Top 10 Finance Stocks To Watch in 2021
2020 saw a year of uncertainty and financial hardship for many households across the globe. It looks to be that the worst fears were avoided and banks are seeing a modest recovery. Low interest rates remain and overhang for the banking sector however. According to experts, the balance sheets and liquidity of financial companies are generally strong and 2021 should see better results.
The coronavirus also accelerated already established trends of moving away from physical cash to contactless and online payment methods. This trend is expected to continue to gain steam into 2021.
Here are the top 10 Finance stocks to watch in 2021:
They do not take any credit risk. They are a transaction company, and with the move away from cash, MA will benefit. However, the valuation compared to their historic multiple is high. They used to trade at a market multiple. Now, it is at 2x the market multiple. It has been rerated. However, thinks it…
Citi Group (C-N)
C vs. MS Likes the banking sector, US banks in general, and both these names. Citi is at its 200-day MA, pretty cheap at below book value of 0.77, a diversified bank. MS price to book is 1.9x, has done well, with more growth so you're paying up for it, more into wealth management and…
Morgan Stanley (MS-N)
MS vs. C Likes the banking sector, US banks in general, and both these names. Citi is at its 200-day MA, pretty cheap at below book value of 0.77, a diversified bank. MS price to book is 1.9x, has done well, with more growth so you're paying up for it, more into wealth management and…
Toronto Dominion (TD-T)
She likes the banks, releasing provisions put on last year. When the banks will be allowed to raise dividends and buyback shares, TD will likely hike its dividend by double digits. TD has the strongest capital position among the big banks. TD trades at a premium valuation to the group. They have a strong retail…
Beneficiary during Covid. Will also benefit from inflation and the recovery trade. Great company. Dividend has grown by 29% in the last 5 years. Good long term story. Need exposure to that space. Structural tailwind of moving from cash to digital, even if interchange fees are cut. If crypto becomes a major competitor, then V…
Bank of Nova Scotia (BNS-T)
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. 5i likes the global and international exposure that BNS offers compared to other big banks. If the global economy continues to grow, they should remain strong. Unlock Premium - Try 5i Free
Intact Financial (IFC-T)
A steady eddy. They just did an acquisition of RSA which expand their leadership in Canada, and gives them a presence in the UK and Ireland. Tailwinds come from their high-quality investment porfolio. They enjoy good pricing in various divisions as we leave Covid behind. He see EPS growth. Trades at 16.3x future PE. (Analysts’…
Royal Bank (RY-T)
He watches small cap financials – see his Top Picks today. However amongst the group of large banks, this would seem to be his number one pick. It seems to be a little more efficient with its capital and is a leading franchise in virtually every business that they operate.
Canadian Imperial Bank of Commerce(CM-T)
Likes it. More Canadian-centric than their peers. The banks are delivering very good ROE, though not sure if they can maintain that. CM pays a dividend over 4%. It's well-managed.
Bank of America (BAC-N)
Trades cheaply to the best-in-class in banks. Likes their capital return program, while their M&A and sales businesses are humming alone. Better than JPM.