As financials continue to outperform the S&P 500, here are the top 10 SA quant picks
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Financials continue to feel the love after Donald Trump’s presidential victory, as the sector was the top-performing one on Wednesday.
Moreover, over the past 1-month, financials have outperformed every other S&P sector with returns of 8.6%, topping the S&P 500 (SP500) which is higher over the past 1-month by 3.3%. On a longer time span, financials are the second-best performing sector over the past 6-months as they are higher by 18.7% over that period. In comparison, the S&P 500 over the past 6-months is higher by 13.4%.
As a result, Seeking Alpha spotlighted 10 financial sector focused stocks that stick out from the rest. The list created is ranked by SA quant metrics for stocks that have a market cap in the sector of at least $10B and hold either a Buy or Strong Buy rating. See the list below:
Top 10 Financial Stocks per SA Quant Metrics
No. 10: Zurich Insurance Group AG (OTCQX:ZURVY), quant rating of 4.86.
No. 9: Société Générale (OTCPK:SCGLY), quant rating of 4.87.
No. 8: M&T Bank Corporation (MTB), quant rating of 4.88.
No. 7: U.S. Bancorp (USB), quant rating of 4.88.
No. 6: PNC Financial Services Group (PNC), quant rating of 4.89.
No. 5: Capital One Financial Corporation (COF), quant rating of 4.91.
No. 4: Federal National Mortgage Association (OTCQB:FNMA), quant rating of 4.92.
No. 3: Progressive Corporation (PGR), quant rating of 4.93.
No. 2: Wells Fargo & Company (WFC), quant rating of 4.96.
No. 1: Synchrony Financial (SYF), quant rating of 4.96.
Year-to-date price action: ZURVY +13.9%, SCGLY +8.5%, MTB +57.9%, USB +18.4%, PNC +32.3%, COF +45.6%, FNMA +81.3%, PGR +62.5%, WFC +47.2%, and SYF +76.7%.
Moreover, for investors looking to learn more about the financials sector of the economy they can turn towards exchange traded funds for a more diversified approach to the segment. Some note worthy funds are listed below:
Financials ETFs: (XLF), (VFH), (IYF), (FNCL), (IYG), (FXO), (KBWB), (KBE), (FTXO), (KRE), (KBWR), (IAT), and (DPST).