In this article, we will discuss: 11 Best Financial Services Stocks to Buy Right Now.
Millions of individuals rely on financial services companies for a variety of essential services, such as credit cards, wealth and asset management, and investment products and research.
Deloitte recently released its 2025 Financial Services Industry Predictions Report. The report projects that private capital contributions from retail investors will increase significantly from $80 billion in 2023 to $2.4 trillion by 2030, creating substantial new opportunities as accessibility improves. Platforms for tokenized currencies are anticipated to be used in one out of every four high-value cross-border transfers by 2030, saving companies over $50 billion a year and lowering transaction costs by about 12.5%. Moreover, fee-based risk management revenues in the insurance industry are expected to increase from $21.6 billion in 2023 to $49.5 billion by 2030.
Data centers and senior housing are examples of alternative properties that are predicted to account for over 70% of commercial real estate portfolios by 2034, up from just over 40% at the present time. Active ETFs may raise their assets by 13 times, from $856 billion to $11 trillion by 2035. It is possible that tokenized real estate assets could soar from less than $300 billion in 2024 to $4 trillion in 2035. Furthermore, AI-powered insurance claim fraud prevention could save $80-160 billion by 2032, while AI-driven banking software development could cut expenses by 20-40% by 2028.
Jim Eckenrode, executive director of the Deloitte Center for Financial Services, commented:
“The rapid advancement of technology and evolving market dynamics are creating unprecedented opportunities across the financial services industry,” “Companies that embrace these changes and innovate will likely be well-positioned to thrive in the coming decade. Our predictions highlight the importance of being proactive and forward-thinking in adapting to these transformative trends.”
With that said, here are the 11 Best Financial Services Stocks to Buy Right Now
A financial adviser in a suit talking with a senior client about their life insurance policy.
Methodology
For this article, we sifted through Financial Services ETFs and online rankings to form an initial list of the 20 Best Financial Services Stocks. From the resultant dataset, we chose 11 stocks with the highest number of hedge fund investors, using Insider Monkey’s database of 1000 hedge funds in Q1 2025 to gauge hedge fund sentiment for stocks.
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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
11. American Express Company (NYSE:AXP)
Number of Hedge Fund Holders: 77
American Express Company (NYSE:AXP) placed first in the J.D. Power 2025 U.S. Credit Card Mobile App and Online Satisfaction Studies, winning in all four categories: navigation, visual appeal, speed, and content.
This is the third time that both the Amex app and website have topped the rankings and the fifth time since 2018 that the app has done so. Furthermore, the company’s monthly active users jumped by 8% throughout the previous year.
American Express Company (NYSE:AXP) attributes this recognition to its dedication to user-friendly digital experiences, such as expedited card activation, a redesigned website, tailored content, and easier navigation. The improvements are meant to increase consumer happiness and engagement. The company’s product, engineering, and analytics teams support its continuous innovation in digital services. It is one of the best financial stocks.
Amex further solidified its position as the industry leader in customer experience by ranking first in both the 2025 Consumer Lending Satisfaction Study and the 2024 Small Business Credit Card Satisfaction Study.
10. Blackstone Inc. (NYSE:BX)
Number of Hedge Fund Holders: 81
Blackstone Inc. (NYSE:BX) CEO Steve Schwarzman told Bloomberg Television on June 10 that the company aims to invest up to $500 billion in Europe over the next decade.
Schwarzman saw Europe as a “major opportunity” and stressed the region’s growing investment potential in the context of changing international alignments.
Blackstone Inc. (NYSE:BX), which manages more than $1 trillion in assets, has already invested $100 billion in the UK and employs 650 people in London. Reuters received confirmation of the remarks from a representative.
Major private equity firms are taking notice of Europe’s improved economic situation, which includes more defense spending (particularly Germany’s historic spending plans in March). Although 83% of private equity-backed aerospace and defense agreements since 2020 have gone to the United States and Canada, Blackstone Inc. (NYSE:BX) sees that momentum is growing in Europe.
Schwarzman, a renowned Donald Trump supporter, admitted that businesses have been forced to reorganize their supply chains as a result of changing U.S. trade policies. He stated that these factors support Blackstone Inc. (NYSE:BX)’s aggressive investment strategy by positioning Europe for higher growth rates. It is among the Best Financial Stocks.
9. Apollo Global Management, Inc. (NYSE:APO)
Number of Hedge Fund Holders: 85
The Financial Times reported that Apollo Global Management, Inc. (NYSE:APO) would spend as much as $100 billion in Germany over the next ten years.
This potential investment supports the efforts of Chancellor Friedrich Merz to promote Germany’s economic expansion. Apollo Global Management, Inc. (NYSE:APO) President Jim Zelter pointed out the scope of the possibility, stating, “We see in this country alone the opportunity to put $100 billion in the ground in the next decade.” Currently, Europe accounts for $100 billion of the company’s $800 billion in assets under management.
Apollo Global Management, Inc. (NYSE:APO)’s strong belief in Germany’s long-term economic potential is made clear by this announcement, which places the country at the center of its European investment plan.
According to Zelter, this degree of dedication would be “hard to match around the globe,” focusing on the company’s perception of Germany as being particularly appealing. The possible capital deployment is interpreted as a significant endorsement of Germany’s investment landscape and Merz’s pro-growth policies.
8. Wells Fargo & Company (NYSE:WFC)
Number of Hedge Fund Holders: 88
The 2025 Midyear Outlook from the Wells Fargo & Company (NYSE:WFC) Investment Institute (WFII), headlined “Opportunities amid uneven terrain,” has been revealed.
The report discusses investment ideas for the rest of 2025 and 2026 and responds to substantial regulatory changes in early 2025. Inflation is anticipated to be 3.5% in 2025 and 2.6% in 2026, whereas WFII projects 1.0% GDP growth in 2025 and 1.8% GDP rise in 2026. The target for the S&P Index is set at 6,400-6,600 for 2026 and 5,900-6,100 by the end of the year. The anticipated range of the Fed funds rate in 2025 is 4.00% to 4.25%.
Darrell Cronk, chief investment officer, observed that fresh investment opportunities have been created by market volatility after tariff-driven shocks.
Wells Fargo & Company (NYSE:WFC)’s WFII forecasts a gentle economic landing, rising stock prices, and steady commodity growth despite global uncertainty. It suggests diversifying with foreign assets and alternatives to manage policy and geopolitical risks while concentrating on quality assets, exposure to AI, and income-producing investments. It is ranked eighth on the list of the Best Financial Stocks.
7. The Progressive Corporation (NYSE:PGR)
Number of Hedge Fund Holders: 91
Bank of America boosted The Progressive Corporation (NYSE:PGR)’s price objective to $333 from $326 on June 13, while keeping its Buy rating.
According to the firm’s updated forecast, the number of personal auto policies in force is anticipated to increase by 251,000 in May, compared to its previous estimate of 289,000. The company wrote in a note to investors that this change comes after a study of application data.
BofA’s revised price target shows ongoing confidence in the firm’s earnings potential, even though policy growth estimates have been slightly lowered. The new $333 objective is based on a margin-normalized EPS prediction and valuation parity with the broader market. BofA’s optimistic outlook is reinforced by The Progressive Corporation (NYSE:PGR)’s capacity to maintain growth in the face of fluctuating metrics and margin considerations.
The Progressive Corporation (NYSE:PGR) provides private and commercial auto insurance, as well as specialty lines. It has about 24 million personal auto policies in force and is one of the major auto insurers in the United States. It is one of the best financial stocks.
6. Intercontinental Exchange, Inc. (NYSE:ICE)
Number of Hedge Fund Holders: 94
Intercontinental Exchange, Inc. (NYSE:ICE) has strategically expanded into essential minerals within its energy and environmental markets by launching its first futures contracts based on battery materials.
These markets are already known as the most liquid trading locations for such products. The action is intended to assist clients in managing changing trade flows and geopolitical risks in the critical mineral market.
Intercontinental Exchange, Inc. (NYSE:ICE)’s response to the increasing requirements of energy sector participants who are dealing with greater complexity is reflected in the launch of battery materials futures. Its Global Head of Oil Markets, Jeff Barbuto, noted how these contracts assist clients in controlling their exposure to the changing dynamics of mineral supply chains.
Intercontinental Exchange, Inc. (NYSE:ICE) intends to increase battery material liquidity in addition to its well-established clearing platform and energy derivatives. This project is in line with more general developments in the shift to clean energy, where the need for vital minerals like cobalt and lithium is changing the way commodities are traded internationally. It is one of the best financial stocks.
5. Citigroup Inc. (NYSE:C)
Number of Hedge Fund Holders: 96
Carlyle Group has collaborated with Citigroup Inc. (NYSE:C) to offer asset-backed lending to fintech lenders, the companies announced on June 12.
Both companies are collaborating to share market knowledge and look into co-investment prospects in order to promote the expanding fintech lending industry.
Fintech lending has grown quickly due to growing borrower demand and digital ease, which has led to traditional institutions like Citigroup Inc. (NYSE:C) becoming more involved. As businesses expand, fintech lenders are increasingly looking to investment firms for funding.
Akhil Bansal, head of asset-backed finance at Carlyle, stressed the rising need for customized, scalable solutions. The fastest-growing segment of private lending is asset-backed finance, which is backed by a collection of financial assets.
This transaction shows Citigroup Inc. (NYSE:C)’s larger strategic focus on private lending and strengthens the bank’s $25 billion private credit agreement with Apollo. The collaboration displays Carlyle and Citigroup Inc. (NYSE:C)’s intention to profit from changes in the structure of the credit markets.
4. Bank Of America Corporation (NYSE:BAC)
Number of Hedge Fund Holders: 117
Bank of America Corporation (NYSE:BAC) has made it possible for business clients to use the new $10 million limit for real-time payments on the RTP® network.
This comes after The Clearing House recently raised the ceiling from $1 million. More than half of Bank of America Corporation (NYSE:BAC)’s real-time payment value in the United States now consists of transactions totaling over $1 million in just six weeks. The bank played a key role in the development of the RTP network as a co-owner of The Clearing House.
The increased transaction cap expands BofA clients’ use cases to include real estate closings and corporate deal settlements. Bank of America Corporation (NYSE:BAC)’s head of Global Payments Products, AJ McCray, stated the wider uses and effectiveness that instant payments allow.
GPS Global Corporate Sales co-head Jay Davenport identified advantages like increased cash flow and transparency. The RTP network offers instant settlement and remittance communications and operates around the clock in accordance with ISO 20022 standards. Bank of America Corporation (NYSE:BAC)’s corporate reach spans 94% of the Fortune 500 and 73% of the global Fortune 500. The firm is one of the best financial stocks.
3. Berkshire Hathaway Inc. (NYSE:BRK-B)
Number of Hedge Fund Holders: 125
Berkshire Hathaway Inc. (NYSE:BRK-B) has restarted sales of DaVita, selling 200,010 shares between May 22 and May 27, 2025.
The deal comes after Berkshire Hathaway Inc. (NYSE:BRK-B) made a $116 million sale of 750,000 shares in February. Despite the sales, the firm still has 35.14 million shares in DaVita, making it the company’s largest institutional investor. The healthcare stock, which it originally purchased in 2011, is still the conglomerate’s tenth-largest position.
The new disposal comes after DaVita’s share price skyrocketed, quadrupling since 2011, while the company’s operational difficulties grew.
Ted Weschler, the portfolio manager, is believed to have spearheaded the purchase because he valued DaVita’s effectiveness and shareholder-friendly approach.
Berkshire Hathaway Inc. (NYSE:BRK-B) is a holding company with numerous subsidiaries engaged in various operations. The company’s primary business is insurance, which is mostly handled by Geico, Berkshire Hathaway Primary Group, and Berkshire Hathaway Reinsurance Group. It is among the best financial stocks.
2. Mastercard Incorporated (NYSE:MA)
Number of Hedge Fund Holders: 155
According to Barclays, a recent Wall Street Journal article concerns that stablecoins upending Visa and Mastercard Incorporated (NYSE:MA) are overblown.
The firm maintained its $650 price objective for Mastercard Incorporated (NYSE:MA) and $396 price goal for Visa in a research note, reaffirming their Overweight recommendations on both payment giants. Barclays sees a buying opportunity in any market dip brought on by worries about stablecoins.
Although Barclays recognizes the revolutionary potential of stablecoin technology, it believes that stablecoin adoption will continue to be challenging in the retail payments sector, which is the primary focus of Visa and Mastercard Incorporated (NYSE:MA).
Barclays is still confident in Visa and Mastercard Incorporated (NYSE:MA)’s established positions, even though the Wall Street Journal has highlighted the potential of disruption to existing payment networks. The firm’s optimism originates from its belief that stablecoins, while creative, presently lack the infrastructure and legal certainty required to seriously threaten mainstream payment systems in the foreseeable future. Mastercard Incorporated (NYSE:MA) is one of the best financial stocks.
1. Visa Inc. (NYSE:V)
Number of Hedge Fund Holders: 165
Barclays analyst Ramsey El Assal kept a Buy rating on Visa Inc. (NYSE:V) on June 13 and set a price objective of $396.00.
According to Visa Inc. (NYSE:V)’s most recent financial report, the company generated $9.59 billion in sales and $4.58 billion in net profit for the quarter ended March 31. In comparison, last year, the firm produced $8.78 billion in revenue and a net profit of $4.66 billion.
Visa Inc. (NYSE:V) has been a market leader for a long time and continues to have promising growth potential. Analysts believe that the firm has a wide moat around the company and that its place in the worldwide electronic payment system is almost unchallengeable, even though the payments industry is still evolving.
Visa Inc. (NYSE:V) is the world’s largest payment processor. It handled about $16 trillion in total volume in fiscal 2024. It handles transactions in more than 160 currencies and operates in over 200 countries. Its systems can process more than 65,000 transactions in a second.
While we acknowledge the potential of V to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than V and that has 100x upside potential, check out our report about this cheapest AI stock.
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