Financial firms serve as the backbone of the economy, providing essential services from lending and investment management to risk management and payment processing. But worries about economic uncertainty and potential market volatility have kept sentiment in check, and over the past six months, the industry’s 3.8% return has trailed the S&P 500 by 2.4 percentage points.
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 three financials stocks we think can generate sustainable market-beating returns.
Ares (ARES)
Market Cap: $28.81 billion
With roots in the leveraged finance group of Apollo Management, Ares Management (NYSE: ARES) is an alternative investment firm that manages private equity, credit, real estate, and infrastructure assets for institutional and high-net-worth clients.
Why Is ARES a Top Pick?
- Impressive 23.2% annual revenue growth over the last five years indicates it’s winning market share this cycle
- Earnings per share grew by 21.3% annually over the last five years, comfortably beating the peer group average
Ares is trading at $127.75 per share, or 20.6x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.
Moody's (MCO)
Market Cap: $84.16 billion
Founded in 1900 during America's railroad boom when investors needed reliable information on bond risks, Moody's (NYSE: MCO) provides credit ratings, risk assessment tools, and analytical solutions that help organizations evaluate financial risks and make informed investment decisions.
What Makes MCO Stand Out?
- Annual revenue growth of 11.6% over the last two years beat the sector average and underscores the unique value of its offerings
- Share repurchases have increased shareholder returns as its annual earnings per share growth of 21.3% exceeded its revenue gains over the last two years
- Stellar return on equity showcases management’s ability to surface highly profitable business ventures
At $484.09 per share, Moody's trades at 26.5x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
Morgan Stanley (MS)
Market Cap: $337.3 billion
Founded in 1924 during the post-WWI economic boom by former JP Morgan partners, Morgan Stanley (NYSE: MS) is a global financial services firm that provides investment banking, wealth management, and investment management services to corporations, governments, institutions, and individuals.
Why Does MS Catch Our Eye?
- Impressive 17.7% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Share repurchases over the last two years enabled its annual earnings per share growth of 39.7% to outpace its revenue gains
- Market-beating return on equity illustrates that management has a knack for investing in profitable ventures
Morgan Stanley’s stock price of $214.25 implies a valuation ratio of 16.4x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.
Our AI system flagged Palantir before it ran 1,662% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. Each week it produces 6 new names that pass the same tests. Get Our Top 6 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.
