NNI - 1 Under-the-Radar Financials Stock That Could Beat the Market for Years
Volatility in the market has been elevated throughout 2022, in part on worries that inflation has been stickier than many investors expected. This has led the Federal Reserve to start aggressively raising interest rates to cool off the economy, further contributing to the market's volatility.
Rising interest rates are bad for the majority of stocks because it makes it harder to fund operations through debt financing and typically lowers valuations across the board. The one sector that benefits from higher interest rates is financials . These companies, which include banks, insurance operators, and other lenders, can generally charge higher interest rates on loans when the Federal Reserve raises its benchmark rate, boosting the sector's earnings potential.
Nelnet (NYSE: NNI) is a little-known financial company with a great track record of success since going public in 2004. It's set up to crush the market for many years. Here's why.
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1 Under-the-Radar Financials Stock That Could Beat the Market for Years