x
SCHW Charles SchwabUS$110.582.4%
+US$4.5b		15.0%PE19.7x

Latest News

AON
US$347.22
Aon
7D
-2.7%
1Y
-5.0%
GS
US$1,051.31
Goldman Sachs Group
7D
1.6%
1Y
43.8%
Seeking Alpha • 2h

Goldman Sachs Is Still The Bank To Buy

Summary Goldman Sachs is rated a 'buy' due to scale, deal flow leadership, and a resilient capital formation cycle. GS's Q2 net revenues rose to ~$20.34Bn, with 23.5% ROE and $6.63Bn net earnings, driven by Global Banking & Markets strength. Valuation is mildly attractive: fair value averages $1,065.49, a ~2.45% undervaluation, with excess return models supporting upside. GS's growth is underpinned by volatility-driven trading, a robust IPO pipeline, and asset management fee expansion, but remains sensitive to market downturns. Read the full article on Seeking Alpha
JPM
US$360.96
JPMorgan Chase
7D
0.3%
1Y
23.8%
BRK.A
US$747,400.00
Berkshire Hathaway
7D
-5.8%
1Y
4.1%
Seeking Alpha • Aug 16

Berkshire Hathaway: Greg Abel Gets Busier Buying

Summary Berkshire Hathaway is executing a more active investment strategy under CEO Greg Abel, expanding beyond prior conservatism. Q2 saw significant capital deployment: major additions to Alphabet and Delta, announcement of the $6.8B Taylor Morrison acquisition, and $4.4B in buybacks. Operational improvements continued in insurance, BNSF, and BHE. My sum-of-the-parts valuation now shows a 12.7% premium to market price. I maintain a Buy rating on Berkshire, due to enhanced earnings power and attractive entry post-pullback. Read the full article on Seeking Alpha
C
US$138.51
Citigroup
7D
2.4%
1Y
47.0%
CB
US$340.86
Chubb
7D
-2.1%
1Y
24.9%
NU
US$14.74
Nu Holdings
7D
6.3%
1Y
10.6%
Narrative Update • Aug 16

NU: Latin American Banking Licenses Will Support Long-Term Earnings Potential

Analysts have adjusted their fair value estimate for Nu Holdings stock from $22.00 to $23.00, reflecting updated assumptions for the discount rate, revenue growth, profit margin, and future P/E. What’s in the News for Nu Holdings Nu Holdings reported Q2 2026 net profit of US$1.06b, which was above analyst estimates, with management linking the result to higher revenue and stronger risk adjusted net interest margins.
V
US$358.84
Visa
7D
-0.7%
1Y
4.7%
Seeking Alpha • Aug 14

Pershing Square's New Equity Positions In The Card Networks

Summary Earlier this year, we initiated positions in Visa and Mastercard. In our view, Visa and Mastercard are among the highest-quality businesses in the world. With a multi-year runway of double-digit revenue, low-to-mid-teens operating income, and mid-to-high-teens EPS growth, we expect both businesses to generate attractive returns for years to come. Read the full article on Seeking Alpha
BNY
US$164.27
Bank of New York Mellon
7D
3.0%
1Y
61.5%
PGR
US$203.84
Progressive
7D
-4.7%
1Y
-17.5%
SCHW
US$110.58
Charles Schwab
7D
2.4%
1Y
15.0%
MS
US$218.21
Morgan Stanley
7D
1.3%
1Y
50.7%
KKR
US$108.83
KKR
7D
4.8%
1Y
-22.9%
MRSH
US$184.21
Marsh & McLennan Companies
7D
-3.4%
1Y
-11.3%
TRV
US$364.51
Travelers Companies
7D
-3.0%
1Y
37.6%
ALL
US$258.10
Allstate
7D
-4.3%
1Y
24.6%
Seeking Alpha • Aug 07

Allstate: Strong Operating Performance Is Not Sustainable In The Long Run

Summary Allstate Corporation delivered strong Q2 2026 results, driven by lower catastrophe losses, robust top-line growth, and improved underwriting profitability. ALL's combined ratio improved to 86.6% in Q2 and 84.3% for H1 2026, but these levels are not expected to be sustainable long term. Net income and ROE are currently elevated, yet earnings and profitability are projected to normalize as underwriting margins revert to historical averages. ALL's valuation at 2.2x book value appears fair, with capital returns focused on share buybacks and a sustainable, low-payout dividend. Read the full article on Seeking Alpha