Financial institutions play a critical role, offering everything from consumer banking to wealth management and specialized financial solutions. Still, investors are uneasy as companies face challenges from an unpredictable interest rate and inflation environment. These doubts have caused the industry to lag recently as financials stocks have collectively shed 11.5% over the past six months. This drop is a far cry from the S&P 500’s 3.1% ascent.
The elite companies can churn out earnings growth under any circumstance, however, and our mission at StockStory is to help you find them. Taking that into account, here are three financials stocks boasting durable advantages.
TPG (TPG)
Market Cap: $6.77 billion
Founded in 1992 and managing over 300 active portfolio companies across more than 30 countries, TPG (NASDAQ: TPG) is a global alternative asset management firm that invests across private equity, credit, real estate, and public market strategies.
Why Does TPG Stand Out?
- Impressive 27.2% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Additional sales over the last two years increased its profitability as the 34.6% annual growth in its earnings per share outpaced its revenue
TPG is trading at $42.23 per share, or 14.3x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
Goldman Sachs (GS)
Market Cap: $257.1 billion
Founded in 1869 as a small commercial paper business in New York City, Goldman Sachs (NYSE: GS) is a global financial institution that provides investment banking, securities, asset management, and consumer banking services to corporations, governments, and individuals.
Why Do We Like GS?
- 12.3% annual revenue growth over the last two years surpassed the sector average as its products resonated with customers
- Share repurchases over the last two years enabled its annual earnings per share growth of 49.9% to outpace its revenue gains
- ROE of 12.7% shows management can invest its resources competently
Goldman Sachs’s stock price of $834.30 implies a valuation ratio of 14.1x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.
LendingClub (LC)
Market Cap: $1.68 billion
Pioneering peer-to-peer lending in the US before evolving into a digital bank, LendingClub (NYSE: LC) operates a marketplace that connects borrowers with lenders, offering personal loans, auto refinancing, and banking services.
Why Should You Buy LC?
- Market share has increased this cycle as its 25.7% annual revenue growth over the last five years was exceptional
- Performance over the past two years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 79.1% outpaced its revenue gains
At $14.53 per share, LendingClub trades at 8.5x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
Stocks We Like Even More
ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.
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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 Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
