Should you watch these 3 US financial stocks in 2023?

By - Mridul Gogoi


  • Unum Groups net income in Q3 2022 was US$ 410.7 million.
  • StoneX Group Inc. reported a revenue of US$ 16,381.0 million in Q4 2022.
  • Waterdrop Inc.'s net profit was US$ 23.8 million in Q3 2022.

Financial stocks form the core of the equity market as the sector is indispensable for the economy. Investors prefer these stocks to include in their portfolios. During normal market conditions, these stocks may provide good returns. However, during a bearish trend, past performances cannot guarantee future gains.

We look at three US financial stocks and their performances in the latest quarter:

Unum Group (NYSE: UNM)

Unum Group is an insurance company that provides income protection for individuals and groups in the US, the UK, Poland, and other nations. The largest domestic disability insurer holds a dividend yield of 3.217 per cent. The company paid a quarterly dividend of US$ 0.33 with a three-year growth of 4.39.

In the third quarter of fiscal 2022, Unum Group’s net income was US$ 410.7 million or US$ 2.04 per diluted common share. It saw a rise from US$ 328.6 million or US$ 1.60 per diluted common share in the year-ago quarter.

The insurance company registered a Q3 2022 revenue of US$ 2,961.9 million versus US$ 2,969.7 million in the same quarter a year ago. The UNM stock gained 66.99 year-to-date (YTD).

StoneX Group Inc. (NASDAQ: SNEX)

StoneX Group offers services in risk management, market intelligence, clearing services, and execution, among others. The global financial services and brokerage firm has an EPS of 10.01 and a P/E ratio of 9.50.

In the fourth quarter of 2022, StoneX Group reported a revenue of US$ 16,381 million compared to US$ 11,846.8 million in the same quarter of 2021.

The net operating revenue of the financial advisory firm was US$ 387.7 million in Q4 2022 versus US$ 261.7 million in the corresponding quarter a year ago. The company's earnings per share (basic) was reported at US$ 2.58 in the last quarter of fiscal 2022 compared to US$ 0.37 per share in the same quarter in 2021. The SNEX stock returned 55.59 per cent YTD.

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Waterdrop Inc. (NYSE: WDH)

The Tech platform of Waterdrop Inc provides dedicated services in the insurance and healthcare segment. The third-party insurance platform in China, in terms of life and health insurance, generates revenues from the PRC.  

The company has a P/E ratio of 14.60 and a P/B (price-to-book) ratio of 1.824.

The company said that in Q3 2022, the first-year premiums ("FYP") generated through its Waterdrop Insurance Marketplace came to US$ 251 million, up 8.4 per cent quarter over quarter.

The net operating revenue in the reported quarter was US$ 108.6 million, which was a 10.1 per cent increase quarter over quarter,

The net profit of the financial company was reported at US$ 23.8 million in the third quarter of 2022, which has been keeping up with the trend in profitability since the beginning of the year. The WDH stock jumped 141.30 per cent YTD.

Bottom line:

Financial stocks have traditionally done well, and investors love them. However, the current market situation is completely different, and nothing can be predicted about the outcome. The volatility in the equity market is still prevalent. So, if you want to protect your investments, you might adopt a long-term strategy and not try to do anything extraordinary.