XLF - Insurers lead the pack in the week's best-performing financial stocks

2023-08-05 10:38:00 ET

The financial stocks that jumped the most in the past week mostly scored substantial beats on their latest quarterly earnings, with insurance-focused stocks leading the pack.

For the week, the Financial Select Sector SPDR ETF ( XLF ) ticked down 0.1% , outperforming the S&P 500's 2.3% decline .

Erie, PA-based insurer Erie Indemnity ( NASDAQ: ERIE ) surged 25% during the week ended Aug. 4, 2023; its Q2 EPS and revenue both beat consensus estimates by impressive margins as management fee revenue rose 16% Y/Y.

NMI Holdings ( NASDAQ: NMIH ) climbed 10% after Q2 results came in stronger than expected and the mortgage insurance company announced an additional $200M share repurchase authorization.

Genworth Financial ( NYSE: GNW ), also an insurer, rose 8.0% after its board authorized the repurchase of an additional $350M of stock . The company postponed its Q2 results to give it more time to complete accounting for long-term care insurance legal settlements.

StoneX Group ( NASDAQ: SNEX ), a financial service network, advanced 7.5% after posting fiscal Q3 GAAP EPS that beat the consensus estimate by $0.81 as operating revenue jumped 47% Y/Y.

Hercules Capital ( NYSE: HTGC ), a provider of specialty financing focusing on venture and growth companies, increased 7.0% during the week, after its Q2 net investment income of $75.7M jumped 89% Y/Y.

Earnings and guidance also fueled some of the biggest drops in the financial sector.

PayPal Holdings ( NASDAQ: PYPL ) swooned 15% during the week after it logged in-line Q2 earnings and its number of active accounts dipped for a second quarter.

While MarketAxess's ( NASDAQ: MKTX ) Q2 earnings turned in slight beats , the results and unchanged guidance apparently disappointed. MKTX stock slid 10% for the week;

Brazilian bank Banco Bradesco ( NYSE: BBD ) dropped 10% after Q2 net income fell to R$4.07B from R$7.33B in the year-ago quarter.

While Credit Acceptance ( NASDAQ: CACC ) Q2 earnings easily beat the consensus estimate, the auto lender reported a decrease in forecasted collection rates , which decreased forecasted net cash flows from its loan portfolio; CACC shares fell 9.1%;

T. Rowe Price ( NASDAQ: TROW ) shares declined 8.9% .

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