In this article, we will present the 10 Best Financial Stocks with the Highest Upside Potential.
On March 12, BNP Paribas released insights around the global securities lending market, noting that the past year unfolded largely as expected. It was shaped by macroeconomic shifts, evolving regulations, and changing market structures. Those forces drove periodic volatility across markets, even as rate cuts and strong demand for technology stocks tied to artificial intelligence helped push several major indices to record highs.
Within that backdrop, securities lending emerged as a standout performer. The market generated close to $15 billion in total revenue in 2025, with most asset classes posting double-digit gains year over year. Much of that growth was fueled by a rebound in “specials,” where in-demand securities command higher lending fees after a muted 2024. The strength of this niche also reflects broader momentum across the financial sector, where trading activity, liquidity demand, and balance-sheet optimization continue to create opportunities for banks, asset managers, and lenders. Looking ahead to 2026, uncertainty around global trade policies, currency swings, and divergent monetary strategies could once again reshape market dynamics. At the same time, expanding securities-financing frameworks and growth in emerging markets may open new revenue streams for financial firms.
With these trends unfolding, which financial stocks stand out as the best opportunities for investors right now? Let’s explore our 10 Best Financial Stocks with the Highest Upside Potential.
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Our Methodology
To identify relevant stocks for this article, we screened U.S.-listed financial companies with market capitalizations above $2 billion. Also, we shortlisted only stocks with at least 50% upside potential according to TipRanks consensus as of the March 13 closing. Finally, we selected 10 stocks with the highest upside and ranked them in ascending order.
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 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
10. TPG Inc. (NASDAQ:TPG)
TPG Inc. (NASDAQ:TPG) is one of the 10 best financial stocks with highest upside potential.
On March 2, Barclays reduced its price target on TPG Inc. (NASDAQ:TPG) from $69 to $56. The firm maintained an Overweight rating on the stock, with a revised upside potential of over 43%.
The firm has revised its estimates for the entire alternative asset management segment. While it is still early to determine the full impact of AI on portfolio companies, Barclays lowered earnings estimates related to business development companies. This is based on lower flow assumptions and realization expectations.
Back on February 12, TD Cowen reduced the firm’s price target on TPG Inc. (NASDAQ:TPG) to $49 from $63. The firm maintained its Hold rating on the stock, which still offers an adjusted upside of more than 25% at the current level.
This revision aligns with broader adjustments across the asset management sector, as the firm amends valuation models to account for shifting macroeconomic and micro-industry dynamics. Notably, TD Cowen expressed a strategic preference for alternative asset managers over traditional players, signaling a shift in relative weighting as the firm navigates current market complexities.
TPG Inc. (NASDAQ:TPG) is a global alternative asset manager providing investment management and advisory services. The firm manages diverse investment vehicles, including private equity, real estate, and hedge funds. Their expertise spans capital structuring, debt and equity arrangements, and underwriting, helping limited partners and clients navigate complex financial markets through specialized investment services.
