3 Financial Stocks That Can Keep Growing Profits
It has been a volatile week in the markets, particularly for bank stocks, following the collapse of Silicon Valley Bank (a subsidiary of SVB Financial) and Signature Bank. For many investors, it brings into focus the importance of finding stable companies with a history of long-term outperformance in any market.
The past five years have certainly been extremely volatile, and when you look back, only a relative few financial stocks have been able to maintain at least 15% annual earnings-per-share (EPS) growth over that period. Three of the largest and most stable are Visa (NYSE: V), Mastercard (NYSE: MA), and MSCI (NYSE: MSCI). Can these top performers continue to increase profits over the next five years?
The volatility started in 2018, when the S&P 500 dropped 6.2% for the year amid the China trade war, among other factors. In 2020, the pandemic hit and caused stocks to plunge. The short bear market was followed by a two-year bull run led by technology stocks, with prices soaring to the highest level since the run-up to the dot-com crash of the early 2000s. Last year, valuations contracted and we had the worst retreat since the Great Recession, with the S&P 500 falling 19% and the Nasdaq Composite losing one-third of its value.
Source Fool.com
