Financial stocks are a category of publicly traded companies that includes banks, insurance companies, financial service providers, and more. Companies in the financial sector can produce excellent long-term returns, and there are some that look more attractive than others.
Top financial stocks to consider
| Name and ticker | Market cap | Dividend yield | Industry |
|---|---|---|---|
| Berkshire Hathaway (NYSE:BRKA) | $1.0 trillion | 0.00% | Diversified Financial Services |
| JPMorgan Chase (NYSE:JPM) | $825.1 billion | 1.93% | Banks |
| Visa (NYSE:V) | $602.1 billion | 0.80% | Diversified Financial Services |
Data as of Apr 16, 2026. Showing 3 of 3 tickers.
1. Berkshire Hathaway
NYSE: BRKA
Berkshire Hathaway
Today's Change
(-0.40%) $-2849.99
Current Price
$708384.54
Key Data Points
Market Cap
$1.0T
Day's Range
$708384.54 - $713828.56
52wk Range
$685150.00 - $812855.00
Volume
67
Avg Vol
598
Gross Margin
23.63%
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2. JPMorgan Chase
NYSE: JPM
JPMorgan Chase
Today's Change
(0.47%) $1.44
Current Price
$307.37
Key Data Points
Market Cap
$825B
Day's Range
$305.02 - $309.85
52wk Range
$226.34 - $337.25
Volume
197K
Avg Vol
11M
Dividend Yield
1.93%
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NYSE: V
Visa
Today's Change
(-0.07%) $-0.21
Current Price
$315.70
Key Data Points
Market Cap
$602B
Day's Range
$314.55 - $317.94
52wk Range
$293.89 - $375.51
Volume
100K
Avg Vol
7.6M
Gross Margin
78.02%
Dividend Yield
0.80%
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Two important metrics for analyzing certain financial stocks
As mentioned, insurance companies are included in the financial sector. There are a couple of important profitability metrics that apply to the insurance industry but not to other types of financial stocks.
- Combined ratio: To compute this ratio, first add (combine) the amount of money an insurance company pays out in claims to the amount of money the company spends on other business expenses. Divide that amount by the premium income the insurance company collects. If an insurer is a profitable underwriter, the result should be less than 100%.
- Investment margin: Insurers aim to profit from underwriting policies. They can also make money by investing the premiums they collect until they use the money to pay any insurance claims. How profitably an insurer invests -- its investment margin -- is important since investment income is often the primary source of profits for an insurance company. Most insurance companies invest in rather safe fixed-income instruments like Treasury securities and corporate bonds.
How to invest in financial stocks
Once you've identified financial stocks you want to invest in, the process of buying shares is pretty straightforward:
- Open your brokerage app: Log in to your brokerage account where you handle your investments.
- Search for the stock: Enter the ticker or company name into the search bar to bring up the stock's trading page.
- Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this stock.
- Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
- Submit your order: Confirm the details and submit your buy order.
- Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.
Related investing topics
FAQ
Financial stock FAQ
About the Author
Matt Frankel, CFP, is a contributing Motley Fool stock market analyst specializing in the real estate and financial sectors. Prior to The Motley Fool, Matt taught high school and college mathematics. He holds a bachelor’s degree in physics from the University of South Carolina, a master’s degree in mathematics from Nova Southeastern University, and a graduate certificate in financial planning from Florida State University. He won a SABEW award for coverage of the 2017 Tax Cuts and Jobs Act. He is also regularly interviewed by Cheddar, Globe St, The National Desk, and other TV networks and publications for his real estate, financial, stock market, and investing expertise.
Bank of America is an advertising partner of Motley Fool Money. JPMorgan Chase is an advertising partner of Motley Fool Money. American Express is an advertising partner of Motley Fool Money. Matt Frankel, CFP has positions in American Express, Bank of America, Berkshire Hathaway, Block, and PayPal and has the following options: long January 2027 $75 calls on PayPal, long January 2027 $95 calls on PayPal, short January 2027 $135 calls on PayPal, and short January 2027 $85 calls on PayPal. The Motley Fool has positions in and recommends Berkshire Hathaway, Block, Goldman Sachs Group, JPMorgan Chase, Mastercard, PayPal, S&P Global, and Visa. The Motley Fool recommends CME Group and recommends the following options: long January 2027 $42.50 calls on PayPal and short March 2026 $65 calls on PayPal. The Motley Fool has a disclosure policy.
