In 2025, big tech remained in the driver's seat, both in terms of economic growth and stock market gains. All bets are off whether the key factor behind this, the artificial intelligence (AI) boom, will persist into 2026. However, whether tech takes off again this year, it may be time to start cycling into another promising sector: financials.
Financial stocks held up well during the prior year, in large part thanks to favorable developments such as interest rate cuts from the Federal Reserve. However, in contrast to 2025, the macroeconomic backdrop could improve more rapidly as inflation eases and the Fed possibly speeds up rate cuts.
So, what are some of the financial stocks that stand to win this year? These three stand out: SoFi Technologies (SOFI +2.63%), S&P Global (SPGI +0.71%), and UWM Holdings (UWMC +2.05%).
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1. SoFi could keep gaining as its earnings shoot for the moon
You may find it strange to say that investors should cycle out of tech stocks and into SoFi shares. After all, as a fintech, doesn't SoFi essentially qualify as a technology stock?
NASDAQ: SOFI
Key Data Points
In some ways, yes, but generally speaking, SoFi is more like a traditional financial institution than a technology company. In fact, it's because of SoFi's transformation into a diversified financial services company that makes it a top financial stock to own in 2026. Its share price has nearly doubled in the past year, as SoFi's diversification helped to steady profitability.
This year, further high earnings growth is expected to continue. In 2024, SoFi reported earnings of $0.15 per share. In 2025, sell-side analysts expect earnings of $0.37 per share. And in 2026, earnings could nearly double again, to $0.57 per share. Although richly priced at 46 times forward earnings, future earnings growth forecasts more than make up for this.
2. After a sideways 2025, S&P Global may surge higher in 2026
Over the past year, S&P Global shares have traded in a sideways pattern. However, that may not be the case in 2026. Last year, investors weighed valuation against the company's growth prospects.
Now, however, S&P Global's valuation has contracted, from 30 times forward earnings to just 25 times forward earnings. Furthermore, 2026 could bring better-than-expected growth. In addition to growth related to the company's AI catalysts, there are catalysts at play for the company's bond ratings and stock market index units.
Put it all together, and it's easy to envision a scenario where growth beats expectations. In turn, this leads to share price appreciation based on earnings growth, as well as valuation expansion.
3. 2026 bodes well for UWM Holdings for two reasons
The housing market's slow recovery has weighed on UWM Holdings' price performance. So too has investor uncertainty surrounding the mortgage wholesaler's pending merger with Two Harbors Investment, a mortgage REIT specializing in mortgage servicing.
However, UWM may be in for a comeback starting this year, for two reasons. First, the prospect of lower interest rates bodes well for mortgage demand, possibly leading to a much-awaited earnings recovery.
Second, despite the uncertainty, the pending Two Harbors merger may prove successful. Combining America's largest mortgage wholesaler with one of the largest mortgage servicers is likely to result in big cost and growth synergies.
