At the beginning of 2026, Donald Trump announced plans to cap credit card interest rates at 10%. Trump received support from Senator Bernie Sanders, who sided with the president by saying the move ‘makes sense’:
“But, I have to admit, there is one issue that Trump has identified that does make sense. He is right when he says that big banks are ripping off the American people with outrageously high credit card interest rates.”
Bank stocks fell as a result of the announcement, driving Bernie Sanders’ point home that the interests of the elite are not aligned with the average American.
It isn’t surprising that Wall Street has a different opinion from the government. Brian Jacobsen, chief economic strategist at Annex Wealth Management, believes discussions in Congress rather than direct executive decisions would help resolve the problems in a much better way and also remove the uncertainty surrounding banking stocks:
“For now, it’s an overhang, but that overhang could clear quickly if it’s more a call for Congress to do something instead of some specific policy action by the executive office”
Banks are ready to push back against the potential decision, not ruling out legal action against the government. Jamie Dimon, CEO of JPMorgan, said everything was on the table as far as the bank’s reaction was concerned.
Short-term headwinds like these often bring about buying opportunities for long-term investors, which is exactly why we decided to look at the 10 best financial stocks to buy for the long term.
Our Methodology
To come up with our list of the 10 Best Financial Stocks to Buy for the Long Term, we considered stocks from the financials sector with a market cap of at least $2 billion. We then identified companies expected to grow revenue by at least 15% per year over the next 5 years. We also ensured these were profitable companies with positive forward EPS growth. We then assessed their potential upside and ranked them in ascending order. The number of hedge funds that hold the stock as of Q3 2025 is also included in our list.
Why do we care about what hedge funds do? 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).
All the share price data in the article is as per market close on February 4.
10. Manulife Financial Corporation (NYSE:MFC)
Potential Upside: 5.46%
Number of Hedge Fund Holders: 34
On February 2, Jefferies analyst John Aiken raised the firm’s price target on Manulife Financial Corporation (NYSE:MFC) from $39.64 to $42.58 while keeping a Buy rating. The upward-adjusted price target offers an additional 13.5% upside from the current levels.
In addition to Jefferies, Alex Scott, an analyst at Barclays, also raised the firm’s price target on Manulife Financial Corporation (NYSE:MFC) from C$49 to C$52 on January 8. He also kept a Hold rating on the stock. The firm’s revised price target reflects a slight downside of approximately 1% from the current levels. The price target revision was made as part of Barclays broader 2026 sector outlook.
Looking ahead to 2026, the firm said that it is cautiously optimistic about the life insurance sector. It cited steady cash flow generation, solid capital levels, and ongoing industry consolidation which help balance pressures from spread compression and higher technology investment.
Manulife Financial Corporation (NYSE:MFC) offers financial services and products across the United States, Asia, Canada, and internationally. The company operates in the Insurance and Annuity Products, Wealth & Asset Management Businesses, and Corporate & Other segments. It also provides integrated banking products and services.
9. HA Sustainable Infrastructure Capital, Inc. (NYSE:HASI)
Potential Upside: 11.58%
Number of Hedge Fund Holders: 17
RBC Capital analyst Chris Dendrinos reiterated his Buy rating on HA Sustainable Infrastructure Capital, Inc. (NYSE:HASI) with a price target of $39 on January 20. The firm’s price target suggests a further 13% upside from the current levels.
On January 6, HA Sustainable Infrastructure Capital, Inc. (NYSE:HASI) and Sunrun (RUN) announced the completion of an innovative joint venture aimed at accelerating the deployment of residential solar and battery systems. The collaboration is expected to eventually finance more than 300 megawatts of capacity, supporting over 40,000 home power installations across the United States.
As part of the agreement, HA Sustainable Infrastructure Capital, Inc. (NYSE:HASI) will invest up to $500 million over 18 months into the joint venture. HASI’s structured equity investment is intended to monetize a portion of the long-term cash flows generated by Sunrun’s residential energy assets. This structure not only provides a predictable return for HASI but also allows Sunrun to maintain a long-term ownership stake. According to the companies, this approach is anticipated to deliver a more efficient cost of capital, enhancing overall financial efficiency.
HASI’s Chief Revenue and Strategy Officer, Marc Pangburn, said:
“Together, HASI and Sunrun are accelerating the development of essential infrastructure through home-based energy systems that improve grid reliability and address growing power demand.”
HA Sustainable Infrastructure Capital, Inc. (NYSE:HASI) invests in sustainable infrastructure and energy-efficiency markets across the United States. Its portfolio consists of commercial & government receivables, debt securities, equity investments, and real estate. The company invests in Grid-Connected, climate solutions, and Fuels, Transport, and Nature, a range of infrastructure assets.
