3 Unique Financial Stocks Investors Can Buy Now

Financial Sector Overview - The financial sector is currently the most represented sector on the Zacks Rank with 44 stocks, followed by the computer sector with 36 stocks [1] - Over the past year, the financial sector has been one of the top performers in the market, second only to the communications sector [2] Company Highlights Virtu Financial - Virtu Financial is a leading global market maker and financial technology firm established in 2008, providing liquidity and competitive pricing across various asset classes [3] - The company utilizes advanced technology for efficient trading solutions, focusing on low latency and high-speed execution, and offers analytics and execution services [4] - Analysts have raised earnings estimates for Virtu, resulting in a Zacks Rank 1 (Strong Buy) rating, with FY24 and FY25 earnings projected to grow by 27% and 13% YoY respectively [5][6] - Virtu has a dividend yield of 4.2% and trades at a one-year forward earnings multiple of 11.3x, aligning with its 10-year median [5][6] - The company has a PEG ratio of 0.5, indicating a deep discount based on its 3-5 year EPS growth forecast of 22.3% annually [8] Palomar Holdings - Palomar Holdings is a specialty property insurance company founded in 2014, focusing on tailored insurance solutions for earthquake, wind, and flood risks [9] - The company has a Zacks Rank 1 (Strong Buy) rating, with FY24 earnings estimates increasing by 8% in the last two months [11] - Sales are expected to grow significantly, with a projected YoY increase of 32% this year and 22.8% next year [11] - Palomar is currently trading at a one-year forward earnings multiple of 20.9x, which is below the industry average and its five-year median of 24.1x [14] StepStone Group - StepStone Group is a global private markets investment firm established in 2007, managing $156 billion in assets and specializing in customized investment solutions [16][17] - The firm has experienced a 21% annual growth in assets under management over the last five years and holds a Zacks Rank 1 (Strong Buy) rating [17] - Current year sales are expected to increase by 18.4% YoY, with EPS projected to grow by 40.5%, while next year's sales are anticipated to grow by 17.2% YoY and EPS by 22% [18] - StepStone Group has outperformed the market with a remarkable 112% increase in the last twelve months [19] Investment Considerations - For investors looking to diversify within the financial sector, Virtu Financial, Palomar Holdings, and StepStone Group present unique opportunities with strong growth projections and solid market performance [21]