2023-03-17 06:45:00 ET
It has been a volatile week in the markets, particularly for bank stocks , following the collapse of Silicon Valley Bank (a subsidiary of SVB Financial ) and Signature Bank . For many investors, it brings into focus the importance of finding stable companies with a history of long-term outperformance in any market.
The past five years have certainly been extremely volatile, and when you look back, only a relative few financial stocks have been able to maintain at least 15% annual earnings-per-share (EPS) growth over that period. Three of the largest and most stable are Visa (NYSE: V) , Mastercard (NYSE: MA) , and MSCI (NYSE: MSCI) . Can these top performers continue to increase profits over the next five years?
The volatility started in 2018, when the S&P 500 dropped 6.2% for the year amid the China trade war, among other factors. In 2020, the pandemic hit and caused stocks to plunge. The short bear market was followed by a two-year bull run led by technology stocks, with prices soaring to the highest level since the run-up to the dot-com crash of the early 2000s. Last year, valuations contracted and we had the worst retreat since the Great Recession, with the S&P 500 falling 19% and the Nasdaq Composite losing one-third of its value.
For further details see:
3 Financial Stocks That Can Keep Growing Profits