Financial institutions play a critical role, offering everything from consumer banking to wealth management and specialized financial solutions. But worries about economic uncertainty and potential market volatility have kept sentiment in check, and over the past six months, the industry has tumbled by 3.4%. This performance is a far cry from the S&P 500’s 7.6% ascent.
Despite the lackluster result, a few diamonds in the rough can produce earnings growth no matter what, and we started StockStory to help you find them. Keeping that in mind, here is one resilient financials stock at the top of our wish list and two we’re swiping left on.
Two Financials Stocks to Sell:
Northern Trust (NTRS)
Market Cap: $27.02 billion
Founded in 1889 during Chicago's post-Great Fire rebuilding boom, Northern Trust (NASDAQ: NTRS) provides wealth management, asset servicing, and banking solutions to corporations, institutions, families, and high-net-worth individuals globally.
Why Do We Think Twice About NTRS?
- Annual revenue growth of 5.8% over the last five years was below our standards for the financials sector
- Earnings growth over the last five years fell short of the peer group average as its EPS only increased by 9.3% annually
Northern Trust is trading at $142.92 per share, or 14.6x forward P/E. Dive into our free research report to see why there are better opportunities than NTRS.
Artisan Partners (APAM)
Market Cap: $2.95 billion
Founded in 1994 with a focus on autonomous investment teams and a "high-value-added" approach, Artisan Partners (NYSE: APAM) is an investment management firm that offers actively managed equity and fixed income strategies to institutional and individual investors.
Why Are We Hesitant About APAM?
- Muted 5.9% 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 3.4% annual earnings per share growth lagged its revenue gains
At $41.55 per share, Artisan Partners trades at 10.3x forward P/E. If you’re considering APAM for your portfolio, see our FREE research report to learn more.
One Financials Stock to Buy:
SEI Investments (SEIC)
Market Cap: $9.85 billion
Founded in 1968 as Simulated Environments Inc. to train bank loan officers using computer simulations, SEI Investments (NASDAQ: SEIC) provides technology platforms, investment management, and operational solutions for financial institutions, wealth managers, and investors.
Why Will SEIC Beat the Market?
- Annual revenue growth of 9.4% over the last two years was above the sector average and underscores its products and services value to customers
- Share buybacks catapulted its annual earnings per share growth to 26.5%, which outperformed its revenue gains over the last two years
- Industry-leading 26.7% return on equity demonstrates management’s skill in finding high-return investments
SEI Investments’s stock price of $80.57 implies a valuation ratio of 14.3x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it’s free.
Stocks We Like Even More
The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in our Top 5 Growth Stocks for this month. 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-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.
