Financials allocations top all-time high – BofA’s Global FMS

Allocation to financial stocks (NYSEARCA:XLF) reached an all-time high in December, according to BofA Securities’ Global Fund Manager Survey.

The net percentage of overweight banks (KBE) soared 23 percentage points month-over-month to net 41% overweight, the biggest monthly increase on record and the most overweight since January 2022.

Meanwhile, allocations to insurance stocks (KIE) rose 15 percentage points month-over-month to a net 20% overweight, the most since February 2014.

Top-rated bank stocks by Seeking Alpha quant metrics:

1. Wells Fargo & Co. (WFC) – Quant rating: 4.92
2. Third Coast Bancshares (TCBX) – Quant rating: 4.87
3. The PNC Financial Services Group (PNC) – Quant rating: 4.84
4. Northeast Community Bancorp (NECB) – Quant rating: 4.83
5. Unity Bancorp (UNTY) – Quant rating: 4.81
6. First Savings Financial Group (FSFG) – Quant rating: 4.80
7. M&T Bank Corp. (MTB) – Quant rating: 4.79
8. Private Bancorp of America (OTCQX:PBAM) – Quant rating: 4.78
9. First United Corp. (FUNC) – Quant rating: 4.74
10. East West Bancorp (EWBC) – Quant rating: 4.73

Top-rated insurance stocks by Seeking Alpha quant metrics:

1. Kingstone Companies (KINS) – Quant rating: 4.98
2. Root (ROOT) – Quant rating: 4.93
3. Trupanion (TRUP) – Quant rating: 4.88
4. The Allstate Corp. (ALL) – Quant rating: 4.88
5. Hippo Holdings (HIPO) – Quant rating: 4.88
6. The Progressive Corp. (HIPO) – Quant rating: 4.79
7. The Travelers Companies (TRV) – Quant rating: 4.78
8. United First Group (UFCS) – Quant rating: 4.78
9. American Coastal Insurance (ACIC) – Quant rating: 4.77
10. Mercury General Corp. (MCY) – Quant rating: 4.77