Financial stock news has been showing signs of life after a rather disappointing 2010. Take Bank of America (NYSE: BAC), up +25% in the last month, or Citigroup (NYSE: C) which is up almost +12%, compared with gains of about +4% for the broader market. This has caused many investors to view financials as some of the best stocks for 2011.
But the big bailed out banks aren’t the only ones on the rise. A number of small, agile bank stocks and financial services companies are heating up right now and have seen some very impressive gains in just a few days’ time. If this trend continues, these picks could soar in 2011 as financials hit their stride.
Related Article: 6 Reasons to Buy Bank of America Stock
Here are four top financial penny stocks for you to consider buying this week:
China HGS Real Estate Inc. (HGSH)
China HGS Real Estate Inc. (NASDAQ: HGSH) is a bit of an oddball. It’s a real estate development company that deals primarily in the construction and sale of residential apartments, car parks and commercial properties in Asia. While some may think China is falling out of favor, HGSH has started 2011 off on the right foot — gaining +14% since the first of the year. HGSH is an affordable stock, as it is currently priced at just $3.35. With a 52-week range of $2.00 to $5.00 it is clearly a long ways away from the top of its recent run, so consider this financial stock before it gets pricier.
MPG Office Trust Inc. (MPG)
MPG Office Trust Inc. (NYSE: MPG) is a full service real estate company in California that specializes in in-house expertise with resources in property management, marketing, leasing, acquisitions, development and financing. Over the past 12 months, MPG has been very successful, with its stock doubling compared to gains of about +12% and +11% for the S&P 500 and the Dow Jones, respectively. More recently, this penny stock is up over +50% since mid-November. Based on this track record, MPG is a penny stock worth buying at $3.10.
Ladenburg Thalmann Financial Services (LTS)
Based in Miami, Ladenburg Thalmann Financial Services (AMEX: LTS) is an investment banking, equity research, and asset management firm. The investment minds at this company appear to know what to buy and sell — over the past 52-weeks, LTS has jumped about +90%, compared to much smaller gains by the broader markets. Since September, this financial stock is up +52.5% as well. Importantly, LTS posted a quarterly revenue growth of +19.7%, year-over-year, in its last income statement. Trading at $1.22, this penny stock is a bargain buy.
RAIT Financial Trust (RAS)
Self-managed and self-advised real estate investment trust RAIT Financial Trust (NYSE: RAS)offers debt financing options to the commercial real estate industry, as well as fixed income trading and advisory services. Since this time last year, RAS has seen its stock price double. Additionally, over the past three months, this penny stock is up nearly +50% so most of these gains have come recently. RAS outperformed earnings estimates by over +75% last quarter, and with a quarterly revenue growth north of +11% in its last income statement, RAS is a penny stock to buy.
As of this writing, Louis Navellier did not own a position in any of the stocks named here.