Financial providers use their expertise in capital allocation and risk assessment to help facilitate economic growth while offering consumers and businesses essential financial services. But uncertainty about fiscal and monetary policy has tempered enthusiasm, limiting the industry’s gains to 6.6% over the past six months. This return lagged the S&P 500’s 14.3% climb.
Only some companies are subject to these dynamics, however, and a handful of high-quality businesses can deliver earnings growth in any environment. Taking that into account, here are two financials stocks we think can generate sustainable market-beating returns and one best left ignored.
One Financials Stock to Sell:
Ridgepost Capital (RPC)
Market Cap: $879.7 million
Operating as a bridge between institutional investors and hard-to-access private market opportunities, Ridgepost Capital (NYSE:RPC) is an alternative asset management firm that provides access to private equity, venture capital, impact investing, and private credit opportunities in the middle and lower middle markets.
Why Is RPC Not Exciting?
- Performance over the past two years shows its incremental sales were less profitable, as its 5.7% annual earnings per share growth trailed its revenue gains
Ridgepost Capital’s stock price of $7.99 implies a valuation ratio of 7.4x forward P/E. Check out our free in-depth research report to learn more about why RPC doesn’t pass our bar.
Two Financials Stocks to Buy:
Corpay (CPAY)
Market Cap: $26.4 billion
Formerly known as FLEETCOR until its 2024 rebrand, Corpay (NYSE:CPAY) provides specialized payment solutions for businesses to manage vehicle expenses, corporate payments, and lodging costs with enhanced control and reporting capabilities.
Why Is CPAY a Top Pick?
- Annual revenue growth of 15.2% over the past five years was outstanding, reflecting market share gains this cycle
- Share buybacks propelled its annual earnings per share growth to 18.1%, which outperformed its revenue gains over the last two years
- ROE punches in at 31.9%, illustrating management’s expertise in identifying profitable investments
At $402.01 per share, Corpay trades at 13.7x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
Nubank (NU)
Market Cap: $74.3 billion
With well over one hundred million customers across Brazil, Mexico, and Colombia through its viral member-get-member referral program, Nubank (NYSE:NU) is a digital banking platform that offers financial services including spending, saving, investing, borrowing, and protection products to millions of customers across Latin America.
Why Are We Bullish on NU?
- Annual revenue growth of 41.1% over the last two years was superb and indicates its market share increased during this cycle
- Additional sales over the last two years increased its profitability as the 48.7% annual growth in its earnings per share outpaced its revenue
- ROE punches in at 15.9%, illustrating management’s expertise in identifying profitable investments
Nubank is trading at $15.37 per share, or 15.8x forward P/E. Is now the right time to buy? See for yourself 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 (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.