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.
Best financial stocks for 2026
These are some mature, easy-to-understand financial sector businesses that are smart choices for beginner investors:
| Name and ticker | Market cap | Dividend yield | Industry |
|---|---|---|---|
| Berkshire Hathaway (NYSE:BRK.A) | $1.0 trillion | 0.00% | Diversified Financial Services |
| JPMorgan Chase (NYSE:JPM) | $838.8 billion | 1.88% | Banks |
| Visa (NYSE:V) | $638.4 billion | 0.73% | Diversified Financial Services |
Data as of Feb 3, 2026. Showing 3 of 3 tickers.
1. Berkshire Hathaway
NYSE: BRK.A
Berkshire Hathaway
Today's Change
(1.47%) $10724.86
Current Price
$740149.86
Key Data Points
Market Cap
$1.0T
Day's Range
$723042.89 - $743515.00
52wk Range
$685150.00 - $812855.00
Volume
321
Avg Vol
775
Gross Margin
24.85%
Loading paragraph...
2. JPMorgan Chase
NYSE: JPM
JPMorgan Chase
Today's Change
(2.26%) $6.96
Current Price
$315.10
Key Data Points
Market Cap
$839B
Day's Range
$308.14 - $316.20
52wk Range
$202.16 - $337.25
Volume
565K
Avg Vol
9.9M
Dividend Yield
1.88%
JPMorgan Chase (JPM +2.26%) is the largest U.S. bank by assets and has an excellent track record across various economic environments. It's tough to make a case against JPMorgan Chase as an investment if you want bank stock exposure in your portfolio. The bank consistently posts some of the highest profitability metrics in the industry and has vast operations in both consumer and investment banking.
3. Visa
NYSE: V
Visa
Today's Change
(-1.40%) $-4.67
Current Price
$329.17
Key Data Points
Market Cap
$638B
Day's Range
$329.00 - $335.77
52wk Range
$299.00 - $375.51
Volume
395K
Avg Vol
7.1M
Gross Margin
78.02%
Dividend Yield
0.73%
Loading paragraph...
Two important metrics for analyzing insurance 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 amount the insurance company collects as premium income. 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.
Related investing topics
FAQ
Financial stock FAQ
About the Author
Matt Frankel, CFP, is a contributing Motley Fool stock market analyst and personal finance expert covering financial stocks, REITs, SPACs, and personal finance. 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, The National Desk, and other TV networks and publications for his 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.
