As 2025 comes to a close, the financial sector shows significant strength, led by major banks. Citigroup’s shares have surged by 68% year-to-date, while JPMorgan’s have risen by 35%. The broader financial market, represented by the Zacks Finance Market, has posted an 18% return, trailing the S&P 500 and Nasdaq indices.
Investors are drawn to finance stocks not only for their performance but also for appealing dividends, averaging 2%, compared to the S&P 500’s 1%. The sector offers a forward price-to-earnings ratio of 19x, which is lower than the inflated valuations of tech stocks on the Nasdaq.
Currently, the Zacks Finance Market is rated second among 16 sectors, only behind the Computer and Technology sector. Notably, the Securities and Exchanges industry ranks in the top 10% of over 240 Zacks industries, benefiting from positive earnings revisions among leading exchange operators like Nasdaq and S&P Global.
