According to the research data analyzed and published by ComprarAcciones.com, the XLF, which represents the financial stocks, tumbled by 21.15% (year-to-date) YTD as of September 30, 2020. In the trailing one-year period, it shed -13.99.
However, some financial stocks have stood out from the pack, offering massive earnings per share (EPS) growth rates.
Financial Sector Gains 12% in Q2 2020, Underperforming S&P 500’s 20%
PNC Financial Services Group is one of the financial stocks with stunning performance, with an EPS growth rate of 191.7% for Q2 2020. During the period, its net income for common shareholders shot up from $1.31 billion to $3.59 billion. This translated to $8.40 per share, up from $2.88 per share.
On the other hand, Ares Management Corp. had an EPS growth rate of 400% according to Investopedia. The fastest growing stock for the period was White Mountains, which had a 476.7% growth rate.
For the S&P 500, Q2 was the best quarter since 1998 and the best second quarter since the index’s inception in 1957. During the period, the index surged by 20.5% and all 11 of its sectors reported positive performance. Consumer discretionary led the pack with 32.9% while IT was second with 30.5%. Financials was the third worst with a 12.2% growth and second worst in terms of YTD declines at -23.6%. During the first 150 days of COVID-19, from March 10 to August 7, 2020, it was also the second worst performing sector with a -19.4 decline. Energy was the worst performer of the period, reporting a 38.5% drop. IT was in the lead with a 24.1% gain.
As of September 2020, IT holds the largest share of the S&P 500, 28.7% and has a YTD return of 23.93% according to Schwab. Financials is in the fifth spot with a 9.6% share and a YTD return of -18.70%.