4 Best-Bet Stocks to Buy In the Financial Sector

Favorable Zacks rankings and rate hikes will send these stocks higher

Well, it’s official: the Fed is going to raise rates. Most industries in the finance space, including banking, insurance and brokerage, will benefit from rising rates.

Moreover, the U.S. economy is progressing well as indicated by the improving real GDP numbers, declining unemployment rate, rising consumer spending and stabilizing housing market.

These have further boosted investors’ confidence in the Finance stocks as the sector’s performance is largely dependent on the nation’s economic health.

Here, we bring a handful of stocks that are expected to give good returns.

How to Choose Winning Stocks

You can find companies with robust fundamentals and future prospects. Another key factor that one should consider is the comprehensive performance of the industry to which a company belongs.

In fact, studies have divulged that an average stock in a strong industry is likely to perform better than an exceptional stock within an industry that is out of favor with investors. Therefore, the combination of top performing industries and stocks, which are expected to shine, will surely enhance your investment portfolio.

Though finding the top industries is not easy, the Zacks Industry Rank makes this task relatively simple. Along with screening the industries, one needs to be very careful in picking stocks to get meaningful profits.

The 10 Best Stocks to Buy for 2017

We zeroed in on stocks with favorable Zack Industry Rank and a Zacks Rank #1 (Strong Buy) or 2 (Buy) and have come up with these 4 stocks to buy now…

Best-Bet Stocks to Buy In the Financial Sector: AeroCentury Corp. (ACY)

AeroCentury Corp. (ACY), based in Burlingame, CA, is an independent aircraft leasing company. Belonging to the Financial-Leasing Companies industry that carries a Zacks Industry Rank #17 (top 6%), the company acquires aircraft and aircraft engines for lease to regional airlines and commercial users in the U.S. and worldwide.

This Zacks Rank #2 stock gained about 3.7% over the last three months, compared with about 9.2% gain for the Zacks categorized Leasing Companies industry. The stock’s earnings estimates for the current year have been revised significantly upward in the last 30 days. You can see the complete list of today’s Zacks #1 Rank stocks here.

 

Best-Bet Stocks to Buy In the Financial Sector: McGrath RentCorp (MGRC)

McGrath Rentcorp (MGRC), headquartered in Livermore, CA, is a business to business rental company. The company belongs to the Financial-Leasing Companies industry, which has a Zacks Industry Rank #17 (top 6%).

The company rents and sells relocatable modular buildings, electronic test equipment, and liquid and solid containment tanks and boxes in the U.S. and worldwide.

This Zacks Rank #2 stock gained about 21.3% over the last three months, compared with about 9.2% gain for the Zacks categorized Leasing Companies industry. The stock’s earnings estimates for the current year have been revised 1.9% upward over the last 60 days.

 

Best-Bet Stocks to Buy In the Financial Sector: Employers Holdings, Inc. (EIG)

Employers Holdings, Inc. (EIG), headquartered in Reno, NV, operates in the Insurance – Accident and Health industry, which has a Zacks Industry Rank #23 (top 9%). The company provides workers’ compensation insurance to small businesses in low- to medium-hazard industries.

This Zacks Rank #1 stock gained about 34.6% year to date, compared with about 20.4% gain for the Zacks categorized Accident & Health industry. The stock’s earnings estimates for the current year have been revised 3.0% upward over the last 60 days.

Best-Bet Stocks to Buy In the Financial Sector: Unum Group (UNM)

Unum Group (UNM), based in Chattanooga, TN, provides group and individual disability insurance products and services primarily in the U.S. and the UK. The company belongs to the Insurance – Accident and Health industry that carries a Zacks Industry Rank #23 (top 9%).

This Zacks Rank #2 stock gained about 30.9% year to date, outperforming the 20.4% gain for the Zacks categorized Accident & Health industry. The stock’s earnings estimates for the current year have been revised 1.0% upward over the last 60 days.

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AEROCENTURY CP (ACY): Free Stock Analysis Report

MCGRATH RENTCOR (MGRC): Free Stock Analysis Report

UNUM GROUP (UNM): Free Stock Analysis Report

EMPLOYERS HLDGS (EIG): Free Stock Analysis Report

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