Wall Street Favorites: 3 Financial Services Stocks With Strong Buy Ratings for May 2024


  • Analysts are extremely bullish on these financial services stocks. 
  • JPMorgan Chase (JPM): The lender is seeing improvements in all areas of its business.
  • Visa (V): The credit card company is benefitting from continued spending on the part of consumers. 
  • Goldman Sachs (GS): A resumption of deals on Wall Street has this investment bank’s stock marching higher.  
financial services stocks - Wall Street Favorites: 3 Financial Services Stocks With Strong Buy Ratings for May 2024

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Things are looking up for banks and other financial services firms. After four difficult years that involved the pandemic, skyrocketing inflation, the highest interest rates in more than 25 years, and a bear market on Wall Street, the clouds are starting to give way to sunshine. Covid-19 has receded, inflation moved lower, the stock market is in the midst of a bull run, and the United States Federal Reserve is expected to cut interest rates this autumn. If you are looking for top financial services stocks.

Additionally, the U.S. economy has managed to avoid a recession and consumers continue to spend using their credit cards and other loan vehicles. This has added up to better earnings and improved financial positions at the banks and lenders. Bank stocks are finally moving higher after years of trading sideways or lower. The improving conditions have led Wall Street analysts to upgrade their ratings and price targets on several financial services stocks. Here are three that have strong buy ratings for May 2024.

Top Financial Services Stocks: JPMorgan Chase (JPM)

Chase Bank logo and storefront
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JPMorgan Chase (NYSE:JPM) continues to be the standout among U.S. banks. Over the last 12 months, JPM stock has gained 47%, including a 16% increase so far this year. The share price has been lifted by a string of better-than-expected financial results. In April, the lender delivered its first-quarter earnings report, and the results were typically strong, besting Wall Street forecasts on both the top and bottom lines.

The stellar earnings and stock performance have earned JPM stock a strong buy rating among 22 analysts who track the company. The median price target on JPMorgan’s stock is currently $214.66, which is 8% higher than current levels. Analysts see the bank continuing to benefit from an upsurge in equity trading activity. They also expect JPMorgan to get a revenue boost from revenue generated through Wall Street deals such as mergers and acquisitions (M&A) and initial public offerings (IPOs).

JPMorgan Chase remains the biggest bank in the world with assets under management of more than $3 trillion.

Visa (V)

several Visa branded credit cards
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Credit card giant Visa (NYSE:V) also enjoys a strong buy rating from Wall Street analysts. The 23 professionals that rate V stock have a median price target on the shares of $314.79, which is 13% above where it currently trades. The low price target of $275 is right around where the stock is now changing hands. Analysts see Visa continuing to post strong financial results, fueled by robust consumer spending using the company’s credit cards.

In late April, Visa reported first-quarter financial results that beat Wall Street estimates as consumer spending remains strong despite elevated inflation and interest rates. Visa reported EPS of $2.51 compared to $2.43 that was forecast among analysts. Revenue came in at $8.80 billion, beating consensus estimates of $8.62 billion. Sales were up 10% from a year earlier. The company singled out spending on travel as a Q1 highlight.

Visa’s overall payment volume and cross-border volume increased 8% and 16% respectively during the quarter. In terms of guidance, Visa reiterated its previous outlook for low-double-digit revenue growth in 2024. V stock has gained 20% in the past year.

Goldman Sachs (GS)

In this photo illustration the Goldman Sachs Group (GS) logo displayed on a smartphone screen and a stock market graph in the background
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Among investment banks, Goldman Sachs (NYSE:GS) is highly regarded and enjoys a strong buy rating. The 21 analysts who cover the Wall Street firm have a median price target on the shares of $459.79, implying a potential gain of less than 2%. However, it should be noted that GS stock has enjoyed a big rally in recent months. In the last year, the company’s share price has risen 40%.

Analysts like that Goldman Sachs is again focusing on what it does best — Wall Street deals. The investment firm has moved away from ill-advised forays into retail banking and consumer loans. The refocus on M&A and IPO activity comes amid an increase in deals activities as the stock market rally carries on. Goldman Sachs Q1 print was better-than-expected, with the bank reporting that its profits increased 28% from a year earlier due to a rebound in capital markets activities. If you are looking for the top financial services stocks, start here.

On the date of publication, Joel Baglole did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Joel Baglole has been a business journalist for 20 years. He spent five years as a staff reporter at The Wall Street Journal, and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia.

Article printed from InvestorPlace Media, https://investorplace.com/2024/05/wall-street-favorites-3-financial-services-stocks-with-strong-buy-ratings-for-may-2024/.

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