3 Financial Stocks to Buy Now on Core PCE Coming in High

Group 1: Economic Environment - The May 2025 Personal Consumption Expenditures (PCE) inflation report indicates core PCE inflation rose approximately 0.22% month over month and 2.68% year over year, reinforcing expectations for the Fed's hawkish stance [1][11] - Treasury yields have increased, with the benchmark 10-year yield climbing from roughly 3.35% to about 3.45%, reflecting market reactions to persistent inflation data [2][11] Group 2: Financial Sector Performance - Financial institutions, including banks and insurance companies, are expected to see increased profitability due to higher lending rates and improved net interest margins in a high-rate environment [4][5] - The S&P 500 Financials Select Sector SPDR (XLF) has risen 9.1% year to date as of June 30, indicating strong performance in the financial sector [5] Group 3: Investment Opportunities - Stocks such as Nelnet, Inc. (NNI), Pagaya Technologies Ltd. (PGY), and United Fire Group, Inc. (UFCS) are highlighted as viable investment options due to their strong earnings momentum and favorable growth rates [3][11] - Nelnet (NNI) has an expected earnings growth rate of 59% for the current year, with a Zacks Rank 1 and a VGM Score of B [8] - Pagaya Technologies (PGY) shows an expected earnings growth rate of 195.2% for the current year, also holding a Zacks Rank 1 and a VGM Score of B [9] - United Fire Group (UFCS) has an expected earnings growth rate of 8% for the next year, with a Zacks Rank 2 and a VGM Score of B [10]