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Financials: insurers in favour, the fast growers out of it
Financials Market Sentiment
Healthy but fading
What is the Financials theme?
- 01
The surprise
The fastest-growing parts of financials have fallen hardest, while the slowest-growing part has risen.
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Over three months the typical investment bank fell 16.0%, the worst of any segment, while insurers, with the slowest sales growth, edged higher.
- Investment banks (stage: Markets), 2 stocks: GS, MS. Combined market cap $535.3bn, 6.3% of the theme. Price change of the typical stock (median): 7 days -4.1%, 1 month -9.5%, 3 months -16.0%, 6 months -6.0%, this year so far +1.4%. 0 of 2 are in an uptrend (above their 200-day line), 0%. Typical price against next year's expected earnings: 12.5x. Typical price against the last year's earnings: 14.0x. Typical revenue growth: +33.3%. Typical earnings-per-share growth: +77.4%. Typical operating margin: 39.1%. Typical net margin: 28.8%. Typical distance below 52-week high: 23.6%. Typical gap to analysts' average target: +19.1%. How this business works: Advises on mergers, underwrites share and bond sales, and trades for clients. Revenue swings with how busy markets are, so a wave of deals or volatile markets lifts it and quiet markets cut it.
- Brokers (stage: Markets), 3 stocks: SCHW, IBKR, HOOD. Combined market cap $380.3bn, 4.5% of the theme. Price change of the typical stock (median): 7 days -7.7%, 1 month -14.9%, 3 months -11.2%, 6 months +0.3%, this year so far -9.4%. 0 of 3 are in an uptrend (above their 200-day line), 0%. Typical price against next year's expected earnings: 24.5x. Typical price against the last year's earnings: 31.0x. Typical revenue growth: +31.5%. Typical earnings-per-share growth: +42.6%. Typical operating margin: 52.7%. Typical net margin: 42.0%. Typical distance below 52-week high: 21.8%. Typical gap to analysts' average target: +32.1%. How this business works: Gives investors accounts to buy and sell shares, and earns from trading and from interest on the cash customers hold. Busy markets and higher rates both help, and new account numbers show momentum.
- Asset managers (stage: Investing), 4 stocks: BLK, BX, KKR, APO. Combined market cap $445.9bn, 5.3% of the theme. Price change of the typical stock (median): 7 days -5.8%, 1 month -11.9%, 3 months -7.9%, 6 months -13.7%, this year so far -25.4%. 1 of 4 are in an uptrend (above their 200-day line), 25%. Typical price against next year's expected earnings: 13.2x. Typical price against the last year's earnings: 27.4x. Typical revenue growth: +33.3%. Typical earnings-per-share growth: +48.6%. Typical operating margin: 27.3%. Typical net margin: 18.3%. Typical distance below 52-week high: 31.4%. Typical gap to analysts' average target: +32.3%. How this business works: Invests money for pension funds, institutions and savers, and earns fees on what it manages. Private-markets firms such as Blackstone, KKR and Apollo also earn performance fees when they sell investments, so busy deal markets matter.
- Insurers (stage: Insurance), 12 stocks: BRK-B, PGR, CB, AIG, MET, ALL, ALV.DE, CS.PA, ZURN.SW, LGEN.L, AV.L, PRU.L. Combined market cap $1.86tn, 22.0% of the theme. Price change of the typical stock (median): 7 days +3.2%, 1 month +1.5%, 3 months +1.4%, 6 months +9.9%, this year so far +9.4%. 11 of 12 are in an uptrend (above their 200-day line), 92%. Typical price against next year's expected earnings: 11.0x. Typical price against the last year's earnings: 13.7x. Typical revenue growth: +10.2%. Typical earnings-per-share growth: +5.4%. Typical operating margin: 14.4%. Typical net margin: 12.0%. Typical distance below 52-week high: 5.2%. Typical gap to analysts' average target: +4.6%. How this business works: Collects premiums, pays claims and invests the money in between. Profit depends on pricing policies above the cost of claims, which disasters can upset, and on what the invested money earns, which rises with interest rates.
- US banks (stage: Lending), 4 stocks: JPM, BAC, C, WFC. Combined market cap $1.70tn, 20.1% of the theme. Price change of the typical stock (median): 7 days -4.8%, 1 month -6.3%, 3 months -4.8%, 6 months -2.6%, this year so far -0.9%. 1 of 4 are in an uptrend (above their 200-day line), 25%. Typical price against next year's expected earnings: 10.0x. Typical price against the last year's earnings: 11.9x. Typical revenue growth: +11.8%. Typical earnings-per-share growth: +40.7%. Typical operating margin: 34.1%. Typical net margin: 26.9%. Typical distance below 52-week high: 17.0%. Typical gap to analysts' average target: +21.3%. How this business works: Takes deposits and lends them out, and the largest also trade and advise on deals. Profit depends on the gap between what loans earn and what deposits cost, which interest rates set, and on how many loans go bad.
- UK banks (stage: Lending), 5 stocks: HSBA.L, BARC.L, LLOY.L, NWG.L, STAN.L. Combined market cap $598.9bn, 7.1% of the theme. Price change of the typical stock (median): 7 days -2.2%, 1 month -7.6%, 3 months -5.6%, 6 months +3.5%, this year so far +4.9%. 3 of 5 are in an uptrend (above their 200-day line), 60%. Typical price against next year's expected earnings: 8.6x. Typical price against the last year's earnings: 12.9x. Typical revenue growth: +14.5%. Typical earnings-per-share growth: +23.9%. Typical operating margin: 45.0%. Typical net margin: 27.9%. Typical distance below 52-week high: 16.3%. Typical gap to analysts' average target: +17.4%. How this business works: The UK's high-street and international banks. Mortgages and savings dominate the domestic lenders, so Bank of England rates drive what they earn, while HSBC and Standard Chartered make most of their money in Asia.
- European banks (stage: Lending), 6 stocks: SAN.MC, BNP.PA, INGA.AS, UCG.MI, DBK.DE, UBSG.SW. Combined market cap $723.2bn, 8.5% of the theme. Price change of the typical stock (median): 7 days -0.2%, 1 month -7.0%, 3 months -5.2%, 6 months +9.5%, this year so far +14.4%. 4 of 6 are in an uptrend (above their 200-day line), 67%. Typical price against next year's expected earnings: 9.1x. Typical price against the last year's earnings: 11.8x. Typical revenue growth: +10.6%. Typical earnings-per-share growth: +19.7%. Typical operating margin: 40.9%. Typical net margin: 30.0%. Typical distance below 52-week high: 11.9%. Typical gap to analysts' average target: +15.3%. How this business works: Europe's largest lenders, from retail banking to investment banking. ECB rates set their lending margins, and many are returning large sums to shareholders after years when regulators held them back.
- Exchanges and data (stage: Markets), 6 stocks: ICE, CME, NDAQ, LSEG.L, SPGI, MCO. Combined market cap $519.4bn, 6.1% of the theme. Price change of the typical stock (median): 7 days +1.5%, 1 month +4.1%, 3 months +0.1%, 6 months +2.5%, this year so far -2.9%. 5 of 6 are in an uptrend (above their 200-day line), 83%. Typical price against next year's expected earnings: 20.6x. Typical price against the last year's earnings: 26.6x. Typical revenue growth: +10.6%. Typical earnings-per-share growth: +15.9%. Typical operating margin: 42.8%. Typical net margin: 30.3%. Typical distance below 52-week high: 11.4%. Typical gap to analysts' average target: +17.5%. How this business works: Runs stock and futures exchanges, and sells indexes, ratings and market data. Much of the revenue is recurring subscriptions, and trading volumes rise when markets are volatile, so these often hold up when other financials fall.
- Payments and cards (stage: Payments), 6 stocks: V, MA, AXP, PYPL, COF, SOFI. Combined market cap $1.70tn, 20.1% of the theme. Price change of the typical stock (median): 7 days +1.2%, 1 month +4.8%, 3 months -1.7%, 6 months +4.2%, this year so far -7.9%. 3 of 6 are in an uptrend (above their 200-day line), 50%. Typical price against next year's expected earnings: 16.5x. Typical price against the last year's earnings: 24.2x. Typical revenue growth: +11.4%. Typical earnings-per-share growth: +11.0%. Typical operating margin: 27.0%. Typical net margin: 36.5%. Typical distance below 52-week high: 20.7%. Typical gap to analysts' average target: +13.0%. How this business works: Runs card networks or lends on cards. Visa and Mastercard earn a small fee on every payment and carry no lending risk, so they follow consumer spending, while card lenders also depend on borrowers repaying.
- 02
Where the money went
Money favours insurers and exchanges; every broker and investment bank is now in a downtrend.
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Every insurer but one is in an uptrend, while the investment banks stayed weak even after a strong Goldman Sachs quarter.
- Insurers (stage: Insurance), 12 stocks: BRK-B, PGR, CB, AIG, MET, ALL, ALV.DE, CS.PA, ZURN.SW, LGEN.L, AV.L, PRU.L. Combined market cap $1.86tn, 22.0% of the theme. Price change of the typical stock (median): 7 days +3.2%, 1 month +1.5%, 3 months +1.4%, 6 months +9.9%, this year so far +9.4%. 11 of 12 are in an uptrend (above their 200-day line), 92%. Typical price against next year's expected earnings: 11.0x. Typical price against the last year's earnings: 13.7x. Typical revenue growth: +10.2%. Typical earnings-per-share growth: +5.4%. Typical operating margin: 14.4%. Typical net margin: 12.0%. Typical distance below 52-week high: 5.2%. Typical gap to analysts' average target: +4.6%. How this business works: Collects premiums, pays claims and invests the money in between. Profit depends on pricing policies above the cost of claims, which disasters can upset, and on what the invested money earns, which rises with interest rates.
- Exchanges and data (stage: Markets), 6 stocks: ICE, CME, NDAQ, LSEG.L, SPGI, MCO. Combined market cap $519.4bn, 6.1% of the theme. Price change of the typical stock (median): 7 days +1.5%, 1 month +4.1%, 3 months +0.1%, 6 months +2.5%, this year so far -2.9%. 5 of 6 are in an uptrend (above their 200-day line), 83%. Typical price against next year's expected earnings: 20.6x. Typical price against the last year's earnings: 26.6x. Typical revenue growth: +10.6%. Typical earnings-per-share growth: +15.9%. Typical operating margin: 42.8%. Typical net margin: 30.3%. Typical distance below 52-week high: 11.4%. Typical gap to analysts' average target: +17.5%. How this business works: Runs stock and futures exchanges, and sells indexes, ratings and market data. Much of the revenue is recurring subscriptions, and trading volumes rise when markets are volatile, so these often hold up when other financials fall.
- Brokers (stage: Markets), 3 stocks: SCHW, IBKR, HOOD. Combined market cap $380.3bn, 4.5% of the theme. Price change of the typical stock (median): 7 days -7.7%, 1 month -14.9%, 3 months -11.2%, 6 months +0.3%, this year so far -9.4%. 0 of 3 are in an uptrend (above their 200-day line), 0%. Typical price against next year's expected earnings: 24.5x. Typical price against the last year's earnings: 31.0x. Typical revenue growth: +31.5%. Typical earnings-per-share growth: +42.6%. Typical operating margin: 52.7%. Typical net margin: 42.0%. Typical distance below 52-week high: 21.8%. Typical gap to analysts' average target: +32.1%. How this business works: Gives investors accounts to buy and sell shares, and earns from trading and from interest on the cash customers hold. Busy markets and higher rates both help, and new account numbers show momentum.
- Investment banks (stage: Markets), 2 stocks: GS, MS. Combined market cap $535.3bn, 6.3% of the theme. Price change of the typical stock (median): 7 days -4.1%, 1 month -9.5%, 3 months -16.0%, 6 months -6.0%, this year so far +1.4%. 0 of 2 are in an uptrend (above their 200-day line), 0%. Typical price against next year's expected earnings: 12.5x. Typical price against the last year's earnings: 14.0x. Typical revenue growth: +33.3%. Typical earnings-per-share growth: +77.4%. Typical operating margin: 39.1%. Typical net margin: 28.8%. Typical distance below 52-week high: 23.6%. Typical gap to analysts' average target: +19.1%. How this business works: Advises on mergers, underwrites share and bond sales, and trades for clients. Revenue swings with how busy markets are, so a wave of deals or volatile markets lifts it and quiet markets cut it.
- 2026-10-20 [GS]: Goldman Sachs reported third-quarter net earnings of $5.29 billion Why it matters: Goldman's result is the first read on trading and advisory income for the investment banks this season. Nine-month net revenues of $56.24 billion show how large the year has been, yet the investment bank group has stayed weak, so the market is not treating strong earnings as enough.
- 03
What is priced in
Investment banks look cheap for their growth, though their revenue swings with how busy markets are.
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The typical investment bank costs 12.5 times next year's expected profit, only a little more than insurers, though its profit growth is far faster.
- Investment banks (stage: Markets), 2 stocks: GS, MS. Combined market cap $535.3bn, 6.3% of the theme. Price change of the typical stock (median): 7 days -4.1%, 1 month -9.5%, 3 months -16.0%, 6 months -6.0%, this year so far +1.4%. 0 of 2 are in an uptrend (above their 200-day line), 0%. Typical price against next year's expected earnings: 12.5x. Typical price against the last year's earnings: 14.0x. Typical revenue growth: +33.3%. Typical earnings-per-share growth: +77.4%. Typical operating margin: 39.1%. Typical net margin: 28.8%. Typical distance below 52-week high: 23.6%. Typical gap to analysts' average target: +19.1%. How this business works: Advises on mergers, underwrites share and bond sales, and trades for clients. Revenue swings with how busy markets are, so a wave of deals or volatile markets lifts it and quiet markets cut it.
- Insurers (stage: Insurance), 12 stocks: BRK-B, PGR, CB, AIG, MET, ALL, ALV.DE, CS.PA, ZURN.SW, LGEN.L, AV.L, PRU.L. Combined market cap $1.86tn, 22.0% of the theme. Price change of the typical stock (median): 7 days +3.2%, 1 month +1.5%, 3 months +1.4%, 6 months +9.9%, this year so far +9.4%. 11 of 12 are in an uptrend (above their 200-day line), 92%. Typical price against next year's expected earnings: 11.0x. Typical price against the last year's earnings: 13.7x. Typical revenue growth: +10.2%. Typical earnings-per-share growth: +5.4%. Typical operating margin: 14.4%. Typical net margin: 12.0%. Typical distance below 52-week high: 5.2%. Typical gap to analysts' average target: +4.6%. How this business works: Collects premiums, pays claims and invests the money in between. Profit depends on pricing policies above the cost of claims, which disasters can upset, and on what the invested money earns, which rises with interest rates.
- 04
What could break it
Insurers have risen despite slow profit growth, and some claims costs are climbing.
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The typical insurer's earnings per share grew just 5.4%, and a report finds more crashed cars are being written off.
- Insurers (stage: Insurance), 12 stocks: BRK-B, PGR, CB, AIG, MET, ALL, ALV.DE, CS.PA, ZURN.SW, LGEN.L, AV.L, PRU.L. Combined market cap $1.86tn, 22.0% of the theme. Price change of the typical stock (median): 7 days +3.2%, 1 month +1.5%, 3 months +1.4%, 6 months +9.9%, this year so far +9.4%. 11 of 12 are in an uptrend (above their 200-day line), 92%. Typical price against next year's expected earnings: 11.0x. Typical price against the last year's earnings: 13.7x. Typical revenue growth: +10.2%. Typical earnings-per-share growth: +5.4%. Typical operating margin: 14.4%. Typical net margin: 12.0%. Typical distance below 52-week high: 5.2%. Typical gap to analysts' average target: +4.6%. How this business works: Collects premiums, pays claims and invests the money in between. Profit depends on pricing policies above the cost of claims, which disasters can upset, and on what the invested money earns, which rises with interest rates.
- 2026-10-19 [PGR, CB]: Progressive published its September results as a report says more cars are being written off after accidents. Why it matters: A report finds total loss frequency in auto insurance is climbing and more drivers are paying for repairs themselves. That points to claims costs and customer behaviour that auto insurers have to price for. Insurers as a group are in strong shape, so this is a detail to watch inside the group and not a sign of broad weakness. Chubb reports on 2026-10-20.
- 05
What happens next
Blackstone reports on 22 October, a test of whether the beaten-down growers can win favour back.
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For insurers, Chubb reports on 20 October, then AIG and Allstate in early November: watch whether written-off cars and weather losses push claims costs up.
- 2026-10-22: Blackstone (BX, Asset managers) reports earnings.
- 2026-10-20: Chubb (CB, Insurers) reports earnings.
- 2026-11-03: AIG (AIG, Insurers) reports earnings.
- 2026-11-04: Allstate (ALL, Insurers) reports earnings.
- 2026-10-20 [BX]: Blackstone raised $8.7 billion for a clean energy fund, while a $1.3 billion loan on its apartment properties moved to special servicing Why it matters: Fundraising shows investors still give Blackstone new money, while the loan transfer shows stress in apartment property debt, a risk for firms with real estate exposure. Blackstone reports earnings on 22 October, when its fee income and property commentary will be in focus.
- 2026-10-19 [PGR, CB]: Progressive published its September results as a report says more cars are being written off after accidents. Why it matters: A report finds total loss frequency in auto insurance is climbing and more drivers are paying for repairs themselves. That points to claims costs and customer behaviour that auto insurers have to price for. Insurers as a group are in strong shape, so this is a detail to watch inside the group and not a sign of broad weakness. Chubb reports on 2026-10-20.
- 2026-10-17 [ALL, PGR, CB]: Allstate reported $220 million of September catastrophe losses, and AM Best turned its outlook positive on AmTrust's insurers. Why it matters: Allstate's third-quarter catastrophe losses reached $1.65 billion, the weather cost that drives swings in home and auto insurer profits. The AM Best outlook change on AmTrust is a separate, positive credit signal. Chubb reports on October 20, so the next set of insurer numbers is close.
Where it leads
Insurers and Investment banks
Insurers drew the money and face some rising claims costs, while investment banks are fast growers the market has left cheap for their growth.
Closest to a screener match · Monday's close, 19 Oct
Insurers
Investment banks
- Not a match
Three checks short of a pick.
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Behind line 02 · Where the money went
Which parts of the chain are working?
Every segment's share of stocks in an uptrend, on one scale, then the stocks inside whichever one you pick.
Share of each segment above its 200-day EMA
Theme average 58%- InsurersInsurance92%11/12+2.8%
- Exchanges and dataMarkets83%5/6+2.5%
- European banksLending67%4/6-0.1%
- UK banksLending60%3/5-2.3%
- Payments and cardsPayments50%3/6+2.8%
- US banksLending25%1/4-2.9%
- Asset managersInvesting25%1/4-2.3%
- BrokersMarkets0%0/3-8.5%
- Investment banksMarkets0%0/2-4.2%
Insurers, Exchanges and data and European banks are at 67% or better. Asset managers, Brokers and Investment banks are at 25% or less.
Inside a segment
Share US banks in Financials
Next earnings: JPM, WFC, C · 14 Jan
Behind line 05 · What happens next
What is coming?
Every earnings date and event for the theme's stocks in the next 28 days, so you can see when the stocks above report.
What's next
Next 28 days- 18–21 OctconferencePayments and cards · US banks
Money20/20 USA 2026 (Las Vegas)
Payments networks, card issuers, banks and fintechs meet, announce products and sign partnerships here. Product launches and deal news can move card, payments and bank-technology shares. Written by a model. - 19–20 Octconference
SIFMA Annual Meeting (Washington, DC)
An invitation-only gathering of finance leaders and policymakers on the issues facing the markets. Remarks on regulation and market structure can affect broker-dealers and investment banks. Written by a model. - 20 Octearnings
- 21 Octearnings
- 22 Octearnings
- 23 Octearnings
- 27–28 OctmacroTheme-wideA US rate decision. Rates set what banks earn on loans against what they pay on deposits, so a surprise moves the whole sector.
- 27 Octearnings
- 28 Octpolicy
Autumn Budget 2026 (UK Budget and OBR forecast) (London)
The OBR page says its forecast is published on 28 October alongside the Budget. Tax and spending decisions, including any bank levy, savings or pension changes, can move UK banks, insurers and asset managers. Written by a model. - 28–29 OctmacroTheme-wideA euro-area rate decision. It sets what Santander, BNP Paribas, ING and the rest of Europe's banks earn on their lending.
- 28 OctpolicyThe Chancellor's Budget sets tax and spending policy and may change levies or taxes on banks, savings, pensions and investment products. UK lenders, insurers and asset managers are most exposed. Written by a model.
- 28 Octearnings
- 29 OctmacroTheme-wide
US GDP (advance estimate, 3rd Quarter 2026)
How fast the US economy is growing, and so how much companies and households borrow, and how many of those loans go bad. - 29 Octearnings
- 30 Octearnings
- Live signalNWG.LNatWest Group plc
- 3 Novearnings
- 4 Novearnings
- 5 NovpolicyUK banks · Insurers
Bank of England Monetary Policy Committee announcement and Monetary Policy Report (London)
The Bank Rate decision and the quarterly Monetary Policy Report shape UK lending margins and gilt yields. UK banks and insurers are the most sensitive. Written by a model. - 5 NovmacroTheme-wide
Bank of England rate decision (with Monetary Policy Report)
A UK rate decision. It sets what Lloyds, NatWest and Barclays earn on mortgages and savings, and what UK insurers earn on their bonds. - 6 NovmacroTheme-wideJobs drive the next US rate move and whether borrowers keep up their repayments, which banks feel in the money they set aside for bad loans.
- 7 Novearnings
- 9 Novearnings
- 10 NovmacroTheme-wideUS inflation sets where rates go next, and with them what banks and insurers earn on the money they hold.
- 12 Novearnings
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