The sector offers the least expensive valuation of any sector in the S&P 500, trading at a mere 13.5 price/earnings multiple. Financials also benefit from positive loan growth, which should occur this year.
In addition, it is the sector that has the most sensitivity to higher interest rates. While multiples have increased for most of these stocks since the election, many are trading at a substantial discount to the market. Deregulation could create potential earnings per share upside for the entire sector.
Here are my results...
