Sectors & IndustriesFinancial Services

Best Financial Stocks to Buy Now (2025)

Top financial stocks in 2025 ranked by overall Due Diligence Score. See the best financial stocks to buy now, according to analyst forecasts for the financial services sector.

According to Zen Ratings, our proprietary rating system that evaluates 115 factors proven to drive growth in stocks and assigns each stock in our system an overall letter grade as well as 7 individual Component Grades for Value, Growth, Momentum, Sentiment, Safety, Financials, and proprietary AI algorithms, the 3 best financial service stocks to buy right now are:

Finvolution Group (NYSE:FINV) is the #1 top financial stock out of 725 with a Zen Rating of A. Stocks with a rating of A have had an average return of +32.52% per year. Learn more.

The Component Grade breakdown for Finvolution Group (NYSE:FINV) is: Value: B, Growth: C, Momentum: A, Sentiment: B, Safety: A, Financials: B, and AI: A.

Finvolution Group (NYSE:FINV) has a Due Diligence Score of 27, which is -7 points lower than the financial sector average of 34. Although this number is below the industry average, our proven quant model rates FINV as a "A".It passed 10 out of 38 due diligence checks and has average fundamentals. Finvolution Group has seen its stock return 85.11% over the past year, overperforming other financial stocks by 68 percentage points.

Finvolution Group has an average 1 year price target of $11.55, an upside of 32.76% from Finvolution Group's current stock price of $8.70.

Finvolution Group stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 2 analysts covering Finvolution Group, 100% have issued a Strong Buy rating, 0% have issued a Buy, 0% have issued a Hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Bitcoin Depot (NASDAQ:BTM) is the #2 top financial stock out of 725 with a Zen Rating of A. Stocks with a rating of A have had an average return of +32.52% per year. Learn more.

The Component Grade breakdown for Bitcoin Depot (NASDAQ:BTM) is: Value: C, Growth: A, Momentum: B, Sentiment: B, Safety: D, Financials: A, and AI: C.

Bitcoin Depot (NASDAQ:BTM) has a Due Diligence Score of 13, which is -21 points lower than the financial sector average of 34. Although this number is below the industry average, our proven quant model rates BTM as a "A".It passed 4 out of 33 due diligence checks and has weak fundamentals. Bitcoin Depot has seen its stock return 223.96% over the past year, overperforming other financial stocks by 207 percentage points.

Bitcoin Depot has an average 1 year price target of $4.75, a downside of -23.63% from Bitcoin Depot's current stock price of $6.22.

Bitcoin Depot stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 2 analysts covering Bitcoin Depot, 50% have issued a Strong Buy rating, 50% have issued a Buy, 0% have issued a Hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Federated Hermes (NYSE:FHI) is the #3 top financial stock out of 725 with a Zen Rating of A. Stocks with a rating of A have had an average return of +32.52% per year. Learn more.

The Component Grade breakdown for Federated Hermes (NYSE:FHI) is: Value: C, Growth: B, Momentum: C, Sentiment: B, Safety: C, Financials: A, and AI: B.

Federated Hermes (NYSE:FHI) has a Due Diligence Score of 48, which is 14 points higher than the financial sector average of 34. It passed 18 out of 38 due diligence checks and has strong fundamentals. Federated Hermes has seen its stock return 31.66% over the past year, overperforming other financial stocks by 15 percentage points.

Federated Hermes has an average 1 year price target of $41.60, a downside of -1.26% from Federated Hermes's current stock price of $42.13.

Federated Hermes stock has a consensus Hold recommendation according to Wall Street analysts. Of the 5 analysts covering Federated Hermes, 0% have issued a Strong Buy rating, 20% have issued a Buy, 60% have issued a Hold, while 0% have issued a Sell rating, and 20% have issued a Strong Sell.

Out of 491 financial stocks that have issued dividends in the past year, the 3 financial stocks with the highest dividend yields are:

Phenixfin (NASDAQ:PFX) has an annual dividend yield of N/A, which is N/A percentage points lower than the financial sector average of 3.4%. Phenixfin's dividend payout is not stable, having dropped more than 10% six times in the last 10 years. Phenixfin's dividend has not shown consistent growth over the last 10 years.

Phenixfin's dividend payout ratio of 53.8% indicates that its dividend yield is sustainable for the long-term.

First Foundation (NYSE:FFWM) has an annual dividend yield of N/A, which is N/A percentage points lower than the financial sector average of 3.4%. First Foundation's dividend payout is not stable, having dropped more than 10% two times in the last 10 years. First Foundation's dividend has not shown consistent growth over the last 10 years.

First Foundation's dividend payout ratio of 0% indicates that its dividend yield might not be sustainable for the long-term.

Ubs Group Ag (NYSE:UBS) has an annual dividend yield of N/A, which is N/A percentage points lower than the financial sector average of 3.4%. Ubs Group Ag's dividend payout is not stable, having dropped more than 10% two times in the last 10 years. Ubs Group Ag's dividend has not shown consistent growth over the last 10 years.

Ubs Group Ag's dividend payout ratio of 19.8% indicates that its dividend yield is sustainable for the long-term.

Financial stocks were down -1.74% in the last day, and down -2.23% over the last week. Applied Digital was the among the top losers in the financial services sector, dropping -10.63% yesterday.

Shares of crypto-linked stocks are trading higher amid a rise in the price of Bitcoin. The commodity, on Friday, fell due to Israel's strikes on Iran and may be seeing new strength this session after reports alleged that Iran wants to de-escalate hostilities with Israel.

Based on the Valuation rating, one of the 7 components of a stocks overall Zen Ratings grade, which evaluates factors including estimated earnings yield, earnings before interest and taxes/enterprise value, cash flow yield, free cash flow to price, and price-to-earnings growth (PEG ratio), the 3 most undervalued financial stocks right now are:

Brighthouse Financial (NASDAQ:BHF) is the most undervalued financial stock based on its Valuation Rating of A. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Brighthouse Financial has a valuation score of 71, which is 32 points higher than the financial sector average of 39. It passed 5 out of 7 valuation due diligence checks.

Brighthouse Financial's stock has gained 38.28% in the past year. It has overperformed other stocks in the financial sector by 21 percentage points.

Newtekone (NASDAQ:NEWT) is the second most undervalued financial stock based on its Valuation Rating of A. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Newtekone has a valuation score of 71, which is 32 points higher than the financial sector average of 39. It passed 5 out of 7 valuation due diligence checks.

Newtekone's stock has dropped -19.55% in the past year. It has underperformed other stocks in the financial sector by -37 percentage points.

Western Union Co (NYSE:WU) is the third most undervalued financial stock based on its Valuation Rating of A. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Western Union Co has a valuation score of 43, which is 4 points higher than the financial sector average of 39. It passed 3 out of 7 valuation due diligence checks.

Western Union Co's stock has dropped -30.74% in the past year. It has underperformed other stocks in the financial sector by -48 percentage points.

38.97% of financial stocks rated by analysts are a buy right now. On average, analysts expect financial stocks to rise by 14.21% over the next year.

3.37% of financial stocks have a Zen Rating of A (Strong Buy), 8.19% of financial stocks are rated B (Buy), 66.93% are rated C (Hold), 17.82% are rated D (Sell), and 3.69% are rated F (Strong Sell).