Financial Stocks to Watch in a Rising Rate Environment
Financial stocks have historically been solid bets in rising-rate environments. Increases in the yields of the 10 and 30-year Treasuries over the past week have tripped the alarm for many investors, who see this and inflation indicators as good reasons to bet on a recession. Tech (XLK, VGT, QQQ) and other sectors are tanking along with the major indices (DIA, SPY) while international tensions mount, leaving investors wondering where they can turn.
Many investors are being encouraged to buy the dip, regardless of the sector. While this strategy may work in the long term, it may be more prudent to find strategies that have worked in historically similar markets. Stocks such as J.P. Morgan (JPM), Goldman Sachs (GS), and Visa (V) are examples of companies which have performed well during months of rising-rates in the past.
Currently regional banks are surging, with the SPDR S&P Regional Banking ETF (KRE) serving as a catch-all, and individual banks such as SVB Financial Group (SIVB) attracting investors in recent days. Bank of America (BAC) has also done well, although a high level of implied volatility in the options market surrounding the stock has some wondering what direction it will take.
Banks are likely, based on historical trends, to be more profitable during rising rate environments due to their ability to create favorable margins in the interest rates they offer banking customers on loans and savings accounts. Insurance companies (PRU, ALL, BRK.A) also do well with rising rates, historically speaking, since they sit on substantial cash reserves that must earn returns from predominantly low-risk instruments. However, this is not necessarily the whole picture, and things do change.
Analyst Dick Bove points out that the profiles, exposures, and competition of banks have been changing over time, and the old paradigm may be shifting. Citigroup (C) is one bank that he singles out to serve as an example. With the majority of its loan revenue coming from overseas, it has a relatively high exposure to the cost of money that will not be fully offset by the rates they can earn on loan interest. Bove feels more secure with tech-based financial institutions such as Comerica, Silicon Valley Bank, and PacWest Bancorp.
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Serhii Bondarenko is an AI-focused trading strategist and financial markets analyst specializing in the development and application of AI trading bots and autonomous trading agents. His work combines technical analysis, fundamental analysis, and quantitative research to identify market patterns, forecast price movements, and analyze liquidity, volatility, and correlations across global stock markets. Serhii actively publishes market insights, forecasts, and trading frameworks on platforms such as Investing.com and Finextra, with a strong focus on AI-driven decision-making and next-generation algorithmic trading. His research aims to bridge the gap between traditional trading methodologies and advanced artificial intelligence, helping traders and investors navigate complex and rapidly evolving market conditions.
JPM in -1.71% downward trend, sliding for three consecutive days on September 30, 2026
Moving lower for three straight days is viewed as a bearish sign. Keep an eye on this stock for future declines. Considering data from situations where JPM declined for three days, in 155 of 263 cases, the price declined further within the following month. The odds of a continued downward trend are 59%.
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on September 14, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on JPM as a result. In 30 of 81 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 37%.
JPM moved below its 50-day moving average on September 16, 2026 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for JPM crossed bearishly below the 50-day moving average on September 18, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 6 of 14 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 43%.
The Aroon Indicator for JPM entered a downward trend on October 06, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Bullish Trend Analysis
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where JPM's RSI Oscillator exited the oversold zone, 20 of 28 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 71%.
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 9 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a +1.64% 3-day Advance, the price is estimated to grow further. Considering data from situations where JPM advanced for three days, in 217 of 365 cases, the price rose further within the following month. The odds of a continued upward trend are 59%.
JPM may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Fundamental Analysis (Ratings)
The Tickeron SMR rating for this company is 1 (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is 10 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 21, placing this stock better than average.
The Tickeron PE Growth Rating for this company is 52 (best 1 - 100 worst), pointing to average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is 54 (best 1 - 100 worst), indicating fairly steady price growth. JPM’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of 65 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Valuation Rating of 87 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: JPM's P/B Ratio (2.530) is slightly higher than the industry average of (1.866). P/E Ratio (14.421) is within average values for comparable stocks, (14.888). Projected Growth (PEG Ratio) (1.562) is also within normal values, averaging (2.139). JPM has a moderately low Dividend Yield (0.018) as compared to the industry average of (0.026). P/S Ratio (4.888) is also within normal values, averaging (3.867).
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a major bank
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