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.
9. KKR & Co. Inc. (NYSE:KKR)
KKR & Co. Inc. (NYSE:KKR) is one of the 10 best financial stocks with highest upside potential.
On March 2, Barclays reduced the firm’s price target on KKR & Co. Inc. (NYSE:KKR) from $136 to $127. The firm maintained an Overweight rating on the shares, which still yields an adjusted upside of more than 51%.
Prior to that, on February 6, Chris Kotowski from Oppenheimer decreased the firm’s price target on KKR & Co. Inc. (NYSE:KKR) to $187 from $190, which leads to a revised upside potential of almost 123% at the prevailing level. The analyst also maintained his Outperform rating on the stock.
Kotowski noted that the stock exhibited a sharp 5.4% decline on the quarterly announcement day, despite posting solid results. Trading volumes observed during the day were 3.5 times higher than the average daily trading volume for the stock. The analyst viewed this price movement as an investor overreaction, which was largely driven by concerns related to private credit portfolios’ exposure towards the software segment. With no fundamental issues across the business, Kotowski reflected on KKR’s software exposure, which is just 7% of its total assets under management. This is significantly lower than the average for diversified holdings space.
KKR & Co. Inc. (NYSE:KKR) is a global private equity and real estate investment firm that specializes in direct and fund-of-fund investments. The company focuses on different types of investments across various asset classes. These include LBOs, MBOs, special situation acquisitions, mature investments, distressed investments, turnarounds, and more.
8. UWM Holdings Corp (NYSE:UWMC)
UWM Holdings Corp (NYSE:UWMC) is one of the 10 best financial stocks with highest upside potential.
On March 10, BTIG reiterated a Buy rating on UWM Holdings Corp (NYSE:UWMC) with a $10 price target, following the company’s increased revenue outlook ahead of the March 16 merger vote.
The firm is confident that Two Harbors (TWO) shareholders will approve the merger. UWM is one of the more compelling opportunities from a near-term perspective, and potentially the stock can rise by over 10% quickly if interest rate volatility stabilizes. BTIG’s forecast leads to a potential upside of more than 167% at the current level.
On February 26, Jefferies reduced the firm’s price target on UWM Holdings Corp (NYSE:UWMC) to $4.40 from $5. The firm maintained a Hold rating on the shares, which still yields an adjusted upside potential of almost 18%.
Jefferies stated that the company’s first-quarter revenue guidance of $650 million to $850 million has reset the near-term expectations. The firm also noted that the absence of a Q&A session on the earnings call was described as a format decision rather than being tied to any transaction, though the reduced transparency did result in amplified investor uncertainty.
UWM Holdings Corp (NYSE:UWMC) specializes in the origination, sale, and servicing of residential mortgage loans. Operating primarily through a wholesale channel, the company focuses on conforming and government-backed lending. They provide comprehensive mortgage solutions and serve as a key player in the industry by connecting borrowers with essential residential financing options.
7. Ares Management Corp (NYSE:ARES)
Ares Management Corp (NYSE:ARES) is one of the 10 best financial stocks with highest upside potential.
During a presentation at the RBC Capital Markets’ Global Financial Institutions Conference on March 11, Michael Arougheti, CEO of Ares Management Corp (NYSE:ARES), discussed the company’s strategic positioning and market outlook.
According to Arougheti, 25% of Ares’ growth history has resulted from acquisitions. The company focuses on growth opportunities in areas of competitive advantage and allows for autonomy of acquired businesses to maintain specialization. It is also committed towards addressing opportunities in the private credit, secondaries, real estate, and infrastructure sectors, through strong primary information advantages from thousands of investments worldwide.
Arougheti mentioned that the company’s current portfolio fundamentals are strong and that it is witnessing double-digit cash flow growth and zero percent non-accruals in its non-traded BDC with 900 borrowers. He also highlighted the Ares Charitable Foundation, which focuses on donating a significant percentage of performance income to philanthropy.
On February 24, RBC Capital analyst Bart Dziarski assumed coverage of Ares Management Corp (NYSE:ARES), who lowered the firm’s price target on the shares to $173 from $180. The analyst maintained an Outperform rating on the stock.
Dziarski noted that with about 65% of Ares’ managed assets tied to private credit, the company has been caught up in the broader negative sentiment surrounding the sector.
Ares Management Corp (NYSE:ARES) functions as a versatile alternative asset manager with expertise in direct lending, private equity, and real estate. The firm focuses on empowering middle-market companies and commercial real estate operators by providing tailored financing, growth capital, and strategic investment support across a wide range of global industries.
6. Stepstone Group Inc. (NASDAQ:STEP)
Stepstone Group Inc. (NASDAQ:STEP) is one of the 10 best financial stocks with highest upside potential.
On March 10, Stepstone Group Inc. (NASDAQ:STEP) disclosed that the board had approved a program for repurchasing up to $100 million worth of the company’s Class A common stock. The company’s Head of Strategy, Mike McCabe, reflected on its capital-efficient business model, which generates substantial free cash flow to support consistent quarterly dividend growth. McCabe stated:
“In addition to our normal quarterly dividend, we intend to balance paying a recurring annual supplemental dividend with retaining flexibility to adjust that supplemental payout as we evaluate the most compelling uses of capital. The authorization of a share repurchase program adds another attractive and opportunistic lever to our capital-allocation framework.”
On March 2, Barclays upgraded Stepstone Group Inc. (NASDAQ:STEP) to Overweight from an Equal Weight rating. The firm lowered its price target on the shares to $55 from $67. The firm noted that StepStone has relatively less exposure to potential AI-related threats for portfolio companies. It believes the stock’s selloff since late January has created a more attractive entry point for investors.
Stepstone Group Inc. (NASDAQ:STEP) is a private equity and venture capital firm specializing in primary, secondary, and co-investments. They support mature and middle-market companies across a wide range of sectors, from technology and healthcare to infrastructure and clean energy. The firm provides flexible capital solutions, including minority and majority ownership stakes.
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