Financial firms serve as the backbone of the economy, providing essential services from lending and investment management to risk management and payment processing. But uncertainty about fiscal and monetary policy has tempered enthusiasm, limiting the industry's gains to 1.9% over the past six months. This return lagged the S&P 500's 9.6% climb.
The elite companies can churn out earnings growth under any circumstance, however, and our mission at StockStory is to help you find them. With that said, here are two resilient financials stocks at the top of our wish list and one best left ignored.
One Financials Stock to Sell:
T. Rowe Price (TROW)
Market Cap: $22.88 billion
Founded in 1937 by Thomas Rowe Price Jr., who pioneered the growth stock investing approach, T. Rowe Price (NASDAQ: TROW) is an investment management firm that offers mutual funds, advisory services, and retirement planning solutions to individuals and institutions.
Why Are We Cautious About TROW?
- Muted 4.2% annual revenue growth over the last five years shows its demand lagged behind its financials peers
- Incremental sales over the last five years were less profitable as its 1.5% annual earnings per share growth lagged its revenue gains
T. Rowe Price is trading at $104.66 per share, or 10.3x forward P/E. Check out our free in-depth research report to learn more about why TROW doesn’t pass our bar.
Two Financials Stocks to Watch:
Moody's (MCO)
Market Cap: $91.95 billion
Founded in 1900 during America's railroad boom when investors needed reliable information on bond risks, Moody's (NYSE: MCO) provides credit ratings, risk assessment tools, and analytical solutions that help organizations evaluate financial risks and make informed investment decisions.
Why Do We Love MCO?
- Offerings and unique value proposition resonate with customers, as seen in its above-market 14.5% annual sales growth over the last two years
- Share repurchases have amplified shareholder returns as its annual earnings per share growth of 22.3% exceeded its revenue gains over the last two years
- Industry-leading 63.8% return on equity demonstrates management’s skill in finding high-return investments
Moody’s stock price of $514.25 implies a valuation ratio of 31.9x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.
Sezzle (SEZL)
Market Cap: $2.41 billion
Founded in 2016 as an alternative to traditional credit cards for younger shoppers, Sezzle (NASDAQ: SEZL) provides a payment platform that allows consumers to split purchases into four interest-free installments over six weeks at participating retailers.
Why Could SEZL Be a Winner?
- Annual revenue growth of 67.8% over the last two years was superb and indicates its market share increased during this cycle
- Performance over the past two years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 173% outpaced its revenue gains
At $70.47 per share, Sezzle trades at 16.5x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.
Don’t wait for the next volatility shock. Check out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.
