2 Bank Growth Stocks to Buy
Banking is often seen as a cyclical sector, performing better when interest rates are rising and worse when they fall. Banks also tend to struggle during recessions because they are heavily linked to the economy. That said, banks can also be incredibly profitable, which is why growth stocks in the sector can really fly. Here are two bank stocks that should continue to outperform the industry.
If you follow the banking sector, this one should come as no surprise. SVB Financial (NASDAQ: SIVB), the parent company of the $124-billion-asset Silicon Valley Bank, has been an absolute beast following the Great Recession in 2008. The bank caters to the start-up, venture capital, and private equity communities with unique lending products, start-up banking, and a growing investment bank that is capitalizing on initial public offerings in the healthcare and life sciences sectors.
The bank saw its stock price appreciate from roughly $45 in January of 2010 to more than $251 at the end of 2019, representing a price appreciation of 546%. The pandemic only accelerated the popularity of Silicon Valley Bank's stock, which now trades at roughly $580 per share.
Source Fool.com
