Financial stocks are the best-performing group in 2024 and, although they are widely thought to have more room to run as a sector, a subset of them are in an even more favorable position. is The S&P 500 financials sector is up 36% so far this year, outperforming both the communications services and information technology sectors, which house all the high-flying megacap technology stocks. In particular, investors expect financial firms to benefit following President-elect Donald Trump’s election victory and promises to deregulate businesses. This month alone, the group gained 10%, double the return of the S&P 500. “They’ve got good momentum, the chances of good earnings growth under the Trump administration, maybe less stringent regulations, the chances of banks being forced to adopt Basel III,” CFRA Research’s chief investment strategist. “We’re overweight financials, and we look forward to holding that for some time,” Sam Stovall said, referring to global capital needs. XLF YTD in 2024 Mountain Financial Select Sector SPDR Fund (XLF). The technical setup for all financial stocks — which have hit new highs and are in a bullish market — is also encouraging, but the backdrop could particularly benefit rising financials. Technology companies, according to Wolf Research technical analyst Rob Ginsburg. Ginsberg said fintech stocks will outperform the entire financial sector, as represented by the Financial Select Sector SPDR Fund ( XLF ), as well as bank stocks in the SPDR S&P Bank ETF ( KBE ), which each own 10 May increase to percent. 15% over the next 12 months. “If this bull market continues, the growth in these fintech names could be 3-4x what we see in overall XLF,” Ginsberg said. Block is an example of a fintech name that could break, technical analysts said. The stock was last trading around $90, but could “easily” rise more than 75 percent to $160 a share by the end of 2025, he said. According to the CNBC analyst consensus tool, the stock is a consensus buy on the street. PayPal could jump nearly 40% to $87 to $125, where it was trading recently. Toast is another name Ginsburg is bullish on. Certainly, financial stocks could be punished first if the broader market corrects, Ginsberg said. But despite sentiment at elevated levels, he expects the fundamentals of the bull market to remain intact.