Will these five financial value stocks beat the economic blues?

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Will these five financial value stocks beat the economic blues?

 Will these five financial value stocks beat the economic blues?
Image source: Sittipong Phokawattana,Shutterstock

Highlights

  • Shares of Banco Santander (NYSE: SAN) rose by 26.06 percent YTD.
  • Shares of Old Republic International Corp (ORI) jumped 41.01 percent YTD.
  • The GAAP net income of M&T Bank Corporation rose 90% in Q2 of 2021.

When we hear the words "financial sector," the first thing that comes to our mind is banks. Although banks form a significant part of the sector, non-traditional banking firms, like payment apps or fintech companies, also offer a range of similar services. But, unlike the fintech companies, which saw fast growth in recent times, financial value stocks could be typically the traditional banks.

As the economic improvement continues, the prospects of these companies are brightening up because more economic activities mean more borrowings and savings. However, stocks get picked for different investing goals. Some investors may pick a share for short-term gains, while others may buy for a long-term keep. So, the objectives vary. Fortunately, though, many financial stocks saw solid gains in the latest quarterly earnings season.

Here we explore five hot financial value stocks that may benefit from an improving economy.

Banco Santander S.A. (NYSE: SAN)

The stocks of this financial services firm traded at US$3.825 at 10:11 am ET on August 16, down 1.16 percent compared to its closing price on August 13. The stock value of SAN increased by 26.06 percent YTD. 

The market capitalization of the Spanish company is US$65.78 billion. Its forward P/E one year is 8.23. The earnings per share (EPS) is US$0.34. 

The highest and lowest stock price of the firm for 52 weeks is US$4.38 and US$1.68. Its trading share volume was 2,528,510 on August 13. The company posted its Q2 earnings for three geographical regions: the US, Mexico, and Chile.

Its Consumer USA Holdings Inc. reported a net income of US$1.1 billion or US$3.45 per diluted share. The total auto originations surged 34 percent YoY to US$10.5 billion.

The Mexican segment posted a net income of around US$237 million, up 11.4 percent from the year-ago quarter. Its core revenues surged 0.6 percent YoY to around US$1.03 billion.

The Chile segment reported a net income of (Chilean peso) CLP 185.47 billion, or CLP 0.98 apiece, up 118.6% YoY.

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Source: Pixabay.

M&T Bank Corporation (NYSE: MTB)

The stock of this bank holding firm traded at US$139.05 at 10:53 am ET on August 16, down 0.64 percent compared to its closing price on August 13. The stock value of MTB increased by 10.35 percent YTD. 

The highest and lowest stock price of the firm for 52 weeks is US$168.27 and US$88.48. Its share volume on August 13 was 441,449.

The market capitalization of this American company is US$17.84 billion. Its forward P/E one year is 10.37. The earnings per share (EPS) is US$13.01. 

The GAAP basis net income of the Buffalo, New York-based corporation in Q2 surged by 90 percent to US$458 million. Its diluted earnings per common share came in at US$3.41, compared to US$1.74 in diluted earnings per common share in the year-ago quarter.

five-financial-value-stocks-beat-the-economic-blues

Rocket Companies Inc (NYSE: RKT)

The stock of this financial services provider traded at US$18.555 at 11:07 am ET on August 16, down 3.66 percent compared to its closing price on August 13. The stock value of RKT decreased by 3.7 percent YTD. 

The market capitalization of the company is US$2.56 billion. Its forward P/E one year is 10.14. The earnings per share (EPS) is US$3.10.

The highest and lowest stock price of the firm for 52 weeks is US$43.00 and US$16.22. Its share volume was 22,014,850 on August 13. 

The total revenue of the Michigan-based corporation in Q2 of fiscal 2021 was US$2.66 billion, compared to US$5.56 billion in the year-ago quarter. Its net income came in at US$1.03 billion and adjusted EBITDA was around US$1.2 billion. The GAAP diluted earnings per share came in at US$0.40.

Also Read: Five digital payment stocks to explore amid e-commerce boom

Athene Holdings Ltd. (NYSE: ATH)

The stocks of this retirement service firm traded at US$65.61 at 11:23 am ET on August 16, up 0.20 percent compared to its August 13 closing price. The stock value of Athene increased by 55.94 percent YTD. 

The highest and lowest stock price of the firm for 52 weeks is US$70.37 and US$30.05. Its trading volume was 704,451 on August 13.

The market capitalization of the company is US$12.60 billion. Its forward P/E one year is 5.22. The earnings per share (EPS) is US$18.59. 

The operating revenue of the Bermuda-based company in Q2, 2021, almost doubled to US$3.8 billion. Its net investment income came in at US$2 billion, up 52.5% from the year-ago quarter. Total benefits and expenses rose 33.6% YoY to US$4.4 billion. The cash and cash equivalents were US$8.6 billion, improved by 4.6% from the levels at the end of 2020.

Old Republic International Corporation (ORI)

The stock of this property insurance company traded at US$26.145 at 11:36 am ET on August 16, up 1.38 percent compared to its August 13 closing price. The stock rose by 41.01 percent YTD. 

The market capitalization of the company is US$7.97 billion. Its forward P/E one year is 9.92. The earnings per share (EPS) is US$5.30.

The highest and lowest stock price of the firm for 52 weeks is US$26.69 and US$13.93. Its share volume on August 13 was 2,175,917.  

The total revenue of the Chicago, Illinois-based corporation in Q2, 2021, jumped 11.18% YoY to US$2253.7 million, while its operating revenue surged 26.9% YoY to US$2132.8 million. Its net income (loss) came in at US$316.4 million, or US$1.05 per diluted share, compared to US$397.7 million, or US$1.34 apiece, in the year-ago quarter.

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Bottomline

The financial sector is bouncing back from the pandemic disruptions. Rising consumer spending and a low rate of interest are helping financial institutions to grow. Banks typically gain from a higher interest rate environment. However, the Federal Reserve's easy monetary policy is helping them offset the losses as more people are applying for loans because of the low rates.

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