Financial firms serve as the backbone of the economy, providing essential services from lending and investment management to risk management and payment processing. Market leaders have certainly capitalized on a favorable backdrop to boost profitability, helping fuel a 18.4% gain for the industry over the past six months. This performance has closely followed the S&P 500.
Nevertheless, investors should tread carefully as many firms are cyclical due to their leverage and exposure to regulatory changes. Keeping that in mind, here are three financials stocks we think can generate sustainable market-beating returns.
P10 (PX)
Market Cap: $1.23 billion
Operating as a bridge between institutional investors and hard-to-access private market opportunities, P10 (NYSE: PX) is an alternative asset management firm that provides access to private equity, venture capital, impact investing, and private credit opportunities in the middle and lower middle markets.
Why Are We Positive On PX?
- Market share has increased this cycle as its 41.3% annual revenue growth over the last five years was exceptional
- Earnings per share grew by 36.5% annually over the last three years and trumped its peers
At $11.18 per share, P10 trades at 11.4x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
LPL Financial (LPLA)
Market Cap: $27.25 billion
As the nation's largest independent broker-dealer with no proprietary products of its own, LPL Financial (NASDAQ: LPLA) provides technology, compliance, and business support services to independent financial advisors and institutions who manage investments for retail clients.
Why Are We Backing LPLA?
- Market share has increased this cycle as its 22.6% annual revenue growth over the last two years was exceptional
- Incremental sales over the last five years boosted profitability as its annual earnings per share growth of 21.3% outstripped its revenue performance
- Industry-leading 40.4% return on equity demonstrates management’s skill in finding high-return investments
LPL Financial is trading at $341.15 per share, or 16.7x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it’s free.
Euronet Worldwide (EEFT)
Market Cap: $3.53 billion
Operating a global network of over 47,000 ATMs and 821,000 point-of-sale terminals across more than 60 countries, Euronet Worldwide (NASDAQ: EEFT) provides electronic payment solutions including ATM services, prepaid product processing, and international money transfer services.
Why Are We Fans of EEFT?
- Annual revenue growth of 9.8% over the last five years was above the sector average and underscores its products and services value to customers
- Share buybacks lifted its annual earnings per share growth to 11.9%, which outperformed its revenue gains over the last two years
- ROE punches in at 18.2%, illustrating management’s expertise in identifying profitable investments
Euronet Worldwide’s stock price of $88.90 implies a valuation ratio of 8.4x 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
Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.
The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 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 for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
