Should Investors Be Buying These Trending Financial Stocks Right Now?
Financial stocks, much like most sectors in the stock market, have shown some volatility over the past year. This is understandable with inflation and talks of a possible recession making the headlines. Just this morning, the Bureau of Labor Statistics reported that the consumer price index for May rose 8.6% from a year ago, beating estimates of 8.3%. Nevertheless, with unemployment near pre-pandemic lows, some believe that fears of a recession may be overblown. Regardless, as banks and financial institutions play a vital role in the economy, it would not be surprising if investors continue to find a place for financial stocks in their portfolios.
Companies in the sector are also constantly making progress to serve customers better. For instance, PayPal (NASDAQ: PYPL) announced on Tuesday that users can now move cryptocurrencies off its platform. Now, this means that PayPal users will be able to transfer cryptocurrencies between their PayPal accounts and other wallets and exchanges.
In addition, Visa (NYSE: V) recently announced a partnership with Fundbox to strengthen its platform with the power of digital payments. Some of the notable additions would include Buy Now, Pay Later solutions, and a push-to-card transfer option for instant fund disbursement. In brief, this could help small businesses to thrive as the financial space continues to evolve. With that being said, here are some of the top financial stocks in the stock market today worth noting.
Financial Stocks To Watch In June 2022
- Mastercard Inc (NYSE: MA)
- Block Inc (NYSE: SQ)
- Royal Bank of Canada (NYSE: RY)
- HSBC Holdings plc (NYSE: HSBC)
Mastercard
Mastercard is a technology company that plays an important role in the financial sector today. Essentially, the company connects consumers, financial institutions, merchants, governments, and businesses across the world. Hence, enabling them access to electronic forms of payment. Yesterday, Gap Inc (NYSE: GPS) launched a new credit card in partnership with Mastercard and Barclays (NYSE: BCS) U.S. Consumer Bank. Moving forward, Barclays will be the official issuer of Gap’s co-branded credit card program in the U.S. and Puerto Rico through the Mastercard global payment network.
On top of that, the company also unveiled the “Experience Center” at its Global Intelligence and Cyber Center of Excellence late in May. Featured in Vancouver, many local, national, and international tech communities were invited to collaborate on cyber security innovation. Besides that, the center also revealed emerging Mastercard products and solutions that will likely play a pivotal role in securing digital payments on a global scale. The company believes that the center will continue to attract top talents across Canada and make Canada one of the leading powerhouses in cybersecurity innovation. Given these exciting developments, would MA stock be a top financial stock to watch today?
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Block
Following that, let us look at a company that could potentially revolutionize the financial space, Block. Formerly known as Square, the company creates tools that enable its customers to access the economy. Its segments include Square and Cash App. Its Square segment is responsible for managing payment services, software solutions, and financial services products offered to sellers. Meanwhile, Cash App is a financial tool that offers peer-to-peer payments, stock, and even bitcoin investments. On Wednesday, the company’s Afterpay announced a new partnership with HBX, Hypebeast’s global e-commerce platform, and retail destination. The partnership aims to make luxury and streetwear brands more accessible for shoppers to purchase online in four installments.
Furthermore, Square will be working with Apple (NASDAQ: AAPL) to enable Tap to Pay on iPhone. This is Apple’s contactless payment acceptance capability, within the Square Point of Sale app. With this, sellers can seamlessly and securely accept in-person contactless payments with only an iPhone that has Square’s industry-leading POS app. As the fintech space continues to grow, it seems that Block is constantly putting in work to be at the forefront of this evolution. So, could SQ stock be a bargain at its current valuation?
Royal Bank of Canada
Royal Bank of Canada is a diversified financial services company. In detail, the company provides personal and commercial banking, wealth management services, insurance, corporate and investment banking, and transaction processing services. Aside from that, it also serves personal, business, public sector, and institutional clients in Canada, and the United States. It is noteworthy that the bank was recently recognized with the J.D. Power Canada award for “Best in Customer Satisfaction” for its mobile banking app. While this may seem insignificant, such an accomplishment could go a long way in the eyes of an average consumer.
Last month, the company announced an upgrade to further protect its clients’ most personal information online. Its clients can now use their personal PIN with their client card or biometrics to securely authenticate themselves on their RBC Mobile App on their phones. Some may question, could this be redundant? Well, this additional layer of protection is necessary as many Canadians have felt the impact of increasing fraud attempts over the past few years. All things considered, should RY stock deserve more attention among investors today?
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HSBC
Last but not least, we have another leading company in the banking and financial services space, HSBC. Being one of the world’s largest banks, its global businesses serve around 40 million customers worldwide through a network that covers 64 countries and territories. Its customers range from individual savers and investors to some of the world’s largest companies. Despite the decline of most financial stocks over the past year, HSBC stock has shown signs of resilience. Therefore, some may be keeping an eye on the company’s developments in these trying times.
Earlier in June, HSBC announced plans of investing more than $448 million in its Chinese operations. The announcement came after its largest investor, Chinese insurance firm Ping An, called on the bank to find ways to boost returns. This includes a proposal to separate its Asia operations. Now, HSBC does expect some market volatility to continue in the short term. However, the company’s Chief Executive, Noel Quinn believes that China is an “economy that has demonstrated its resilience and that still presents long-term growth potential and attractive opportunities to foreign firms and investors.” With that in mind, would you consider adding HSBC stock to your watchlist?
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