In this article, we will list the 5 Best Financial Stocks with Highest Upside Potential. Please visit 10 Best Financial Stocks with Highest Upside Potential if you’d like to see an extended list and how we came up with the list of best financial stocks.
5. Affirm Holdings Inc. (NASDAQ:AFRM)
Affirm Holdings Inc. (NASDAQ:AFRM) is one of the 10 best financial stocks with highest upside potential.
On February 17, Affirm Holdings Inc. (NASDAQ:AFRM) and Lowe’s (LOW) announced their new partnership, which will enable Affirm to provide payment plans for Lowe’s customers on Lowe’s website and Lowe’s mobile app. The companies indicated that Lowe’s will be featured on the Affirm marketplace, expanding their customer base to Affirm’s shopper network.
Affirm’s Chief Revenue Officer, Wayne Pommen, stated that Affirm helps Lowe’s customers confidently manage purchases with clear, transparent payment options and that this partnership will provide customers with the flexibility to invest in their homes on terms that work for them.
Back on February 20, Truist reduced the firm’s price target on Affirm Holdings Inc. (NASDAQ:AFRM) from $85 to $71. The firm maintained its Buy rating on the shares. Truist said that it is raising its estimates following the company’s fourth-quarter outperformance. However, the firm noted that this lower price target reflects declining valuation multiples among peers and growing investor concerns around competition in the buy-now, pay-later space, particularly from Klarna and PayPal.
Affirm Holdings Inc. (NASDAQ:AFRM) provides a versatile payment network that enables consumers to pay for purchases over time. By partnering with merchants ranging from small businesses to large enterprises across diverse retail sectors, the firm provides flexible point-of-sale solutions, merchant commerce tools, and a centralized consumer app to enable seamless financial transactions.
4. Upstart Holdings Inc. (NASDAQ:UPST)
Upstart Holdings Inc. (NASDAQ:UPST) is one of the 10 best financial stocks with highest upside potential.
On March 9, Bank of America Securities reduced the firm’s price target on Upstart Holdings Inc. (NASDAQ:UPST) from $60 to $49. The firm reiterated its Neutral rating on the stock, which offers an upside potential of more than 90% even after the downward revision.
This adjustment in price target is part of a broader recalibration across the consumer finance sector, as the firm adjusts its models to account for a more uncertain macroeconomic backdrop and a general compression in market valuation multiples.
Earlier on February 19, Upstart Holdings Inc. (NASDAQ:UPST) announced it had purchased $100 million of the company’s common stock over the previous four trading days. The company acquired 3,193,294 shares at an average price of $31.31 per share between February 12 and February 18.
The company stated the shares were repurchased through open market transactions under a $400 million share repurchase program, which was previously authorized by the Upstart Board of Directors, with $122 million remaining under the program following these transactions.
Upstart Holdings Inc. (NASDAQ:UPST) is a cloud-based artificial intelligence lending platform that is engaged in approving consumers for credit. The company has a strong emphasis on risk reduction, and partners with banks, credit unions, and other lenders. It offers several products such as unsecured personal loans, auto refinancing, auto secured loans, and home equity lines of credit.
3. Jefferies Financial Group Inc. (NYSE:JEF)
Jefferies Financial Group Inc. (NYSE:JEF) is one of the 10 best financial stocks with highest upside potential.
On March 10, Goldman Sachs decreased the firm’s price target on Jefferies Financial Group Inc. (NYSE:JEF) from $71 to $61. The firm maintained its Buy rating on the stock, which currently yields more than 69% upside despite the revision.
The thesis hinges on a stark divergence in the firm’s first-quarter outlook. While underwriting and trading are poised for robust performance, these gains are expected to be partially offset by a more cautious forecast for advisory revenue. Despite the target reduction, the firm retains a bullish stance, banking on the resilience of Jefferies’ core investment banking franchise to drive long-term value.
Earlier on March 6, Jefferies Financial Group Inc. (NYSE:JEF) responded to a lawsuit filed by Western Alliance Bancorporation (WAL) regarding a loan issued to the Point Bonita fund, which was backed solely by receivables purchased from First Brands Group. The firm said the loan was structured on market terms, was non-recourse, and had been fully assessed by the bank, which also retained the right to audit the underlying receivables.
Jefferies added that the Point Bonita fund acted in good faith but alleged that First Brands and its leadership engaged in well-concealed fraud. The firm said it believes the lawsuit lacks merit and intends to defend it vigorously.
Jefferies Financial Group Inc. (NYSE:JEF) is a global investment banking and capital markets firm. Operating through investment banking, capital markets, and asset management segments, they provide advisory, underwriting, and corporate lending services. They also offer prime brokerage, wealth management, and extensive trading capabilities across diverse debt, equity, and alternative asset classes.
2. Hamilton Lane Inc. (NASDAQ:HLNE)
Hamilton Lane Inc. (NASDAQ:HLNE) is one of the 10 best financial stocks with highest upside potential.
As of the March 13 closing, consensus sentiment for Hamilton Lane Inc. (NASDAQ:HLNE) remained moderately bullish. The stock received coverage from 6 analysts, 4 of whom assigned Buy ratings and 2 gave Hold calls. With no Sell rating, it has a $178.40 projected median 1-year price target. This results in an upside potential of more than 84% at the prevailing level.
On February 20, UBS cut its price target on Hamilton Lane Inc. (NASDAQ:HLNE) from $184 to $150, implying upside potential of more than 59% following the downward revision. The firm also reiterated its Buy rating on the stock.
Back on February 4, Oppenheimer increased the firm’s price target on Hamilton Lane Inc. (NASDAQ:HLNE) to $230 from $220, which leads to a revised upside potential of more than 144%. The firm maintained its Outperform rating on the stock.
This target hike underscores confidence in the company’s robust third-quarter earnings. The firm noted that the shares saw an initial 3% post-earnings surge before a sell-off through the market close. It attributed the sell-off to looming credit risks for alternative asset managers. However, Oppenheimer believes that such concerns do not seem justified.
Hamilton Lane Inc. (NASDAQ:HLNE) functions as a comprehensive investment manager, delivering specialized strategies across private equity, venture capital, and credit. By targeting innovation-heavy sectors and middle-market enterprises, they deploy capital through diverse vehicles like co-investments and fund-of-funds, facilitating both majority and minority positions to drive value in evolving global markets.
1. Blue Owl Capital Inc. (NYSE:OWL)
Blue Owl Capital Inc. (NYSE:OWL) is one of the 10 best financial stocks with highest upside potential.
On March 10, Blackstone Group (BX) and Blue Owl Capital Inc. (NYSE:OWL) announced that they had acquired a minority stake in private equity firm Atlas Holdings. The terms of the deal were not disclosed, and it was executed by the Blackstone GP Stakes and Blue Owl Capital GP Strategic Capital units.
Founded in 2002, Atlas and its affiliates have 30 industrial, manufacturing, and distribution businesses. Blackstone GP Stakes’ CIO, Ward Young, stated that Atlas can transform complex industrial businesses into more resilient, higher-performing enterprises, which is a durable playbook they seek in a partner. The co-founder of Atlas and Managing Partner, Andrew Bursky, also stated that this transaction will further strengthen the ability to attract and retain top talent.
On February 19, Raymond James said a headline published by the Financial Times suggesting that Blue Owl Capital Inc. (NYSE:OWL) had permanently halted redemptions appears to have contributed to the stock’s roughly 9% decline, though it believes the framing is misleading.
The firm noted that redemptions for the OBDC II fund have already been paused since November. Raymond James added that Blue Owl Capital Inc. (NYSE:OWL) plans to make OBDC II investors whole over time, making a reopening of the redemption window unlikely. The firm also pointed out that the fund represents only a small portion of Blue Owl’s roughly $307 billion in AUM and called the stock’s move an overreaction while maintaining a Strong Buy rating on the shares.
Blue Owl Capital Inc. (NYSE:OWL) is an alternative asset manager that offers capital solutions to mid-market companies. With an emphasis on credit, real assets, and GP strategic capital, it provides private financing, direct lending, opportunistic lending, equity financing, and leasing solutions. It is well-reputed for delivering a differentiated route to private markets and secular growth trends.
While we acknowledge the potential of OWL as an investment, 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 OWL and that has 100x upside potential, check out our report about the cheapest AI stock.
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