In this article, we will take a look at the 10 best financial stocks to buy according to billionaire Israel Englander.
Millennium Management‘s decision to offer up 15% of the firm to investors turned out to be one of the biggest industry stories of 2025. The giant entity was valued at $14 billion in the deal, and while there is no timetable for founder Israel Englander to step down, Millennium has established a strong leadership team ready to take over when the billionaire leaves. In addition, this is the first time Izzy Englander has sold equity in the company’s nearly 4-decade history.
The latest deal unfolds as the firm expands substantially, now managing more than $79 billion in assets and over 330 investment teams. Millennium’s assets have doubled since mid-2019, aided by raising capital and an annualized return rate of approximately 14%.
Even so, 2025 has not been without its challenges for the hedge fund. Millennium suffered losses during the turbulent spring, when President Trump imposed tariffs. Moreover, one of the giant’s preferred trades, index rebalancing, suffered significant losses in November, totaling hundreds of millions of dollars.
With that backdrop, let’s explore our list of the best financial stocks to buy according to billionaire Israel Englander.
Israel Englander of Millennium Management
Our Methodology
To curate our list of the 10 best financial stocks to buy according to billionaire Israel Englander, we scanned Millennium Management’s Q3 2025 13F filings, using Insider Monkey’s 13F database.
We have added the performance of each stock from the end of Q3 2025 through January 20, providing readers with insight into how Millennium Management’s portfolio picks have performed so far.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
10. Zions Bancorporation, National Association (NASDAQ:ZION)
Share Price Performance (Sep 30 – Jan 20): 4.44%
Millennium Management’s Q3 Stake Value: $169.3 million
Number of Hedge Fund Holders: 37
Zions Bancorporation, National Association (NASDAQ:ZION) ranks among the best financial stocks to buy according to billionaire Israel Englander. On December 22, JPMorgan analyst Anthony Elian maintained a Neutral rating on Zions Bancorporation, National Association (NASDAQ:ZION) and raised the price target to $67, up from $62. The analyst predicts “solid upside potential” for regional banks in 2026, citing favorable drivers such as additional Fed rate cuts, consistent rise in loans, and increased M&A activity.
Separately, Evercore ISI increased its price target for Zions Bancorporation, National Association (NASDAQ:ZION) to $65 from $61 on December 15, while keeping an Outperform rating on it. The boost came after an investor meeting in NYC with Zions Chairman and CEO Harris Simmons and FP&A and IR Director Shannon Drage.
The firm stated that Zions’ management is dedicated to creating significant operating leverage in 2026, with share buybacks possibly on the cards. At the same time, balance-sheet growth is projected to accelerate as commercial loan and SBA trends increase.
Zions Bancorporation, National Association (NASDAQ:ZION) is a Utah-based regional bank that offers commercial and small business banking, retail banking, investment banking, real estate financing, and wealth management.
9. Citigroup Inc. (NYSE:C)
Share Price Performance (Sep 30 – Jan 20): 11.13%
Millennium Management’s Q3 Stake Value: $247.26 million
Number of Hedge Fund Holders: 107
Citigroup Inc. (NYSE:C) ranks among the best financial stocks to buy according to billionaire Israel Englander. RBC Capital reaffirmed an Outperform rating and a $121 price target for Citigroup Inc. (NYSE:C) on January 15, following the bank’s solid quarterly results. The company announced adjusted earnings per share of $1.81, exceeding analysts’ projections of $1.70.
Citigroup Inc. (NYSE:C) management indicated confidence in meeting their medium-term goals of 10-11% Return on Tangible Common Equity (ROTCE) in 2026, compared with 7.7% in 2025. The bank’s Services division ranked as its strongest branch, with a 36% ROTCE, which was followed by U.S. Personal Banking at 14%, and Banking at 13%.
Looking ahead, RBC Capital believes that moderate revenue growth and a heavy emphasis on expense management will be the major drivers for Citigroup Inc. (NYSE:C) to meet its financial goals, noting that, although the targets appear realistic and doable, execution will be critical.
Citigroup Inc. (NYSE:C) is a diversified financial services holding company that provides a range of products and services to consumers, corporations, governments, and institutions. It operates through five segments: Services, Markets, Banking, US Personal Banking, and Wealth.
8. US Bancorp (NYSE:USB)
Share Price Performance (Sep 30 – Jan 20): 12.52%
Millennium Management’s Q3 Stake Value: $276.04 million
Number of Hedge Fund Holders: 56
US Bancorp (NYSE:USB) ranks among the best financial stocks to buy according to billionaire Israel Englander. On January 13, Raymond James reiterated its Strong Buy rating on US Bancorp (NYSE:USB) and set a price target of $57 per share following the bank’s acquisition announcement. According to the firm, the acquisition of BTIG is consistent with US Bancorp’s strategy of targeting additional fee-based businesses instead of depository M&As.
The acquisition is projected to enhance US Bancorp’s capital markets division, with Raymond James adding that the two entities have a track record of cooperation, which should help facilitate the integration process.
On the other hand, Wolfe Research downgraded US Bancorp (NYSE:USB) from Outperform to Peer Perform, noting decreased upside potential despite the bank’s strong growth track. The firm forecasts that US Bancorp’s core earnings per share will increase at a 10% CAGR through 2027 relative to 2025, though it sees little upside to the 2027 consensus projections and expects ROTCE to remain in the high teens.
US Bancorp (NYSE:USB) is a bank holding company that offers financial services, including cash management, lending, and depository services, foreign exchange, and trust and investment management.
7. Capital One Financial Corporation (NYSE:COF)
Share Price Performance (Sep 30 – Jan 20): 7.59%
Millennium Management’s Q3 Stake Value: $294.3 million
Number of Hedge Fund Holders: 129
Capital One Financial Corporation (NYSE:COF) ranks among the best financial stocks to buy according to billionaire Israel Englander. On January 12, JPMorgan analyst Richard Shane boosted Capital One Financial Corporation (NYSE:COF)’s price target to $256 from $237 while maintaining a Neutral rating on the company’s shares. The hike comes after President Trump’s proposal directing issuers to cap credit card interest rates to 10% for a year, adding to the industry’s near-term volatility.
If enacted, this rate drop, according to JPMorgan, “would fundamentally reshape the card industry, substantially reducing profitability for issuers and access to credit for consumers.” It considers the President’s decision to be a “high-severity, low-probability risk, likely subject to significant legal challenges.”
Moreover, BTIG raised its price target for Capital One Financial Corporation (NYSE:COF) to $308 from $264 back in late December, while keeping a Buy rating on the company’s shares. Capital One Financial Corporation (NYSE:COF) remains BTIG’s top pick for the first half of 2026, with the firm projecting a bull-case upside of $450, as investors remain wary of the Discover deal’s benefits.
Capital One Financial Corporation (NYSE:COF) operates as the financial services holding company for Capital One, National Association, which provides various financial products and services in the US, Canada, and the UK.
6. The Carlyle Group Inc. (NASDAQ:CG)
Share Price Performance (Sep 30 – Jan 20): -1.42%
Millennium Management’s Q3 Stake Value: $309.1 million
Number of Hedge Fund Holders: 36
The Carlyle Group Inc. (NASDAQ:CG) ranks among the best financial stocks to buy according to billionaire Israel Englander. On January 14, TD Cowen analyst Bill Katz cut his price target for The Carlyle Group Inc. (NASDAQ:CG) to $76 from $77, while maintaining a Buy rating. The firm’s position remains essentially positive on Traditional Asset Managers, though with a tighter concentration on higher-conviction ideas, while keeping an eye on Alternatives with a shift toward more “Higher for Longer” strategy and less 2026 beta.
Separately, on December 11, UBS initiated coverage of The Carlyle Group Inc. (NASDAQ:CG), with a Buy rating and a price target of $74. UBS underlined Carlyle’s increasing potential in management fees, predicting a 7% CAGR from 2025 to 2027, compared to only 2-3% growth in the previous two years.
UBS predicts that The Carlyle Group Inc. (NASDAQ:CG) may increase its fee-based earnings margins to 50.5% by 2027, up from around 48% in 2025, by minimizing compensation costs and harnessing investments taken since CEO Harvey Schwartz entered the business.
The Carlyle Group Inc. (NASDAQ:CG), one of the world’s largest investment firms, is an American multinational company with operations in private equity, alternative asset management, and financial services.
5. LPL Financial Holdings Inc. (NASDAQ:LPLA)
Share Price Performance (Sep 30 – Jan 20): 10.29%
Millennium Management’s Q3 Stake Value: $350.37 million
Number of Hedge Fund Holders: 48
LPL Financial Holdings Inc. (NASDAQ:LPLA) ranks among the best financial stocks to buy according to billionaire Israel Englander. On December 11, UBS began coverage of LPL Financial Holdings Inc. (NASDAQ:LPLA) with a Neutral rating and a $406 price target. The firm noted LPL’s solid brand and prominence in the independent wealth sector as favorable characteristics, and that shares appear fairly valued after recovering from their October lows.
UBS anticipates recruitment and organic growth to rebound to the high single-digit range after the Commonwealth acquisition, though the firm stated that these targets are already built into consensus projections. LPL’s ICA duration structure, with 66% fixed, seems to reduce interest rate risk, as do enhanced asset and client cash levels.
That said, UBS raised caution about expense assumptions, with its 2026-2027 EPS forecasts around 7% below consensus, although the firm admitted that the stock’s valuation at 12.2x 2027 anticipated earnings seems decent.
LPL Financial Holdings Inc. (NASDAQ:LPLA) is an independent broker-dealer and investment advisory firm in the U.S. that offers technology, brokerage, and advisory services to financial professionals and institutions.
4. The Charles Schwab Corporation (NYSE:SCHW)
Share Price Performance (Sep 30 – Jan 20): 5.78%
Millennium Management’s Q3 Stake Value: $411.04 million
Number of Hedge Fund Holders: 99
The Charles Schwab Corporation (NYSE:SCHW) ranks among the best financial stocks to buy according to billionaire Israel Englander. On January 12, Citizens boosted its price target for The Charles Schwab Corporation (NYSE:SCHW) to $120 from $110, maintaining a Market Outperform rating on the company’s shares. Citizens stated that its expectations for The Charles Schwab Corporation (NYSE:SCHW) are persistently above the consensus into 2026, with the firm’s forecasts coming in around 6% higher.
Moreover, Raymond James raised its price target for The Charles Schwab Corporation (NYSE:SCHW) to $114 from $110 on January 5, retaining a Strong Buy rating. The firm highlighted Schwab’s improving financial picture, noting that the company has largely paid off its high-cost capital and expects to invest in maturing securities at greater returns.
Raymond James highlighted that Schwab’s retail trading activity continues to be healthy, as does its margin loan utilization. The firm was also encouraged by strong trends in net new assets and account growth. According to the firm, Charles Schwab’s earnings per share are also expected to increase significantly by 2026, while the company’s current valuation has room for growth.
The Charles Schwab Corporation (NYSE:SCHW) is a savings and loan holding company that engages in securities brokerage, wealth management, custody, asset management, and financial advisory services.
3. JPMorgan Chase & Co. (NYSE:JPM)
Share Price Performance (Sep 30 – Jan 20): -4.02%
Millennium Management’s Q3 Stake Value: $439.87 million
Number of Hedge Fund Holders: 120
JPMorgan Chase & Co. (NYSE:JPM) ranks among the best financial stocks to buy according to billionaire Israel Englander. On January 14, Truist Securities boosted its price target for JPMorgan Chase & Co. (NYSE:JPM) to $334 from $331 while keeping a Hold rating. The rise follows JPMorgan’s fourth-quarter earnings, which revealed an EPS of $4.63, or $5.23 after accounting for a reserve buildup related to the Apple Card program.
According to the results, JPMorgan Chase & Co. (NYSE:JPM) reaffirmed its 2026 net interest income (NII) estimate, excluding markets, at $95 billion, while introducing a revised total NII forecast of $103 billion, which is 2% higher than current market expectations.
Meanwhile, a week earlier, BofA Securities boosted its price target for JPMorgan Chase & Co. (NYSE:JPM) to $362 from $350, citing the bank’s solid footing across several business lines, including global markets, global private banking, and wholesale banking.
BofA Securities also emphasized the bank’s technological leadership in areas such as online banking and blockchain, which it believes offers “significant strategic optionality” for JPMorgan Chase & Co. (NYSE:JPM) to boost customer wallet share and tap new revenue sources.
JPMorgan Chase & Co. (NYSE:JPM) is a multinational financial services company that offers investment banking, in addition to consumer and small-business financial services. It also offers commercial banking, asset management, and financial transaction processing.
2. Bank of America Corporation (NYSE:BAC)
Share Price Performance (Sep 30 – Jan 20): 0.99%
Millennium Management’s Q3 Stake Value: $526.25 million
Number of Hedge Fund Holders: 111
Bank of America Corporation (NYSE:BAC) ranks among the best financial stocks to buy according to billionaire Israel Englander. On January 7, Wolfe Research downgraded Bank of America Corporation (NYSE:BAC) from Outperform to Peer Perform, citing limited growth and concerns about a rise in expenses in 2026. The firm added that, although Bank of America Corporation (NYSE:BAC) has outpaced both the overall market and the banking sector since Wolfe’s early 2024 rating, its projected earnings tailwinds have been reflected in consensus forecasts.
The firm also noted that Bank of America’s valuation disparity has decreased when compared to competitors such as Wells Fargo (WFC), with BAC shares currently trading roughly on par with WFC based on Wolfe’s 2027 earnings forecasts, while facing greater negative correction risk.
In its 2026 Outlook Sentiment survey, the firm found that Bank of America Corporation (NYSE:BAC) was among the most packed positions, indicating a less favorable posture, and deemed that the stock currently offers a mere 9% potential gain.
Bank of America Corporation (NYSE:BAC), through its subsidiaries, provides a range of financial products and services to individual consumers, small- and middle-market businesses, institutional investors, large corporations, and governments worldwide.
1. Morgan Stanley (NYSE:MS)
Share Price Performance (Sep 30 – Jan 20): 14.56%
Millennium Management’s Q3 Stake Value: $559.89 million
Number of Hedge Fund Holders: 69
Morgan Stanley (NYSE:MS) ranks among the best financial stocks to buy according to billionaire Israel Englander. BofA Securities boosted Morgan Stanley (NYSE:MS)’s price target to $210 from $180 on January 7, retaining a Buy rating for the investment bank’s shares. The increase represents what BofA calls Morgan Stanley’s “strong franchise value,” as well as cyclical tailwinds in capital markets and an overall shift in the regulatory system.
BofA Securities predicts a record year for M&A volumes and major technology IPOs, which could help Morgan Stanley’s stock valuation. According to the firm’s forecast, earnings per share will expand by 10% on average in fiscal years 2026 and 2027, with potential gains from higher revenue growth and surplus capital deployment.
Moreover, Morgan Stanley’s Investment Management division is expanding into cryptocurrencies, issuing first registration filings with the SEC for two cryptocurrency exchange-traded products, the Morgan Stanley Bitcoin Trust and the Morgan Stanley Solana Trust.
Morgan Stanley (NYSE:MS) is a global financial services company, headquartered in New York, that provides a range of investment banking, securities, wealth management, and investment management services to corporations, financial institutions, governments, and individuals.
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