The financial sector has lagged the overall market in 2015, and the Select Sector Financial Slct Str SPDR Fd XLF 0.95% has gained 0.2 percent versus the S&P 500’s 1.5 percent gain year-to-date. For the first time in two months, Credit Suisse analysts have updated their top financial stock picks in 10 different subsectors, and the firm has made five changes to its top picks from October.
Here’s a full list of the names they chose.
Top 10 Financial Stock Picks
1. Asset Managers: Affiliated Managers Group, Inc. AMG 1.45%
Analyst Craig Siegenthaler likes the company’s “robust” deal pipeline and expects buybacks will continue to support share price.
2. Large-Cap Banks: JPMorgan Chase & Co. JPM 0.52%
Analyst Susan Katzke says that JPMorgan has “proven the value of a scaled, integrated financial services entity.”
3. Mid-Cap Banks: BB&T Corporation BBT 1.74%
Analyst Jill Shea sees continuing fundamental outperformance from BB&T and praises the company’s “willingness to optimize its balance sheet and capital deployment.” This month, BB&T has replaced KeyCorp KEY 1.5% as a top pick.
4. Brokers, Exchanges & Alternative Asset Managers: Goldman Sachs Group Inc GS 1.04%
Analyst Christian Bolu likes Goldman’s solid balance sheet and views the company as “a best-in-class brokerage franchise with solid market positioning across a myriad of client businesses.” Goldman has replaced Charles Schwab Corp SCHW 2.45% as the top pick in the space.
5. Insurance-FG & Life: Metlife Inc MET 1.3%
Analyst Tom Gallagher believes the stock is currently undervalued “given improved visibility on capital returns and continuation of organic growth in international markets.”
6. Insurance-P&C: ACE Limited ACE 0.91%
Analyst Ryan Tunis believes…
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