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Do you like to invest with a stock's trading momentum? We ran a screen with that idea in mind.

We began by screening the financial sector for stocks with upward momentum, trading above their 20-day, 50-day, and 200-day moving averages.

We then screened for those with strong profitability compared to industry peers, with higher gross, operating, and pretax margins than their industry averages by at least 5% on each margin. This indicates that these companies are taking a greater percentage of their revenues as profits, and they also have stronger control over their cost structures.

For an ‪interactive version of this chart, click on the image below. Analyst ratings sourced from Zacks Investment Research.‬

(click to enlarge)

Tool provided by Kapitall (www.kapitall.com). More investing ideas on Kapitall Wire (wire.kapitall.com).

Do you think these names will continue to rally higher? Use this list as a starting point for your own analysis.

List sorted by distance above 200-day MA.

1. Wilshire Bancorp Inc. (NASDAQ:WIBC): Operates as the holding company for Wilshire State Bank that offers a range of financial products and services. Market cap at $466.88M, most recent closing price at $6.39. The stock is trading 9.64% above its 20-day moving average, 17.72% above its 50-day MA, and 44.72% above its 200-day MA. TTM gross margin at 90.55% vs. industry average at 73.74%. TTM operating margin at 62.93% vs. industry average at 40.18%. TTM pretax margin at 43.29% vs. industry average at 24.15%.

2. NASB Financial Inc. (NASDAQ:NASB): Operates as the bank holding company for North American Savings Bank, F. Market cap at $153.47M, most recent closing price at $19.56. The stock is trading 0.41% above its 20-day moving average, 2.29% above its 50-day MA, and 32.63% above its 200-day MA. TTM gross margin at 78.58% vs. industry average at 65.12%. TTM operating margin at 53.22% vs. industry average at 36.98%. TTM pretax margin at 25.14% vs. industry average at 19.26%.

3. Discover Financial Services (NYSE:DFS): Operates as a credit card issuer and electronic payment services company primarily in the United States. Market cap at $18.99B, most recent closing price at $36.65. The stock is trading 4.40% above its 20-day moving average, 8.46% above its 50-day MA, and 24.26% above its 200-day MA. TTM gross margin at 49.8% vs. industry average at 33.39%. TTM operating margin at 48.75% vs. industry average at 30.87%. TTM pretax margin at 43.% vs. industry average at 24.78%.

4. Alexander's Inc. (NYSE:ALX): Engages in leasing, managing, developing, and redeveloping properties in the greater New York City metropolitan area. Market cap at $2.3B, most recent closing price at $446.55. The stock is trading 3.09% above its 20-day moving average, 5.99% above its 50-day MA, and 13.96% above its 200-day MA. TTM gross margin at 51.42% vs. industry average at 42.66%. TTM operating margin at 51.42% vs. industry average at 40.34%. TTM pretax margin at 32.48% vs. industry average at 21.59%.

5. Home Bancshares, Inc. (Conway, AR) (NASDAQ:HOMB): Operates as a holding company for the Centennial Bank that provides various commercial and retail banking, and related financial products and services to businesses, real estate developers, investors, individuals, and municipalities. Market cap at $856.49M, most recent closing price at $30.45. The stock is trading 0.29% above its 20-day moving average, 2.60% above its 50-day MA, and 13.91% above its 200-day MA. TTM gross margin at 85.98% vs. industry average at 73.74%. TTM operating margin at 56.11% vs. industry average at 40.18%. TTM pretax margin at 41.79% vs. industry average at 24.15%.

6. Community Trust Bancorp Inc. (NASDAQ:CTBI): Operates as the holding company for Community Trust Bank, Inc. Market cap at $542.04M, most recent closing price at $34.45. The stock is trading 1.82% above its 20-day moving average, 4.27% above its 50-day MA, and 13.69% above its 200-day MA. TTM gross margin at 83.26% vs. industry average at 73.74%. TTM operating margin at 51.52% vs. industry average at 40.18%. TTM pretax margin at 32.37% vs. industry average at 24.15%.

7. Provident Financial Services, Inc. (NYSE:PFS): Operates as the holding company for The Provident Bank that provides banking services to individuals, families, and businesses in New Jersey. Market cap at $941.79M, most recent closing price at $15.62. The stock is trading 1.75% above its 20-day moving average, 4.98% above its 50-day MA, and 12.74% above its 200-day MA. TTM gross margin at 76.18% vs. industry average at 64.29%. TTM operating margin at 41.67% vs. industry average at 36.21%. TTM pretax margin at 28.98% vs. industry average at 18.89%.

8. CVB Financial Corp. (NASDAQ:CVBF): Operates as a bank holding company for Citizens Business Bank that provides various retail banking and financial services to small to mid-sized businesses, high net-worth individuals, and professionals in the United States. Market cap at $1.24B, most recent closing price at $11.78. The stock is trading 1.90% above its 20-day moving average, 5.94% above its 50-day MA, and 11.29% above its 200-day MA. TTM gross margin at 89.28% vs. industry average at 73.75%. TTM operating margin at 58.66% vs. industry average at 40.19%. TTM pretax margin at 46.18% vs. industry average at 24.16%.

*Profitability data sourced from Fidelity, all other data sourced from Finviz.

Source: 8 Rallying Financials With Stronger Profitability Than Peers

Additional disclosure: Hello, I removed 2 companies that are real estate investment trusts. The remaining 8 stocks are bank holding companies. Thanks