Investors are becoming bullish on several companies in the financial space because the industry is staging an impressive recovery. As a result, we think it could be astute to bet on financial stocks Discover Financial (DFS) and KeyCorp (NYSE:KEY). Their ratings have recently been upgraded by analysts.The financial sector experienced a difficult travail amid the COVID-19 pandemic as interest rates hovered around zero. While the interest rate environment has not changed, most companies in the financial space are staging impressive comebacks with rising financial activities as the economy gradually reopens. Investors’ renewed interest in the financial space is evidenced by Financial Select Sector SPDR ETF’s (XLF) 23.5% returns over the past three months compared to SPDR S&P 500 ETF Trust’s (SPY) 11.5% gains.
Banking platforms are sharpening their focus on digital platforms to bring deliver more convenience to their consumers. According to ResearchAndMarkets, the digital banking platform market is expected to grow at an 11.2% CAGR between 2021 - 2026.
Favorable analyst reports on financial stocks also indicate their solid growth prospects. Cases in point are Discover Financial Services (NYSE:DFS), and KeyCorp (KEY), which have recently been upgraded by Wall Street analysts. So, we think it could be wise to bet on them now.