As part of my 2025 Stock Market Outlook I said that financials will be outperformers in the year ahead as the Fed lowers rates. That notion became extra solidified after Trump’s election because of all the steps he is taking to greatly reduce regulation that constrains many businesses...none more so than the financial industry.
These are 2 very good reasons to buy BGC Group (BGC) for the year ahead. And here are some more good reasons…
Not only does BGC enjoy a Zen Rating of A (Strong Buy) it actually has a percentile grade of 97.83. This means it’s basically in the top 2% of all stocks across the 115 factor review.
In the case of BGC there is no weakness to be found in the 7 component grades. Meaning that BGC scores solidly in all areas from Growth to Value to Momentum to Sentiment to Financials to AI etc. (See full Zen Ratings analysis for BGC)
Financials is where BGC scores the highest in the top 10% of all stocks. This means it is a well run company flexing impressive operational strength that usually points to more earnings growth on the horizon.
Sentiment is also a strength of BGC where it scores in the top 11% of the 4,600 stocks under review. This means the smart money crowd likes what they see with BGC. This makes sense after 10 straight quarter of earnings beats with future earnings potential looking very good.
On the value front I want to point out that shares rocketed to $11.79 in November along with gains for their financial peers. But then their CEO, Howard Lutnick, was announced as Trump’s Secretary of Commerce selection, which sent shares reeling because it is believed his management of the firm is a big reason for their long term success.
The recent 24% reduction in shares seems a bit over the top for a company that is as well dialed in as this one is. As the smoke clears, I think more people will pick up on the fundamental excellence found in the Zen Ratings and perhaps realize that if Lutnick is as good of a CEO as they believe...then he no doubt would build the company to run well without him.
Sure this comes with some modest risk...but at the current stage of this bull market there are few stocks with this kind of attractive upside potential trading at a discount. And when they appear, you need to grab’em fast before the opportunity evaporates.
With that in mind, I think the upside reward of BGC is far superior to the modest downside risk at this stage. I would not be surprised to see shares topping $20 within the next couple years making the purchase now just above $9 very appealing.
What To Do Next?
BGC Group (BGC) is just one of the stellar stocks found in my Zen Investor portfolio.
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Wishing you a world of investment success!
Steve Reitmeister…but everyone calls me Reity (pronounced “Righty”)
Editor of the Zen Investor
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