Buy 5 Top-Ranked High-Flying Finance Stocks for 2026 to Tap Upside

U.S. stock markets are set to close another very successful year after the last two years. With just one and a half months of trading left, Wall Street has maintained its impressive bull run. The three major stock indexes — the Dow, the S&P 500 and the Nasdaq Composite — have rallied 11.2%, 14.8% and 18.8%, respectively. 

Although the rally is predominantly driven by the technology sector, buoyed by the astonishing growth of generative and agentic artificial intelligence (AI), other sectors like finance also contributed. The Financial Select Sector SPDR (XLF) — one of the 11 broad-sectors of the S&P 500 Index — is up 8.5% year to date.

Here we recommend five finance stocks with a favorable Zacks Rank to invest in for 2026. These stocks have popped more than 30% this year, yet their current Zacks Rank indicates more upside in 2026.

These stocks are - Morgan Stanley MS, Interactive Brokers Group Inc. IBKR, Robinhood Markets Inc. HOOD, Cboe Global Markets Inc. CBOE and Invesco Ltd. IVZ. Each of our picks currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. 

The chart below shows the price performance of our five picks year to date.

Morgan Stanley

Morgan Stanley’s focus on wealth and asset management operations along with its strategic alliances and acquisitions will aid the top line. The deal to buy EquityZen will help MS tap the rapidly growing private markets landscape. The performance of the investment banking (IB) business will continue to be driven by a strong pipeline. We project MS’ total revenues and IB fees to increase 11.7% and 12.8% in 2025, respectively.

On the other hand, while MS’ trading revenues have been increasing, growth in the same might become challenging in the future because of the volatile nature of the business. Yet, MS’ efficient capital distributions reflect a solid balance sheet.

Morgan Stanley has an expected revenue and earnings growth rate of 3.9% and 5.8%, respectively, for next year. The Zacks Consensus Estimate for next year’s earnings has improved 3.7% over the last 30 days.

Interactive Brokers Group Inc.

Interactive Brokers Group’s efforts to develop proprietary software, lower compensation expenses relative to net revenues, enhance its emerging market customers and global footprint, along with relatively high rates, are expected to continue aiding revenues. 

IBKR’s third-quarter 2025 results reflected solid revenue growth and lower expenses. IBKR’s efforts to develop proprietary software and enhance its emerging market customers and global footprint, along with relatively high rates and lower compensation expenses relative to net revenues, are expected to support its top-line growth. IBKR’s initiatives to expand its product suite and the reach of its services will bolster its market share.

Interactive Brokers Group has an expected revenue and earnings growth rate of 5.5% and 8.1%, respectively, for next year. The Zacks Consensus Estimate for next year’s earnings has improved 1.4% in the last seven days.

Robinhood Markets Inc.

Robinhood Markets operates a financial services platform in the United States that allows users to invest in stocks, exchange-traded funds, options, gold, and cryptocurrencies. HOOD buys and sells Bitcoin, Ethereum, Dogecoin and other cryptocurrencies using its Robinhood Crypto platform. 

Given the higher retail participation in markets, HOOD’s trading revenues are expected to improve in the near future. Buyouts and product diversification efforts to become a leader in the active trader market will likely bolster its financials. 

HOOD’s third-quarter 2025 results were aided by solid trading activity and growth in net interest revenues. HOOD’s vertical integration will likely enhance its product velocity. Further, a robust liquidity position will help HOOD to sustain share repurchases.

Robinhood Markets has an expected revenue and earnings growth rate of 20.3% and 16.2%, respectively, for next year. The Zacks Consensus Estimate for next year’s earnings has improved 9.7% over the last 30 days.

Cboe Global Markets Inc.

Cboe Global Markets’ trading volume growth should drive transaction fees and, in turn, fuels organic growth. CBOE increased its 2025 organic total net revenue growth target to low double digit to mid-teens and Data Vantage organic net revenue to grow in high single-digit to low double-digit. 

CBOE remains on track to grow its recurring non-transaction revenues. Prudent acquisitions are improving CBOE’s competitive edge by diversifying portfolio, adding capabilities, generating expense synergies and through expansion into new geographies. Strategic realignments to focus on core business bode well. Strong liquidity has been aiding CBOE’s capital deployment.  

Cboe Global Markets has an expected revenue and earnings growth rate of 2.7% and 4.7%, respectively, for next year. The Zacks Consensus Estimate for next year’s earnings has improved 3% in the last 30 days.

Invesco Ltd.

Invesco operates as an independent investment manager and offers a wide range of investment products and services. IVZ’s third-quarter 2025 results were aided by higher assets under management (AUM). Strategic expansion plans, a strong global presence, diverse offerings, balance sheet recapitalization and robust AUM will likely support its financials. 

IVZ’s efforts to convert QQQ into an open-end ETF and sell the majority stake in the India business to establish a joint venture will aid revenue growth. Efforts to boost operating efficiency are likely to keep expenses within limits. IVZ’s decent balance sheet and liquidity position will likely enable it to pursue sustainable capital distributions.

Invesco has an expected revenue and earnings growth rate of 14.4% and 28.6%, respectively, for next year. The Zacks Consensus Estimate for next year’s earnings has improved 3.3% in the last 30 days.

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This article originally published on Zacks Investment Research (zacks.com).

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