economy
Financials have the market's deepest bench of near-breakouts
CNBC screened the S&P 500 for stocks trading close to 52-week highs that have not made new highs recently.
TL;DR
- Financial stocks are nearing breakout territory, with many trading within 10% of their 52-week highs.
- This sector, including large banks and insurers, has been largely overlooked compared to AI stocks but is showing strong returns.
- The Invesco KBW Bank ETF (KBWB) recently hit an all-time high, indicating broad strength in the financial sector.
- Improved capital markets activity, including a resurgence in public offerings and dealmaking, is benefiting financial firms.
- Despite a flattening yield curve, bank fundamentals remain resilient, with potential for profit growth and loan expansion.