The financial sector has faced significant challenges in recent years due to inflation, rising interest rates, and geopolitical tensions. However, with the Federal Reserve's interest rate cuts and a stabilizing market, now is an opportune time to consider investing in robust financial stocks. This article explores three resilient companies—S&P Global, American Express, and Nu Holdings—that offer promising long-term growth potential.

S&P Global: A Data-Driven Powerhouse

S&P Global stands out as a leader in providing financial data, credit ratings, and analytics services to major corporations and institutions worldwide. Despite facing temporary setbacks from rising interest rates, the company has demonstrated steady growth and innovation, particularly through its integration of artificial intelligence (AI) tools. Investors can anticipate strong future performance as interest rates decline and more organizations adopt AI-driven solutions for efficient decision-making.

From 2019 to 2024, S&P Global achieved a compound annual growth rate (CAGR) of 16% in revenue and 8% in earnings per share (EPS). Although profits dipped slightly in 2022 and 2023 due to higher interest rates and business divestitures, analysts predict robust growth from 2024 to 2027, with revenue and EPS expected to grow at CAGRs of 7% and 14%, respectively. While the stock may seem pricey at 38 times this year’s earnings, its solid business model, competitive advantages, and predictable growth justify its valuation.

American Express: A Unique Banking Model

American Express operates under a distinct banking model that differentiates it from competitors like Visa and Mastercard. By issuing its own cards and processing payments, the company targets higher-income, low-risk customers, which provides resilience against economic downturns. Its diversified revenue streams and resistance to interest rate fluctuations make it a stable investment choice.

Over the past few years, American Express has maintained consistent growth despite global economic uncertainties. From 2019 to 2024, revenue and EPS grew at CAGRs of 10% and 12%, respectively. Looking ahead, analysts forecast revenue and EPS growth of 8% and 12% annually from 2024 to 2027. Trading at 19 times this year’s earnings, American Express remains attractively priced and poised for long-term success.

Nu Holdings: Latin America's Digital Banking Leader

Nu Holdings, headquartered in Brazil, has rapidly expanded its customer base and services across Latin America, becoming the largest digital-only direct bank in the region. The company's impressive growth trajectory includes tripling its customer base and significantly increasing its activity rate. By offering a wide range of financial products and leveraging AI technology, Nu has established itself as a dominant player in the unbanked population of Latin America.

Between 2021 and 2024, Nu’s revenue surged at a CAGR of 89%, turning profitable in 2023 and nearly doubling its net income in 2024. Analysts expect continued strong performance, with revenue and EPS growing at CAGRs of 29% and 38%, respectively, from 2024 to 2026. At just 21 times this year’s earnings, Nu offers investors a compelling opportunity in a rapidly expanding market.