Market Mavericks: 3 Financial Stocks Up 50% in 2025 & Still Gaining

December 18, 2025 — 09:33 am EST Written by Debasmita Chatterjee for Zacks-> The Zacks Finance sector comprises a diversified set of players, ranging from banks, investment companies and insurance companies to real estate firms, which offer a varied set of financial services to their clients. With a few days left for 2025 to conclude, insurers are cushioned with strong customer retention, exposure growth and portfolio diversification despite declining global commercial insurance rates. Falling interest rates are fueling real estate, mergers and acquisitions (M&A) and consumer spending, though investment yields may dip. Meanwhile, continued technology investments are helping firms boost efficiency and margins.Catastrophes remain a major concern for insurers due to the high losses incurred though the same usually accelerates the policy renewal rate and prompts insurers to implement rate hikes for seamless claim payments. However, according to the Global Insurance Market Index by Marsh, global insurance rates decreased 4% in the third quarter of 2025. This marked the fifth straight quarter of a decline. The Index noted rate decline was across all regions and most product lines. Casualty insurance was the primary product line facing rate hikes. Nevertheless, exposure growth and strong customer retention rates drive premiums, one of the most significant contributors to an insurer’s top line. The insurers make efforts to diversify their portfolios, minimizing concentration risks. Interest rate cuts commenced this year in September, with a 25-bps reduction each in the Fed’s September, October and December meetings. The central bank hinted at one possible rate cut in 2026. The benefits of interest rate cuts will be reaped by the real estate market. Reduced borrowing costs are expected to ease financial pressure on potential buyers, while also spurring property development as companies gain improved access to affordable credit. Demand for loans and credit cards is also expected to witness a decent rise, thereby benefiting the banking sector.However, investment yields of finance companies having exposure to rate-sensitive products and investments will suffer a blow as a result of the falling interest rates. Despite continued inflationary headwinds, consumer spending continues to remain on an uptick, thanks to strong wage gains and low layoffs. Favorable spending habits of consumers bode well for finance stocks. Preliminary data from Mastercard SpendingPulse indicates that U.S. retail sales, excluding automobiles, rose 4.1% on Black Friday, Nov. 28, compared with the same day in 2024.Finance companies might also continue to pursue increased M&A amid a lower-rate environment, which would motivate companies to use more borrowing to fund M&A activities, helping them conserve cash while continuing to pursue expansion. These moves are crucial for diversifying portfolios, growing customer bases and reinforcingglobal marketreach.Finance industry players continue to invest in technology like blockchain, AI, advanced analytics, telematics, cloud computing and robotic process automation. The advancements are expected to result in the automation of processes and bring down operating expenses, which will continue to benefit margins.

The Zacks Finance sector has gained 16.2% year to date compared with the S&P 500’s 17.8% increase. Image Source: Zacks Investment ResearchGiven the backdrop, we have selected three finance stocks, Customers Bancorp, Inc. CUBI, HCI Group, Inc. HCI and Enova International, Inc. ENVA, that offer a mix of stability and growth potential that investors can leverage heading into 2026. While no investment is without risks, these companies are well-positioned to deliver strong returns. Each of these companies sports either a Zacks Rank #1 (Strong Buy) or carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.Customers Bancorp: Pennsylvania-based Customers Bancorp is supported by a high-tech, high-touch model, delivering personalized banking through a single-point-of-contact system combined with digital solutions like its proprietary B2B instant payments platform, cubiX.

This Zacks Rank #1 company also gains from its branch-light strategy, enabling lower operational costs while maintaining strong deposit generation through targeted commercial and fintech relationships. The loan portfolio remains diversified, with commercial loans comprising 90.1% and consumer loans 9.9%, while maintaining a low non-performing loan ratio of 0.17%.

The Zacks Consensus Estimate for CUBI’s 2026 earnings is pegged at $8.01 per share, which indicates a 5.8% rise from the 2025 estimate. The consensus mark for revenues indicates 14% growth from the 2025 estimate. Customers Bancorp’s earnings surpassed estimates in each of the last four quarters, the average surprise being 16.45%. Year to date, the stock has gained 53.4% compared with the industry’s 5.8% growth. Image Source: Zacks Investment ResearchHCI Group: Headquartered in Florida, HCI makes use of internally developed platforms like SAMS, Harmony, ClaimColony and AtlasViewer. This, in turn, enhances claims processing, optimizes underwriting decisions and ensures regulatory compliance. These systems support strategic policy assumptions, streamline risk management via reinsurance and enable performance benchmarking across subsidiaries such as TypTap and Claddaugh. These operational efficiencies contribute to lower expense ratios, increased customer satisfaction and improved financial performance, including rising net premiums earned and favorable combined ratios for the Zacks Rank #2 company.

The Zacks Consensus Estimate for HCI’s 2026 earnings is pegged at $16.00 per share. It has witnessed two upward estimate revisions in the past 60 days against none in the opposite direction. HCI Group’s earnings surpassed estimates in each of the last four quarters, the average surprise being 61.78%. Year to date, the stock has gained 59.5% compared with the industry’s 9.7% growth. Image Source: Zacks Investment ResearchEnova: Based in Illinois, Enova is a leading online financial services provider that extended around $5.5 billion in credit for the first nine months of 2025 and completed roughly 68.2 million transactions since its inception, utilizing more than 85 terabytes of behavioral data. Operating across 36 U.S. states and Brazil for consumer products, and in 49 states and D.C. for small business financing, this Zacks Rank #2 company leverages advanced analytics—around 90% of which are machine learning-enabled—and a scalable tech platform to offer fast, tailored credit solutions. Its diversified offerings include installment loans and lines of credit, and its strong underwriting and real-time servicing capabilities support rapid funding, often within one business day.

The Zacks Consensus Estimate for ENVA’s 2026 earnings is pegged at $14.12 per share, which indicates a 10.6% rise from the 2025 estimate. The consensus mark for revenues implies 15.8% growth from the 2025 estimate. Enova’s earnings surpassed estimates in each of the last four quarters, the average surprise being 9.63%. Year to date, the stock has gained 70.8% compared with the industry’s 58.9% growth. Image Source: Zacks Investment Research Want to be tipped off early to our 10 top picks for the entirety of 2026? History suggests their performance could be sensational. From 2012 (when our Director of Research Sheraz Mian assumed responsibility for the portfolio) through November, 2025, the Zacks Top 10 Stocks gained +2,530.8%, more than QUADRUPLING the S&P 500’s +570.3%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2026. Don’t miss your chance to get in on these stocks when they’re released on January 5. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportHCI Group, Inc. (HCI) : Free Stock Analysis ReportCustomers Bancorp, Inc (CUBI) : Free Stock Analysis ReportEnova International, Inc. (ENVA) : Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchThe views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.This data feed is not available at this time.