© Reuters. 3 Financial Stocks to Pick Up as Rates Continues to Rise
The financial sector has made a strong recovery this year with the rebound in economic activities and higher-than-usual capital market activities. And since the Fed is expected to raise interest rates in the near term, financial stocks should benefit further soon. Hence, we think this might be the right time to scoop up fundamentally sound financial stocks of Capital One Financial (COF), Flagstar Bancorp (NYSE:), and Capital Bancorp (NASDAQ:). So, let’s discuss these names.The finance and banking sector was hard hit last year due to the COVID-19 pandemic. The sector has rebounded strongly this year, with the economic recovery driving a rise in banking transactions and higher-than-usual capital market activities. The sector has grown to account for one-third of Fortune’s latest 100 Fastest-Growing Companies List, outpacing the technology sector.
The Fed’s signal that it will raise benchmark interest rates as soon as 2022 should further drive the financial sector’s growth. With the consumer price index rising 4% year-over-year, the odds of an interest rate hike are good.
Investors’ interest in the finance sector is evidenced by the Financial Select Sector SPDR Fund ETF’s (XLF) 37.1% year-to-date gains, versus the broader SPDR S&P 500 ETF Trust’s (SPY) 22.6% returns. Hence, we think it could be wise to bet on financial stocks possessing solid fundamentals—Capital One Financial Corporation (NYSE:), Flagstar Bancorp, Inc. (FBC), and Capital Bancorp, Inc. (CBNK).
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
© Reuters. 3 Financial Stocks to Pick Up as Rates Continues to Rise The financial sector has made a strong recovery this year with the rebound in economic activities and higher-than-usual capital market activities. And since the Fed is expected to raise interest rates in the near term, financial stocks should benefit further soon. Hence, we think this might be the right time to scoop up fundamentally sound financial stocks of Capital One Financial (COF), Flagstar Bancorp (NYSE:), and Capital Bancorp (NASDAQ:). So, let’s discuss these names.The finance and banking sector was hard hit last year due to the COVID-19 pandemic. The sector has rebounded strongly this year, with the economic recovery driving a rise in banking transactions and higher-than-usual capital market activities. The sector has grown to account for one-third of Fortune’s latest 100 Fastest-Growing Companies List, outpacing the technology sector.The Fed’s signal that it will raise benchmark interest rates as soon as 2022 should further drive the financial sector’s growth. With the consumer price index rising 4% year-over-year, the odds of an interest rate hike are good.Investors’ interest in the finance sector is evidenced by the Financial Select Sector SPDR Fund ETF’s (XLF) 37.1% year-to-date gains, versus the broader SPDR S&P 500 ETF Trust’s (SPY) 22.6% returns. Hence, we think it could be wise to bet on financial stocks possessing solid fundamentals—Capital One Financial Corporation (NYSE:), Flagstar Bancorp, Inc. (FBC), and Capital Bancorp, Inc. (CBNK).Continue reading on StockNewsDisclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.