3 Financials Stocks on Our Watchlist

Financial firms serve as the backbone of the economy, providing essential services from lending and investment management to risk management and payment processing. But worries about economic uncertainty and potential market volatility have kept sentiment in check, and over the past six months, the industry has tumbled by 2.4%. This performance is a far cry from the S&P 500’s 7.7% ascent.

Despite the lackluster result, a few diamonds in the rough can produce earnings growth no matter what, and we started StockStory to help you find them. Keeping that in mind, here are three resilient financials stocks at the top of our wish list.

Carlyle (CG)

Market Cap: $19.14 billion

Founded in 1987 with just $5 million in capital and named after the iconic New York hotel where the founders first met, The Carlyle Group (NASDAQ:CG) is a global investment firm that raises, manages, and deploys capital across private equity, credit, and investment solutions.

Why Are We Bullish on CG?

1. Annual revenue growth of 11.2% over the last five years beat the sector average and underscores the unique value of its offerings
2. Efficiency rose over the last two years as its fee-related earnings increased by 19.9% per year
3. Performance over the past two years shows its incremental sales were more profitable, as its annual earnings per share growth of 20% outpaced its revenue gains

Carlyle’s stock price of $53.78 implies a valuation ratio of 12.4x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.

Payoneer (PAYO)

Market Cap: $2.10 billion

Founded during the early days of global e-commerce in 2005 to solve international payment challenges, Payoneer (NASDAQ:PAYO) provides financial technology services that enable small and medium-sized businesses to send and receive payments globally across borders.

Why Is PAYO a Good Business?

1. Market share has increased this cycle as its 28.2% annual revenue growth over the last five years was exceptional
2. Share repurchases have amplified shareholder returns as its annual earnings per share growth of 56.2% exceeded its revenue gains over the last two years

At $5.88 per share, Payoneer trades at 20.9x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.

NerdWallet (NRDS)

Market Cap: $703.9 million

Born from founder Tim Chen's frustration with the lack of transparent credit card information when helping his sister in 2009, NerdWallet (NASDAQ:NRDS) is a digital platform that provides financial guidance to help consumers and small businesses make smarter decisions about credit cards, loans, insurance, and other financial products.

Why Are We Fans of NRDS?

1. Annual revenue growth of 26.5% over the past five years was outstanding, reflecting market share gains this cycle
2. Incremental sales over the last two years have been highly profitable as its earnings per share increased by 266% annually, topping its revenue gains

NerdWallet is trading at $9.67 per share, or 7.3x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.