2 Financials Stocks on Our Watchlist and 1 We Brush Off Petr Huřťák Fri, October 16, 2026 at 4:59 AM EDT 3 min read APAM +3.21% ^GSPC +0.33% FHI +2.84% SCHW -2.73% 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 1.5% over the past six months. This return lagged the S&P 500's 9.7% climb.
The elite companies can churn out earnings growth under any circumstance, however, and our mission at StockStory is to help you find them. Keeping that in mind, here are two financials stocks boasting durable advantages and one we're steering clear of.
Founded in 1994 with a focus on autonomous investment teams and a "high-value-added" approach, Artisan Partners (NYSE:APAM) is an investment management firm that offers actively managed equity and fixed income strategies to institutional and individual investors.
Why Do We Think APAM Will Underperform?
Sales trends were unexciting over the last five years as its 2.8% annual growth was below the typical financials company
Earnings per share fell by 1.3% annually over the last five years while its revenue grew, showing its incremental sales were much less profitable
Artisan Partners is trading at $32.75 per share, or 8.7x forward P/E. Read our free research report to see why you should think twice about including APAM in your portfolio, it's free.
With roots dating back to 1955 and a pioneering role in money market funds, Federated Hermes (NYSE:FHI) is an investment management firm that offers a wide range of funds and strategies for institutional and individual investors.
Decent 10.2% annual revenue growth over the last two years beat most of its peers, showing customers find value in its products and services
Share repurchases have increased shareholder returns as its annual earnings per share growth of 21.1% exceeded its revenue gains over the last two years
At $56.04 per share, Federated Hermes trades at 9.6x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it's free.
Founded in 1971 as a disruptive force challenging Wall Street's high fees and limited access, Charles Schwab (NYSE:SCHW) is a wealth management and brokerage firm that provides investment services, banking, and financial advice to individual investors and independent advisors.
Annual revenue growth of 20.2% over the last two years was superb and indicates its market share increased during this cycle
Performance over the past two years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
ROE punches in at 16.2%, illustrating management's expertise in identifying profitable investments
Charles Schwab's stock price of $94.52 implies a valuation ratio of 12.7x forward P/E. Is now the time to initiate a position? Find out in our full research report, it's free.
ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.
Find out which 5 stocks it's flagging this month — FREE. Get Our Top 5 Growth 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 Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.
