Financials have taken a turn for the worse recently, and some stocks in the space may be out. The S&P 500 financial sector has advanced more than 16% this year and about 4% in the past month. It also rose 7% in the third quarter, beating the S&P 500’s 0.3% gain. The sector took a boost from the Federal Reserve’s expected rate cut later this month, with many expecting the US economy to avoid a potential recession. If history is any indication, low interest rates should give banks a boost. Wells Fargo noted that banks drop an average of 6% in the week following the first rate cut of a period. However, this segment from below averages 21% pop. Recent financial indicators have coincided with a difficult period for the broader market. The S & P 500 and Nasdaq Composite fell more than 2% in September. Against this background, we used the CNBC Pro Stock Screener tool to find financial stocks that are highly favored by analysts and are expected to do well in the future. The criteria used for the review are: Stocks are members of the S & P 500 financial sector Analysts maintain a consensus buy rating. Average analyst price targets call for KKR to move up the list by at least 10%. Shares have advanced nearly 40% in 2024, and the average price target suggests an upside of about 17% ahead. Redburn Atlantic launched KKR with a buy rating late last month, praising the private equity giant’s efforts to diversify its business. These include its acquisition of Global Atlantic, which was completed earlier this year, as well as the company’s growing list of assets. KKR YTD mountain KKR stock. “We forecast KKR to grow AuM (assets under management) and fee-generating AuM at mid-teens CAGR (compound annual growth rate) over the next half-decade, with broad-based growth reflecting the scale and breadth of KKR’s asset class capability. “, said analyst Nicholas Watts. Shares of the consumer banking giant are up more than 8% in 2024. Analysts polled by LSEG expect a 16% gain for the stock going forward upgraded the stock to buy last week, citing the entry point. WFC YTD stock. “Recent weakness created a better entry point in our view. In the near term, one could argue that there is sufficient risk reduction given the lower projections for both net II and equity (July call) and regulatory risks. They look more valuable than they did a few months ago,” analyst Matt O’Connor said in a note on Sept. 2. Elsewhere, Bank of America also made the list. The stock is up about 15% in 2024, and analysts polled by LSEG expect a rise of about 17%. Deutsche also upgraded BofA last week, saying a pullback from Berkshire Hathaway, which has been selling shares, created a buying opportunity. BAC YTD mountain Bank of America shares.
