3 Financial Stocks to Grab on a Slowdown in 2025 Rate Cuts

Group 1: Interest Rate Environment - The Federal Open Market Committee is not expected to change interest rates at its March meeting due to a robust jobs market and higher-than-expected inflation, with potential cuts not anticipated until the second half of 2025 [1] - Fed Chair Jerome Powell indicated that if the economy remains strong and inflation does not trend toward 2 percent, policy restraint may be maintained for a longer period [1] - High interest rates generally lead to increased profitability for banks and financial institutions due to higher lending rates and improved net interest margins [2][3] Group 2: Financial Sector Performance - The financial sector has performed strongly in 2024, with the S&P 500 Financials Select Sector SPDR rising 19.9% year to date as of February 24 [4] - Financial stocks are popular investments, often issuing dividends and evaluated based on their financial health [5] Group 3: Investment Opportunities - Barclays PLC has an expected earnings growth rate of 8.7% for the current year, with a Zacks Consensus Estimate improvement of 29% over the past 60 days, holding a Zacks Rank 2 and a VGM Score of B [7] - EZCORP, Inc. has an expected earnings growth rate of 16.1% for the current year, with a Zacks Consensus Estimate improvement of 3.2% over the past 60 days, also holding a Zacks Rank 2 but with a VGM Score of A [8] - United Fire Group, Inc. has an expected earnings growth rate of 9.5% for the next year, with a Zacks Consensus Estimate improvement of 10% over the past 60 days, holding a Zacks Rank 1 and a VGM Score of A [9]