Below are the top-rated financial stocks according to Validea's Patient Investor model, which is based on Warren Buffett's publicly-disclosed strategy: This strategy looks for companies with long-term, predictable profitability and low debt that trade at reasonable valuations.
LPL Financial Holdings (LPLA) is a large-cap growth stock in the Investment Services industry. Our Warren Buffett-based strategy has a rating of 100% based on the company's underlying fundamentals and the stock's valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock while a score above 90% typically indicates strong interest.
Company Overview: LPL Financial Holdings Inc. is an independent broker-dealer and investment advisory firm. The company provides an integrated platform of brokerage and investment advisory services to independent financial advisors and corporate financial advisors (collectively, Advisers) in the United States. Through its comprehensive platform, it offers integrated technology solutions, brokerage and advisory platforms, settlement, compliance, business and planning and advisory services, consulting practice management programs and training, and in-house research. Through its custody and settlement platform, using both proprietary and third-party technology, the company provides access to a diverse range of financial products and services, enabling Advisers to provide personalized financial advice and brokerage services to individual investors. The company's products include alternative investments, annuities, exchange-traded funds, insurance-based products, mutual funds, and retirement plan products.
The following table summarizes whether the stock meets each of the strategy's tests: Not all criteria in the table below receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
Earnings predictability: Pass Return on equity: Pass Return on assets: Pass Free cash flow: Pass Use of retained earnings: Pass Share buybacks: Pass Initial rate of return: Pass Expected earnings: Pass
Detailed Analysis of LPL FINANCIAL HOLDINGS INC.
LPLA Group Analysis
LPLA Fundamental Analysis
SEI INVESTMENTS CO (SEIC) is a mid-cap growth stock in the Investment Services industry. Our Warren Buffett-based strategy has a rating of 79% based on the company's underlying fundamentals and the stock's valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Overview: SEI Investments Company provides technology and investment solutions that connect the financial services industry. Its segments include private banks, investment advisors, institutional investors, investment managers, and start-up investments. The Private Bank segment provides an investment processing and investment administration outsourcing platform to banks and trust institutions, independent wealth advisors, and financial advisors worldwide. The Investment Advisor segment provides investment management and investment processing platforms to high net worth investors through a network of independent registered investment advisors, financial planners, and other investment professionals in the United States. The Institutional Investors segment provides chief investment officer outsourcing solutions, including investment management and administration outsourcing platforms, to retirement plan sponsors, health systems, higher education, and other non-profit organizations worldwide.
The following table summarizes whether the stock meets each of the strategy's tests: Not all criteria in the table below receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
Earnings predictability: Pass Return on equity: Pass Return on assets: Pass Free cash flow: Pass Use of retained earnings: Fail Share buybacks: Pass Initial rate of return: Pass Expected earnings: Pass
Detailed Analysis of SEI INVESTMENTS CO
SEIC Group Analysis
SEIC Fundamental Analysis
1ST SOURCE CORP (SRCE) is a small-cap value stock in the Money Center Banks industry. Our Warren Buffett-based strategy rates it 65% based on the company's underlying fundamentals and the stock's valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Overview: 1st Source Corporation is a bank holding company. Through its subsidiaries, the company offers a variety of financial products and services. Its bank subsidiary, 1st Source Bank (Bank), provides commercial and consumer banking services, trust and asset management services, and insurance to individual and corporate clients through 78 banking centers in 18 counties in Indiana and Michigan and Sarasota County, Florida. The bank offers specialty financing services for construction equipment, new and used private and cargo aircraft, and fleets of various vehicle types. It also offers a variety of trust, investment, agency, and custodial services to individual, estate and trust, corporate, and nonprofit clients. Its insurance agency subsidiary, 1st Source Insurance, Inc., offers property and casualty insurance, individual and group health insurance, and life insurance to individuals and corporations. It also owns and manages investment securities available for sale.
The following table summarizes whether the stock meets each of the strategy's tests: Not all criteria in the table below receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
Earnings predictability: Pass Return on equity: Fail Return on assets: Pass Free cash flow: Pass Use of retained earnings: Pass Share buybacks: Pass Initial rate of return: Pass Expected earnings: Fail
Detailed Analysis of 1ST SOURCE CORP
SRCE Group Analysis
SRCE Fundamental Analysis
Warren Buffett's Portfolio
Warren Buffett's Favorite Stocks
About Warren Buffett: Warren Buffett is considered by many to be the greatest investor of all time. As chairman of Berkshire Hathaway, Buffett has consistently outperformed the S&P 500 for decades, becoming one of the richest people in the world in the process. (Forbes magazine puts his net worth at $37 billion.) Despite his wealth, Buffett is known to live a modest lifestyle by billionaire standards. His primary residence is a gray stucco house in Nebraska that he purchased nearly 50 years ago for $31,500, according to Forbes, and he is known for his down-home Midwestern demeanor and penchant for simple pleasures like a Cherry Coke, a good burger, and a good book.
About Validea: Validea is an investment research service that follows strategies published by investing legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long term, including Warren Buffett, Benjamin Graham, Peter Lynch, and Martin Zweig. To learn more about Validea, click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
