The Smartest Financial Stocks to Buy With $2,000 Right Now

Group 1: Financial Sector Overview - Many financial stocks are overlooked compared to high-profile sectors like artificial intelligence, presenting potential investment opportunities [1] - Traditional financial companies are increasingly focusing on technology to enhance customer banking experiences [2] Group 2: Robinhood - Robinhood has evolved from a brokerage to a full-service banking platform, gaining popularity among users [3] - The company offers a subscription service for $5 per month or $50 per year, providing competitive yields on uninvested cash (currently 4%), larger instant deposits, and access to research tools [5] - In Q1, Robinhood increased its Gold subscribers by 1.5 million year-over-year, reaching a total of 3.2 million members [6] - The conversion rate for new members to Gold subscribers is impressive, with 1-in-3 members upgrading quickly [7] - Other revenue, primarily from Gold subscriptions, grew 54% year-over-year to $54 million in Q1, constituting nearly 6% of total revenue [7] - Despite a high valuation at approximately 53 times forward earnings, Robinhood is expected to continue attracting new investors and may increase subscription fees as it adds new products [8] Group 3: Wells Fargo - Wells Fargo has successfully removed its asset cap, which previously limited its balance sheet expansion to $1.95 trillion due to past scandals [9] - The removal of the asset cap allows Wells Fargo to expand its balance sheet, which is crucial for profitability through deposits and loans [10] - Under CEO Charles Scharf, the bank has improved its regulatory compliance, reduced expenses, exited non-core businesses, and invested in higher-return sectors like investment banking [11] - Future growth opportunities are anticipated in the bank's markets business, consumer lending, and funds financing [12] - The stock trades at 1.9 times its tangible book value, indicating a premium valuation, but the removal of the asset cap is expected to enhance earnings and tangible book value growth [13]