Get Your Money Out of These 3 Financial Stocks by 2025

Company Overview - Comerica is an American financial services company with over 400 branches across the US, including Texas, Michigan, California, Florida, and Arizona [1] - KeyCorp is the holding company for KeyBank National Association, one of the top 30 largest US banks, based in Cleveland, Ohio, known for its high dividend rate of around 5.50% [16][17] - SoFi Technologies is an American personal finance company and online bank based in San Francisco, offering various financial products [6] Financial Performance - Comerica generated a quarterly total revenue of $1.53 billion, declining by 4.3% year-over-year, with net income from continuing operations falling by 5.2% to $237 million [2] - KeyCorp has performed poorly across all key metrics, with a significant decline in revenue and net income [4] - SoFi Technologies reported a net revenue of $645 million and a net income of $88 million, indicating strong financial performance [19] Market Position and Challenges - Comerica's market cap is around $7.4 billion, but it was recently delisted from the S&P 500 due to not meeting the market cap requirement of $12.7 billion [13][14] - Despite beating analysts' estimates, Comerica's shares tumbled, and it was informed by the US Treasury that it would not continue providing the Direct Express Card [15] - SoFi Technologies faces concerns regarding its profitability sustainability, particularly due to its focus on student loan refinancing and high borrower credit risk [7] Industry Context - The financial industry remains one of the most profitable sectors globally, but some financial stocks, including KeyCorp, have not benefited from the industry's resurgence [9][10] - A combination of low revenue generation, inability to facilitate lending, and low liquidity of the target audience makes certain financial stocks unattractive for investors [10]