1 Financials Stock Worth Your Attention and 2 We Brush Off

Financial institutions play a critical role, offering everything from consumer banking to wealth management and specialized financial solutions. But uncertainty about fiscal and monetary policy has tempered enthusiasm, and over the past six months, the industry has pulled back by 13.2%. This performance was particularly disheartening since the S&P 500 stood firm.

Despite the lackluster result, a few diamonds in the rough can produce earnings growth no matter what, and we started StockStory to help you find them. Keeping that in mind, here is one resilient financials stock at the top of our wish list and two that may face trouble.

Two Financials Stocks to Sell:

Stifel (SF)

Market Cap: $10.88 billion

Tracing its roots back to 1890 when the firm was established in St. Louis, Stifel Financial (NYSE:SF) is a financial services firm that provides wealth management, investment banking, and institutional brokerage services to individuals, corporations, and institutions.

Why Are We Hesitant About SF?

1. Earnings per share lagged its peers over the last five years as they only grew by 8.2% annually
2. Muted 6.8% annual book value per share growth over the last two years shows its capital generation lagged behind its financials peers

At $72.62 per share, Stifel trades at 10.8x forward P/E. Dive into our free research report to see why there are better opportunities than SF.

Western Union (WU)

Market Cap: $2.88 billion

With a history dating back to 1851 when it began as a telegraph company, Western Union (NYSE:WU) is a global money transfer service that enables consumers and businesses to send funds across borders and currencies, typically within minutes.

Why Do We Think WU Will Underperform?

1. Annual sales declines of 2.9% for the past five years show its products and services struggled to connect with the market during this cycle
2. Earnings per share have contracted by 1.3% annually over the last five years, a headwind for returns as stock prices often echo long-term EPS performance

Western Union’s stock price of $9.20 implies a valuation ratio of 5x forward P/E. If you’re considering WU for your portfolio, see our FREE research report to learn more.

One Financials Stock to Buy:

Sezzle (SEZL)

Market Cap: $2.24 billion

Founded in 2016 as an alternative to traditional credit cards for younger shoppers, Sezzle (NASDAQ:SEZL) provides a payment platform that allows consumers to split purchases into four interest-free installments over six weeks at participating retailers.

Why Will SEZL Beat the Market?

1. Market share has increased this cycle as its 68.1% annual revenue growth over the last two years was exceptional
2. Additional sales over the last two years increased its profitability as the 323% annual growth in its earnings per share outpaced its revenue

Sezzle is trading at $66.33 per share, or 14x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.

Stocks We Like Even More

WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don't just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.

But our AI platform says the party isn't over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE.

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.