In this article, we will take a look at the 13 High-Quality S&P 500 Financial Stocks According to Hedge Funds.
Interest rates are once again in the spotlight among investors in February 2026 amid uncertainty over the next phase of U.S. monetary policy. On February 18, 2026, CNBC reported the minutes from the January 27–28 meeting of the Federal Reserve. The minutes revealed disagreements between officials concerning the future course of interest rates. The benchmark federal funds rate was held steady at 3.5%–3.75%. However, there were arguments for pausing further rate cuts until inflation shows clearer progress toward the 2% target. These disagreements make it difficult to price the cost of capital for the coming period.
Under this market tension, the focus is shifting toward stability. Instead of trying to guess what the Federal Reserve will do next, it is sensible to look for companies that can remain stable and handle these changes. One viable choice is to find strong stocks with support from major professional investors. In this regard, we have compiled a list of 13 high-quality financial stocks that are part of the S&P 500 and are preferred by hedge funds.
With that backdrop, let’s explore our selection of high-quality S&P 500 financial stocks according to hedge funds.
Image by Alexsander-777 from Pixabay
Our Methodology
We compiled our list by screening for S&P 500 financial-sector companies that delivered positive earnings growth over the last five years and maintained a manageable leverage level (debt-to-equity ratio below 1.0). We then ranked stocks in ascending order by the number of hedge funds holding a stake in these companies. For this purpose, we used Q4 2025 hedge fund data from Insider Monkey’s database. All the pricing data are as of market close on February 24, 2026.
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).
13. Assurant, Inc. (NYSE:AIZ)
Number of Hedge Fund Holders: 29
Assurant, Inc. (NYSE:AIZ) is one of the 13 high-quality S&P 500 financial stocks according to hedge funds.
On February 23, 2026, Morgan Stanley analyst Bob Huang maintained a Hold rating on Assurant, Inc. (NYSE:AIZ) with a price target of $248. This marks the second update from Morgan Stanley this month, as the analyst previously reiterated the Hold rating on the stock on February 13, 2026.
Separately, on February 20, 2026, Truist Financial analyst Mark Hughes reiterated a Buy rating on Assurant, Inc. (NYSE:AIZ).
Earlier this month, on February 11, 2026, Assurant, Inc. (NYSE:AIZ) reported its earnings results for the fourth quarter and full year 2025, where it highlighted its ninth consecutive year of profitable growth. Excluding reportable catastrophes, the company’s adjusted EPS stood at $22.81 for the full year – a 12% increase compared to the previous year. The company attributed the growth to strong performance in Global Lifestyle and Home, increased investment income, and favorable loss experience in Auto. For 2026, it has set a share repurchase range of $250 million to $350 million.
Founded in 1892, Assurant, Inc. (NYSE:AIZ) is a leading global business services company specializing in lifestyle and housing protection, with headquarters in Georgia.
12. Erie Indemnity Company (NASDAQ:ERIE)
Number of Hedge Fund Holders: 32
Erie Indemnity Company (NASDAQ:ERIE) is one of the 13 high-quality S&P 500 financial stocks according to hedge funds.
William Blair analyst Adam Klauber, on February 6, 2026, reiterated a Buy rating on Erie Indemnity Company (NASDAQ:ERIE).
In another development, Erie Indemnity Company (NASDAQ:ERIE) reported its Q4 2025 and full-year 2025 earnings results on February 23, 2026. The report highlighted a full-year 2025 net income of $559.3 million, or $10.69 per diluted share – a decrease compared to the $600.3 million in 2024. For the Q4 2025, the company recorded a net income of $63.4 million, or $1.21 per diluted share, down from $152.0 million in the prior year’s quarter. The results were affected by a notable $100 million pre-tax charitable contribution ($80.6 million after-tax) made in the fourth quarter.
Separately, Erie Insurance, on February 20, 2026, announced that the company’s President and CEO, Tim NeCastro, who has been part of the company for 30 years, will retire on December 31, 2026. The management further added that it will immediately seek a successor for the position.
Founded in 1925, Erie Indemnity Company (NASDAQ:ERIE) operates under a unique business model as the managing attorney-in-fact for the Erie Insurance Exchange from its headquarters in Pennsylvania.
11. Raymond James Financial, Inc. (NYSE:RJF)
Number of Hedge Fund Holders: 39
Raymond James Financial, Inc. (NYSE:RJF) is one of the 13 high-quality S&P 500 financial stocks according to hedge funds.
On February 19, 2026, TD Cowen analyst William Katz reiterated a Hold rating on Raymond James Financial, Inc. (NYSE:RJF), while maintaining a price target of $181.
In another development, on February 19, 2026, the company announced that its Board of Directors had declared the quarterly cash dividend of $0.54 per share. Shareholders of record as of April 1, 2026, will be eligible to receive the dividend, which is payable on April 15, 2026.
Prior to these events, Raymond James Financial, Inc. (NYSE:RJF) saw a significant insider activity on February 5, 2026. The company’s Executive Vice President and General Counsel, Jonathan N. Santelli, sold 4,500 shares of the company’s stock in a transaction totaling $767,070. The sale marks a -14% change in Jonathan’s ownership value in the company.
As of February 24, 2026, CNN recorded 31% of 16 analysts following Raymond James Financial, Inc. (NYSE:RJF) are maintaining a Buy rating on the stock, with the 1-year average upside potential standing at 22.15%.
Founded in 1962, Raymond James Financial, Inc. (NYSE:RJF) is a diversified financial services firm operating through segments including Private Client Group (wealth management), Capital Markets, Asset Management, and Raymond James Bank. Its headquarters is in St. Petersburg, Florida.
10. Brown & Brown, Inc. (NYSE:BRO)
Number of Hedge Fund Holders: 42
Brown & Brown, Inc. (NYSE:BRO) is one of the 13 high-quality S&P 500 financial stocks according to hedge funds.
On February 17, 2026, Raymond James lowered the price target on Brown & Brown, Inc. (NYSE:BRO) from $90 to $82 while keeping an Outperform rating on the shares. According to the analyst, insurance brokers and insurance-technology equities have declined by approximately 22% year-to-date, owing to rising investor concerns regarding AI-driven displacement. Despite the volatility, credit spreads and management guidance are stable, suggesting fundamental business health. There may be moderate-level organic growth and margin expansion through 2026. Premium growths are more likely to be supported by sustained investment in AI infrastructure and significant capital expenditures by hyperscalers. Analysts maintain that large-cap brokers remain well-positioned to outperform the broader market.
In another development, on February 17, 2026, Brown & Brown, Inc. (NYSE:BRO) announced that Brown & Brown Dealer Services (BBDS), a division of the company, has acquired the assets of American Adventure Insurance. Mike Neal, president of BBDS, has stated that the American Adventure team will join BBDS to expand its specialized F&I and dealership insurance solutions.
Founded in 1939, Brown & Brown, Inc. (NYSE:BRO) is one of the world’s largest insurance brokerages with headquarters located in Florida.
9. Globe Life Inc. (NYSE:GL)
Number of Hedge Fund Holders: 42
Globe Life Inc. (NYSE:GL) is one of the 13 high-quality S&P 500 financial stocks according to hedge funds.
Globe Life Inc. (NYSE:GL) saw its Buy rating from Morgan Stanley reiterated by the firm’s analyst Bob Huang on February 23, 2026, with a price target of $176.
Prior to this, on February 9, 2026, Michael Clay Majors, the company’s Executive Vice President and Chief Strategy Officer, engaged in a significant insider transaction, selling 30,000 shares of Globe Life Inc. (NYSE:GL)’s stock in a transaction valued at approximately $4.41 million. With this move, Michael reduced his ownership stake in the company by 39%.
Earlier this month, on February 5, 2026, Globe Life Inc. (NYSE:GL) released its fourth-quarter and full-year 2025 earnings results, which highlighted a net income increase to $266 million, or $3.29 per share, up from $255 million, or $3.01 per share, in 2024. Alongside the increase, the company also noted an $8 million decrease in excess investment income due to lower average invested asset growth and lower average earned yield. Its 2026 earnings guidance includes a net operating income range of $14.95 to $15.65 per share.
Founded in 1900, Globe Life Inc. (NYSE:GL) is a provider of life and supplemental health insurance for middle-income families with headquarters in Texas.
8. FactSet Research Systems Inc. (NYSE:FDS)
Number of Hedge Fund Holders: 46
FactSet Research Systems Inc. (NYSE:FDS) is one of the 13 high-quality S&P 500 financial stocks according to hedge funds.
On February 20, 2026, Barclays analyst Manav Patnaik lowered the price target on FactSet Research Systems Inc. (NYSE:FDS) from $300 to $210 while keeping an Underweight rating on the shares. The firm cited intensified investor anxieties, driven by the growth of AI, over the already highly competitive market data vendor sector.
Prior to this, on February 17, 2026, Wells Fargo analyst Jason Haas, CFA, also reiterated a Sell rating on the stock with a price target of $195. Similarly, on the same day, Bank of America analyst Wahid Amid reinstated coverage on FactSet Research Systems Inc. (NYSE:FDS) with an Underperform rating. The firm set a price target of $195 on the stock. This update was part of Bank of America’s renewed coverage of 19 Information and Business Services stocks. According to the analyst, the firm takes a constructive perception of the stocks and anticipates average revenue.
Separately, on February 5, 2026, the company announced a quarterly cash dividend of $1.10 per share payable on March 19, 2026, to shareholders on record as of February 27, 2026.
Founded in 1978, FactSet Research Systems Inc. (NYSE:FDS) is a premier provider of integrated financial data and analytical software for investment professionals with headquarters in Connecticut.
7. Ameriprise Financial, Inc. (NYSE:AMP)
Number of Hedge Fund Holders: 50
Ameriprise Financial, Inc. (NYSE:AMP) is one of the 13 high-quality S&P 500 financial stocks according to hedge funds.
Ameriprise Financial, Inc. (NYSE:AMP) witnessed notable insider activities in February. On February 12, 2026, the CEO of Global Asset Management, William Truscott, sold 5,000 shares of the company’s stock in a transaction valued at $2,660,400, significantly reducing his ownership stake in the company by 22%.
Prior to this transaction, on February 11, 2026, another insider activity occurred in Ameriprise Financial, Inc. (NYSE:AMP). Gumer Alvero, the company’s PRESIDENT-INSURANCE & ANNUITIES, disclosed the sale of 4,658 shares of the company’s stock. The total value of the transaction was $2,528,735.
Another bold move was recorded on February 6, 2026, with a massive sale of 48,813 shares of Ameriprise Financial, Inc. (NYSE:AMP)’s stock by the company’s Chairman & CEO, James Cracchiolo. The transaction’s total value amounted to approximately $26,600,964.
Amid this insider activity, CNN recorded 7 analysts supporting the Buy rating on the stock, with a 1-year average price target of $580 from 14 analysts.
Founded in 1894, Ameriprise Financial, Inc. (NYSE:AMP) is a leader in wealth management and financial planning. The Minnesota-based company operates through Advice & Wealth Management and Asset Management (Columbia Threadneedle).
6. Nasdaq, Inc. (NASDAQ:NDAQ)
Number of Hedge Fund Holders: 51
Nasdaq, Inc. (NASDAQ:NDAQ) is one of the 13 high-quality S&P 500 financial stocks according to hedge funds.
On February 23, 2026, Morgan Stanley analyst Michael Cyprys maintained a Buy rating on Nasdaq, Inc. (NASDAQ:NDAQ) with a price target of $116. In his previous update on the stock on January 30, the firm’s analyst cited cyclical trends to drive Solutions revenue growth through 2026-2027, despite steady tailwinds.
In another development, Barclays analyst Benjamin Budish reiterated a Buy rating on the stock on February 23, 2026, while maintaining a price target of $115. As of February 24, 2026, the stock has received a consensus Buy rating from 19 analysts, with a 1-year median price target of $113, according to CNN.
Separately, earlier this month, on February 13, 2026, Nasdaq, Inc. (NASDAQ:NDAQ) saw a major move from one of the significant investors. AB Investor, a significant shareholder, made a significant purchase of 200,000 shares of the company’s stock. The transaction was valued at $15,835,040. With this transaction, AB Investor has signalled strong confidence in the company’s future progress.
Founded in 1971, Nasdaq, Inc. (NASDAQ:NDAQ) is a leading global financial technology company that provides trading, clearing, and exchange technology with an increasing focus on SaaS-based solutions for financial crime management and regulatory compliance. Its headquarters is located in New York.
5. Synchrony Financial (NYSE:SYF)
Number of Hedge Fund Holders: 54
Synchrony Financial (NYSE:SYF) is one of the 13 high-quality S&P 500 financial stocks according to hedge funds.
On February 19, 2026, Bank of America Securities analyst Mihir Bhatia maintained a Buy rating on Synchrony Financial (NYSE:SYF).
Prior to this, on February 18, 2026, the company announced the expansion of its partnership with Planet DDS by integrating CareCredit as the preferred financing solution across all Planet DDS platforms. Sonia Williams, Senior Vice President and General Manager, Dental, Synchrony Financial (NYSE:SYF) stated:
By integrating CareCredit into their core software, we help practices operate more effectively and strengthen how they connect with patients about their financing options. This simplifies the financial workflow and allows teams to focus on delivering optimal patient care.
In another development, on February 13, 2026, Baird analyst David George upgraded Synchrony Financial (NYSE:SYF) from Neutral to Outperform while maintaining a price target of $83. The analyst noted that the company’s risk-reward profile has improved following recent weakness in the stock price. The firm identifies the current “de-risking” phase as an advantageous entry point for investors, noting that valuations have become more reasonable.
Incorporated in 2003, Synchrony Financial (NYSE:SYF) is the largest provider of private-label credit cards in the U.S. Operating from Connecticut, the company manages financing programs for major brands.
4. CME Group Inc. (NASDAQ:CME)
Number of Hedge Fund Holders: 72
CME Group Inc. (NASDAQ:CME) is one of the 13 high-quality S&P 500 financial stocks according to hedge funds.
On February 19, 2026, the company announced that its regulated cryptocurrency futures and options will begin trading 24 hours a day, seven days a week from May 29 onwards, pending regulatory review. Tim McCourt, Global Head of Equities, FX, and Alternative Products at CME Group Inc. (NASDAQ:CME), stated that this access allows clients to manage their trades more effectively.
While not all markets lend themselves to operating 24/7, providing always-on access to our regulated, transparent Cryptocurrency products ensures clients can manage their exposure and trade with confidence at any time.
Separately, on February 16, 2026, Bank of America raised the target price on CME Group Inc. (NASDAQ:CME) from $229 to $232 while keeping an Underperform rating on the shares. Following the in-line results, the firm raised non-GAAP EPS estimates for Q1 through 2028, citing high commodity volumes but partially offset by higher expenses.
In a more recent development, CME Group Inc. (NASDAQ:CME) saw a significant insider move on February 23, 2026, with Director Bryan Durkin selling 4,200 shares of the company’s stock. The transaction, valued at $1,300,530, results in a -9% change in Bryan’s ownership value in the company.
Founded in 1898, CME Group Inc. (NASDAQ:CME) is a global financial derivatives marketplace operating four major exchanges – CME, CBOT, NYMEX, and COMEX. Its headquarters is located in Illinois.
3. The Progressive Corporation (NYSE:PGR)
Number of Hedge Fund Holders: 80
The Progressive Corporation (NYSE:PGR) is one of the 13 high-quality S&P 500 financial stocks according to hedge funds.
The Progressive Corporation (NYSE:PGR) saw mixed analyst sentiments on February 23, 2026. UBS analyst Brian Meredith lowered the price target on The Progressive Corporation (NYSE:PGR) from $226 to $218, while maintaining a Neutral rating on the shares. On the other hand, Morgan Stanley analyst Bob Huang reiterated a Sell rating on the stock with a price target of $205 on the same day.
Previously, on February 19, 2026, Roth Capital lowered the price target on the stock from $260 to $235 and kept a Buy rating on the shares. In a research note, the analyst observed that year-over-year growth in personal auto policies-in-force reached 12.1%, down from December’s 12.6%. Additionally, the sequential growth rate rose modestly from 0.8% in December to 0.9%.
CNN noted 41% of 27 analyst ratings support a Buy on the stock as of February 24, 2026, with a 1-year average upside of 14.63%.
Founded in 1937, The Progressive Corporation (NYSE:PGR) is a leading American insurance holding company and the second-largest personal auto insurer in the U.S., with headquarters located in Ohio.
2. The Charles Schwab Corporation (NYSE:SCHW)
Number of Hedge Fund Holders: 102
The Charles Schwab Corporation (NYSE:SCHW) is one of the 13 high-quality S&P 500 financial stocks according to hedge funds.
The Charles Schwab Corporation (NYSE:SCHW) saw its Buy rating from Truist Financial reiterated by the firm’s analyst, David Smith CFA, on February 17, 2026. On the same day, Barclays analyst Benjamin Budish also reiterated a Buy rating on the stock, with a price target of $126.
Prior to this, on February 13, 2026, The Charles Schwab Corporation (NYSE:SCHW) released its monthly activity highlights, in which the company cited typical January seasonality and reported January core net new assets of $27.8 billion. Its total client assets reached $12.15 trillion – an 18% year-over-year increase. The company also noted a growth in new brokerage accounts to 476,000, while the daily average trade reached 9.5 million. Margin loan balances finished at $116.3 billion, while transactional sweep cash saw a seasonal decline and reached $433.3 billion.
According to CNN, the stock is a consensus Buy, with Buy ratings from 18 of the 22 covering analysts, and holds a 1-year median upside potential of 31.54% as of February 24, 2026.
Founded in 1971, The Charles Schwab Corporation (NYSE:SCHW) provides a comprehensive suite of wealth management, banking, and asset management services to millions of active accounts. Its headquarters is in Texas.
1. Visa Inc. (NYSE:V)
Number of Hedge Fund Holders: 183
Visa Inc. (NYSE:V) is one of the 13 high-quality S&P 500 financial stocks according to hedge funds.
On February 19, 2026, Wells Fargo reiterated a Buy rating on Visa Inc. (NYSE:V) and a price target of $412.
Separately, on the same day, Visa Inc. (NYSE:V) announced a multi-year renewal and expansion of its partnership with Oracle Red Bull Racing and Visa Cash App Racing Bulls. The agreement, which extends through 2030, increases Visa’s branding on vehicles in addition to securing exclusive retail banking rights. The company’s Chief Marketing Officer gave the following statement.
Both Red Bull Formula 1 Teams give us a dynamic global platform to connect with fans, clients and cardholders in powerful, authentic ways — and this next chapter expands how we show up across the sport.
In another development, on February 20, 2026, Bloomberg reported that Mexico’s National Antitrust Commission rejected Visa’s proposal to acquire a 51% stake in the payment processor Prosa. The regulator ruled that the deal posed a potential threat to competition because it could grant Visa excessive market control and access to sensitive data on rivals like Mastercard. Visa Inc. (NYSE:V), however, stated that the merger would have modernized Mexico’s digital payment infrastructure.
Founded in 1958, Visa Inc. (NYSE:V) is a leader in digital payments that facilitates electronic funds transfers across 200+ countries and processes over $15 trillion in annual volume. Its headquarters is in California.
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