5 Top-Rated Financial Stocks to Buy

A harsh year for financial stocks has created a few value opportunities. Here are five analyst picks from the beleaguered sector.

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2020 has been a brutal year for financial stocks. A drop in interest rates, higher pandemic-related insurance claims and the steep economic downturn have crushed the S&P 500 financials sector by about 25% so far this year.

Of course, anytime there is carnage, there is also opportunity to find bargains. And analysts recently have targeted a few financial stocks to buy for their apparent value.

Disclaimer

Share prices, dividend yields, price targets, analysts' ratings and other data are courtesy of S&P Capital IQ as of June 26, unless otherwise noted. Stocks are listed by analysts' average recommendation from worst to best.

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Dan Burrows
Senior Investing Writer, Kiplinger.com

Dan Burrows is Kiplinger's senior investing writer, having joined the august publication full time in 2016.

A long-time financial journalist, Dan is a veteran of SmartMoney, MarketWatch, CBS MoneyWatch, InvestorPlace and DailyFinance. He has written for The Wall Street Journal, Bloomberg, Consumer Reports, Senior Executive and Boston magazine, and his stories have appeared in the New York Daily News, the San Jose Mercury News and Investor's Business Daily, among other publications. As a senior writer at AOL's DailyFinance, Dan reported market news from the floor of the New York Stock Exchange and hosted a weekly video segment on equities.

Once upon a time – before his days as a financial reporter and assistant financial editor at legendary fashion trade paper Women's Wear Daily – Dan worked for Spy magazine, scribbled away at Time Inc. and contributed to Maxim magazine back when lad mags were a thing. He's also written for Esquire magazine's Dubious Achievements Awards.

In his current role at Kiplinger, Dan writes about equities, fixed income, currencies, commodities, funds, macroeconomics, demographics, real estate, cost of living indexes and more.

Dan holds a bachelor's degree from Oberlin College and a master's degree from Columbia University.

Disclosure: Dan does not trade stocks or other securities. Rather, he dollar-cost averages into cheap funds and index funds and holds them forever in tax-advantaged accounts.