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2 Financials Stocks Worth Your Attention and 1 We Turn Down

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2 Financials Stocks Worth Your Attention and 1 We Turn Down Anthony Lee Mon, October 12, 2026 at 4:23 AM EDT 3 min read NAVI -1.73% ^GSPC +0.59% SLM -0.66% HLNE +0.01% AXP +0.33% Explore stocks on Coinbase Trading disclosure Trading disclosure The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.

Financial firms serve as the backbone of the economy, providing essential services from lending and investment management to risk management and payment processing. But uncertainty about fiscal and monetary policy has tempered enthusiasm, limiting the industry's gains to 5.1% over the past six months. This return lagged the S&P 500's 12.8% climb.

The elite companies can churn out earnings growth under any circumstance, however, and our mission at StockStory is to help you find them. On that note, here are two financials stocks we think can generate sustainable market-beating returns and one we would avoid.

Spun off from Sallie Mae in 2014 to handle the company's loan servicing and collection operations, Navient (NASDAQ:NAVI) provides education loan servicing and business processing solutions that help manage federal student loans, private education loans, and government services.

Sales tumbled by 21.6% annually over the last five years, showing market trends are working against it during this cycle

Earnings per share have dipped by 15.7% annually over the past five years, which is concerning because stock prices follow EPS over the long term

At $9.10 per share, Navient trades at 11.9x forward P/E. If you're considering NAVI for your portfolio, see our FREE research report to learn more.

With over $100 billion in assets under management and supervision, Hamilton Lane (NASDAQ:HLNE) is an investment management firm that specializes in private markets, offering advisory services and fund solutions to institutional and private wealth investors.

Annual revenue growth of 19.6% over the last five years was superb and indicates its market share increased during this cycle

Performance over the past two years shows its incremental sales were more profitable, as its annual earnings per share growth of 20.5% outpaced its revenue gains

Hamilton Lane is trading at $85.75 per share, or 12.3x forward P/E. Is now the time to initiate a position? Find out in our full research report, it's free.

Recognizable by its iconic green logo and the slogan "Don't leave home without it," American Express (NYSE:AXP) is a global payments company that issues credit and charge cards, processes merchant transactions, and offers travel and lifestyle benefits to consumers and businesses.

Annual revenue growth of 13.2% over the last five years beat the sector average and underscores the unique value of its offerings

Earnings growth was above the peer group average over the last five years as its EPS compounded at 13.9% annually

Industry-leading 33% return on equity demonstrates management's skill in finding high-return investments

American Express's stock price of $308.43 implies a valuation ratio of 16.5x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it's free.

ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren't just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time.

Find out which stocks our AI platform is flagging this week. See this week's Strong Momentum stocks — FREE. Get Our Strong Momentum 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-micro-cap company Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.

Read original at Yahoo Finance News

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