10 Best Financial Advisory Firms To Buy Now

Published February 3, 2021 at 2:22 pm EST Updated August 19, 2026 at 4:45 am EDT

In this article we discuss 10 best financial advisory firms to buy now.

The coronavirus crisis gave a wakeup call to millions of individuals and businesses worldwide: you cannot just wing it when it comes to financial planning and wealth management. A survey conducted by the College of Financial Planning shows that 71% of financial advisors saw a rise in clients after the pandemic. As the economic anxiety and fears of recession increase worldwide, the already massive wealth management and financial advisory industry will thrive. A Schwab survey in 2020 showed that over 52% of the surveyed Baby Boomers said that the pandemic has made them more focused on developing a clear financial plan for retirement.

Growth Catalysts for Financial Advisory and Wealth Management Stocks

The wealth management and financial advisory companies have a lot of room to grow, as current market trends show that just a fraction of common people are using financial advisory services. A national poll conducted by CNBC and Acorns by SurveyMonkey in October 2020 showed that 99% of the Americans leave their financial planning to their parents, spouse or someone else. Only 1% use a financial advisor. The survey questioned 2,776 adults. Nearly 40 million people have lost their jobs in the U.S. as a result of the coronavirus pandemic. With job losses rising and financial anxiety on record highs, young Americans will start using the expertise of the financial advisory firms to plan their future and invest smartly.

Robo Advisors and Rewired Investors

Current trends show that wealth management and financial advisory companies tend to target only the rich. A report from Deloitte shows that mass affluent customers usually represent 80% or more of the net income generated by retail banks. Affluent customers usually regard their relationship with their provider of wealth management services as very important, the report added. As a result, most financial advisory companies and banks are targeting wealthy individuals. But this trend will change in the future, as young Americans, whom Deloitte calls “re-wired” investors, are showing a great interest in wealth management. To capture this potential customer base, financial advisory firms will have to change their attitude and practices, as Generation Z, Generation Y and even Baby Boomers are skeptical of authority and old investment methods.

Deloitte also predicts and data-driven approaches, AI and machine learning will disrupt the wealth management and financial advisory sectors. A survey by Corporate Insight said that the total assets of the 11 leading robo advisors in the US jumped 65% in just one year.

Challenges for the Financial Advisory Industry

The rise in aged population presents a challenge as well an opportunity for financial advisory companies. According to U.S. Census Bureau, in less than two decades, adults will outnumber kids in the country. Financial advisory firms will benefit from the increasing number of individuals concerned for their retirement plans. But the graying of population problem is also affecting the industry. Deloitte said that 1/3 of the current workforce in the wealth management industry will retire in the next 10 years. Financial advisory companies will have to recruit and train nearly 240,000 advisors to maintain current service levels. The generational gap between advisors and customers also presents a significant challenge for the industry.

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With this context of the industry in mind, let’s take a look at 10 best financial advisory firms to buy now.

10. UBS Group AG (NYSE: UBS)

UBS is a Swiss investment banking and financial services company. The company offers private investment advice to individuals and businesses. It is registered with the U.S. SEC as an investment adviser. UBS shares recently rallied after the company announced a $4.5 billion share repurchase program. For 2020, UBS board plans to propose a dividend of 37 cents per share, down from the dividend of 73 cents for 2019.

A total of 17 hedge funds tracked by Insider Money held long positions in UBS Group at the end of the third quarter.

Read: Is UBS A Good Stock To Buy Now?

9. Northern Trust Corporation (NASDAQ: NTRS)

Illinois-based Northern Trust offers financial services to corporations, institutional investors and individuals. According to an estimate, about 20% of the wealthiest families in the U.S. are using Northern Trust’s wealth management services. In the fourth quarter, the company posted GAAP EPS of $1.12, missing the consensus estimate by $0.37. Revenue in the quarter came in at $1.53 billion, beating the Street’s estimate by $30 million.

A total of 28 hedge funds tracked by Insider Monkey held stakes in Northern Trust entering the fourth quarter.

Here’s what Diamond Hill Capital said about NTRS in their Q1 2020 Investor Letter:

“We took advantage of the recent market dislocation to add a position in high-quality financial services company Northern Trust Corp., one of the largest providers of advisory (private banking) and custody and administrative services in the U.S. The company is also a leading provider of wealth management, asset servicing, asset management, and banking to corporations, institutions, affluent families, and individuals. The business is relatively resilient with attractive returns on equity and a stable dividend and management has proven to be excellent stewards of capital over long periods of time.”

Read: Were Hedge Funds Wrong About Northern Trust Corporation (NTRS)?

8. Credit Suisse Group AG (NYSE: CS)

Switzerland-based Credit Suisse offers wealth management, investment banking and financial services. The company’s experts offer premium advice to individuals and businesses about asset management, investment and strategies to achieve financial goals. In December 2020, Credit Suisse said that it plans to restart share buybacks in January 2021 of up to $1.7 billion. The bank will also continue to accrue for at least 5% dividend growth per year.

As of the end of the third quarter, Jim Simons’ Renaissance Technologies owns 2.48 million shares of the company, worth $24.68 million. A total of 29 hedge funds are bullish on Credit Suisse, according to data by Insider Monkey.

7. T. Rowe Price Group Inc (NASDAQ: TROW)

T. Rowe Price Group Inc is one of the 10 best financial advisory firms to buy now. The company offers advisory services, account management and retirement plans for individuals and businesses. The Maryland-based company has about $1.3 trillion assets under its management. In the fourth quarter, T. Rowe Price assets jumped 12%, driven by $2.2 billion of inflows and strong market gains. Adjusted EPS in the period totaled $2.89, crushing the Street’s estimate of$2.63.

Cliff Asness’ AQR Capital Management owns 846,212 shares of the company, worth $108.43 million. Overall, 34 hedge funds tracked by Insider Monkey held long positions in TROW.

6. BlackRock, Inc. (NYSE: BLK)

BlackRock is one of the largest financial advisory companies in the world, with about $8.67 trillion in assets under management and operations in over 30 countries all over the world. Recent regulatory filings show that the company is planning to invest in derivatives that draw value from financial instruments including Bitcoin. The company’s net inflows in the fourth quarter came in at $127 billion, driven by strength in iShares.

As of the end of the third quarter, 39 hedge funds tracked by Insider Monkey held long positions in BlackRock. The total value of these stakes is $922.7 million.

Read: BlackRock Inc. (BLK) A Bull Case Theory

5. Goldman Sachs Group Inc (NYSE: GS)

New York-based Goldman Sachs provides investment management, securities, asset management, prime brokerage and securities underwriting services. The company offers private wealth management services and advises investment options based on financial profile, lifestyle objectives and attitude toward risk. In the fourth quarter, Goldman’s revenue jumped 18% on a year-over-year basis to reach $11.74 billion. EPS in the period came in at $12.08, above the Wall Street estimate of $7.36 .

Ken Fisher’s Fisher Asset Management owns 2.48 million shares of Goldman, as of the end of the third quarter. The stake’s total worth is 652.86 million. A total of 70 hedge funds in Insider Monkey’s database are bullish on the company.

Read: Goldman Sachs (GS) Shares Down Despite Strong Quarterly Performance

4. Morgan Stanley (NYSE: MS)

Morgan Stanley is one of the 10 best financial advisory firms to buy now. The company offers wealth management services under Morgan Stanley Wealth Management. Fox Business recently reported that Morgan Stanley is getting a $100 million “slice” of Steven Cohen’s hedge fund Point72.

As of the end of the third quarter, 70 hedge funds of the 816 tracked by Insider Monkey held stakes in Morgan Stanley, up from 61 funds a quarter earlier.

Read: Is Morgan Stanley (MS) A Good Stock To Buy Now?

3. Bank of America Corp (NYSE: BAC)

Bank of America is one of the 10 best financial advisory firms to buy now. The bank offers investment, financial and wealth management advice under Merrill Private Wealth Management. The bank’s wealth management service offers personalized wealth management products and services, including brokerage and investment advisory services.

Bank of America saw signs of recovery in the fourth quarter of 2020, mainly because of increasing consumer spending, improving loan demand by commercial customers and strong investment activity.

A total of 88 hedge funds tracked by Insider Monkey held stakes in the company at the end of the third quarter.

2. Wells Fargo & Co (NYSE: WFC)

Wells Fargo offers financial advisory services under its Wells Fargo Advisors banner. The stock was recently upgraded by Credit Suisse to Outperform from Neutral. Credit Suisse analyst Susan Roth Katzke said in a report that Wells Fargo provided clarity about its path to recovery and strong returns. The analyst increased Wells Fargo price target to $40 from $30.

At the end of the third quarter, 90 elite hedge funds tracked by Insider Monkey reported owning stakes in Wells Fargo. The total value of these stakes is $8.47 billion.

Argosy Investors said the following about WFC stock in their Q4 2020 Investor Letter:

“Most of us are familiar with Wells Fargo (WFC); they are one of the top 5 banks in the U.S. with nearly $2 trillion in assets. The last 5 years have not been good to Wells. They are on their 3rd CEO during that time, and the current one stays in New York City despite headquarters being in San Francisco. Wells Fargo opened millions of fake accounts for customers over several years, driven by an incentive system that compensated branches based on their account openings. This goes to show you the perverse power of incentives, if not properly balanced. To atone for their sins, Wells Fargo is operating under an asset cap which prevents the bank from growing and must demonstrate stronger risk management. Not that long ago, Wells Fargo was the most admired large bank on Wall Street, with the highest valuation and glowing reviews about its low cost of funds driving sustainably high returns on equity. Now, it has the lowest valuation on Wall Street and no one talks about the good old days with Wells.

I believe that there is nothing fundamentally wrong with Wells Fargo’s business that cannot be fixed, and once they can return to normal operations without the fake account nonsense then I expect they will return to earning returns slightly lower than historical norms. If Wells Fargo uses 100% of its earnings to repurchase share over the next 3 years, Wells can retire 25% of its outstanding stock. By 2023, WFC could earn $6+ per share. At 10x earnings, a very low multiple given the rest of the stock market trades at 22x earnings, Wells Fargo could fetch $60 per share. WFC’s current share price is $33 and our cost basis is around $25 per share. If it takes 5 years for Wells to get out of the penalty box and trade at $60 per share, we can earn a 20% annual return on our investment, including dividends.”

Read: Is Wells Fargo (WFC) Stock a Buy For 2021?

1. JPMorgan Chase & Co. (NYSE: JPM)

With over $3.2 trillion worth of assets under management, JPMorgan is one of the largest investment banking companies in the world, providing wealth advisory, commercial banking, retail banking and underwriting services. JPMorgan operates its wealth management business under JPMorgan Wealth Management, which offers products and services for individual and corporate entities.

JPMorgan expects a spike in its 2021 noninterest expense because of non-technology investments, CCB volume growth and AWM distribution fees.

Overall, 118 hedge funds tracked by Insider Monkey had JPMorgan in their portfolios entering the fourth quarter.

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