3 Best Performing Financial Services Stocks on the S&P 500 Index

Core Viewpoint - The Financial Services sector is experiencing significant momentum driven by expectations of deregulation and a pro-business environment under the Trump 2.0 administration, with notable stock performances from Citigroup, Capital One, and Goldman Sachs [2][3]. Financial Services Sector Overview - The S&P 500 Index has gained 23.3% in 2024 and 4.5% in 2025, with the Financial Services sector being the second-best performer, up 8% this year [1]. - The sector's bullish outlook is attributed to anticipated regulatory changes and a favorable economic climate [3]. Citigroup Analysis - Citigroup is undergoing a major restructuring to streamline operations, planning to cut 20,000 jobs by 2026 and exit consumer banking in several markets to focus on investment banking and wealth management [5]. - The bank aims for a revenue CAGR of 4-5% and expects to save $2-2.5 billion annually by 2026 [5]. - Citigroup is enhancing its digital strategy with AI tools, reaching 140,000 users across eight countries, and has seen a 5$35.3 billion all-stock deal, which is expected to create a competitive payments platform [9][10]. - The merger is projected to generate $2.7 billion in pre-tax synergies and be over 15$7.73 billion, following a decline in previous years [15][16]. - Goldman retains a strong position in M&A activity and has a Zacks Rank of 1 [16].