SoFi dominates week's winners, while SLM falls the most: Financials roundup
This week's five top winners in financial stocks featured one consumer finance company, one regional bank, one pet insurer and two asset managers. On the flip side, the five biggest losers included three consumer finance firms, two of which are based in China, one South Korean lender and one P&C insurer.
On a broader note, it was an eventful week for financial stocks as the Federal Reserve lifted its benchmark interest rate by the standard 25-basis-point increment, marking its second consecutive downshift in the size of rate hikes. On top of that, investors digested a barrage of economic data, including an unexpectedly blockbuster jobs report, as well as corporate earnings.
The S&P 500 advanced 1.6% for the week ended Feb. 4, with the Financial Select Sector SPDR ETF (NYSEARCA:XLF) logging a 0.9% rise.
SoFi Technologies (NASDAQ:SOFI), the fintech that issued strong 2023 guidance as its Q4 results exceeded Wall Street expectations, rose the most of any financial stock (with market cap over $2B) during the week, surging 25.6%;
Pacific Premier Bank (NASDAQ:PPBI), up 13.8%, took the second slot;
Pet insurance provider Trupanion (NASDAQ:TRUP) climbed 13.5%;
Wealth manager Focus Financial Partners (NASDAQ:FOCS) reaped a gain of 13.4% after receiving a non-binding proposal from buyout firm Clayton, Dubilier & Rice for $53 a share; and
Janus Henderson Group (NYSE:JHG), an asset manager, perked up 13.4% after its fourth-quarter top and bottom lines each topped consensus estimates.
The financial stocks falling the most were led by consumer banking firm SLM (NASDAQ:SLM), referred to as Sallie Mae. The stock dived 14% during the week that it got downgraded to Equal Weight at Credit Suisse just days after publishing Q4 results;
360 DigitTech (NASDAQ:QFIN), a Chinese-based fintech, slid 10.2%;
Lufax Holdings (NYSE:LU), another fintech located in China, retreated 8%;
South Korea-based bank Woori Financial Group (NYSE:WF), fell 7.8%; and
Property and casualty insurer Chubb (NYSE:CB) stumbled 7.7% after its Q4 earnings trailed the Wall Street consensus.
See why Seeking Alpha contributor Deep tech Insights thinks SoFi (SOFI) shares are undervalued.