The financial sector is the core of the global economy. The Best US financial companies are the world’s leading providers of a wide range of other financial services. This is a list of the best financial companies in the US ranked by their market capitalisation.
Stock Name | Ticker | Stock Price | Market Cap |
---|---|---|---|
Berkshire Hathaway Inc. Hld B | BRK.B | $ 316.97 | 696.071 B |
Visa, Inc. | V | $ 237.08 | 448.179 B |
JPMorgan Chase & Co. | JPM | $ 128.49 | 378.192 B |
MasterCard Inc. | MA | $ 366.93 | 347.014 B |
Bank of America Corp. | BAC | $ 29.32 | 232.031 B |
Morgan Stanley | MS | $ 87.55 | 147.254 B |
Wells Fargo & Co. | WFC | $ 37.47 | 141.527 B |
The Charles Schwab Corp. | SCHW | $ 76.6 | 139.094 B |
Royal Bank of Canada | RY | $ 93.55 | 130.091 B |
American Express Co. | AXP | $ 163.12 | 121.372 B |
Toronto-Dominion Bank | TD | $ 59.13 | 107.127 B |
The Goldman Sachs Group, Inc. | GS | $ 318.53 | 106.324 B |
Prologis, Inc. | PLD | $ 114.12 | 105.382 B |
UBS Group AG | UBS | $ 28.51 | 98.704 B |
BlackRock, Inc. | BLK | $ 648.32 | 97.401 B |
American Tower Corporation | AMT | $ 208.1 | 97.016 B |
Marsh & McLennan Companies, Inc. | MMC | $ 190.58 | 94.138 B |
Progressive Corp. | PGR | $ 153.97 | 90.124 B |
Citigroup Inc. | C | $ 43.71 | 84.960 B |
The Chubb Corporation | CB | $ 188.92 | 78.120 B |
When speaking of the financial sector, most individuals think of it as banks. Even though banks form the biggest part of the financial sector, the sector also includes many other types of businesses.
The US financial sector comprises businesses that offer insurance, loan, banking, payment services and money management services. It also includes investment brokerage, asset management, and credit services companies. The financial sector offers a better balance between risk and reward than many other sectors right now.
Some of the popular companies in the financial sector include American International Group Inc., Bank of America, Wells Fargo, JP Morgan Chase, Citi, Berkshire Hathaway Inc., Visa, Master Card and Morgan Stanley.
You must be well aware of the risks before investing in the financial sector. While analysing a financial company, look at the overall company performance and economy, and not just one or two metrics. Also, financial sector investment is best in the long term.
There are a lot of things that can change the price of financial stocks in the short term, and many of them, like a weak economy or falling interest rates, have little to do with how strong the business is. Thus, pick fundamentally strong stocks and invest in the sector only if you have a long-term investment horizon.
The financial sector forms the core of the US economy. During the COVID-19 pandemic, the financial sector stocks have seen the worst. Banking stocks can often be cyclical in nature. To elaborate, they can lose value when the economy is bad and when unemployment goes up. During such times, businesses and individuals have trouble paying their bills. This can cause banks to have a lot of bad debt.
As interest rates go up, many companies in the financial sector have better chances to make more money. Fintech innovations like blockchain are more likely to be integrated into the industry than to change it. In the long term, the financial sector may have the potential to yield good returns.