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.
JPM's Indicator enters downward trend
The Aroon Indicator for JPM entered a downward trend on March 10, 2026. Tickeron's A.I.dvisor identified a pattern where the AroonDown red line was above 70 while the AroonUp green line was below 30 for three straight days. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options. A.I.dvisor looked at 119 similar instances where the Aroon Indicator formed such a pattern. In of the 119 cases the stock moved lower. This puts the odds of a downward move at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on February 23, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on JPM as a result. In of 82 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for JPM turned negative on February 13, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 48 similar instances when the indicator turned negative. In of the 48 cases the stock turned lower in the days that followed. This puts the odds of success at .
JPM moved below its 50-day moving average on February 11, 2026 date and that indicates a change from an upward trend to a downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where JPM declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
JPM broke above its upper Bollinger Band on February 06, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Bullish Trend Analysis
The Stochastic Oscillator demonstrated that the ticker has stayed in the oversold zone for 2 days, which means it's wise to expect a price bounce in the near future.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where JPM advanced for three days, in of 360 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Tickeron SMR rating for this company is (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 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 28, placing this stock better than average.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding 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 (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 Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly 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 (2.284) is slightly higher than the industry average of (1.409). P/E Ratio (14.482) is within average values for comparable stocks, (13.010). Projected Growth (PEG Ratio) (1.632) is also within normal values, averaging (4.120). JPM has a moderately low Dividend Yield (0.020) as compared to the industry average of (0.040). P/S Ratio (4.435) is also within normal values, averaging (3.620).
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a major bank
Industry MajorBanks
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