The year 2020 has not exactly been a great one for financial stocks. Despite the overall market hitting record highs this fall, bank stocks are still lagging in terms of price recovery. JPMorgan Chase (NYSE: JPM) and Bank of America (NYSE: BAC) are down roughly 10% and 14.3% respectively in 2020, but other financial stocks that aren’t banks are doing better.
For instance, financial technology stocks have had a great 2020, as companies like PayPal (NASDAQ: PYPL) (price up 121%) and Square (NYSE: SQ) (price up 270%) benefitted from changing trends in how consumers make transactions.
Visa (NYSE: V) is a bit of a hybrid that offers both traditional financial services and fintech services, leading to its stock gains falling somewhere in the middle — up about 13.3% so far in 2020. Visa rewarded investors with strong gains prior to the onset of COVID-19, and like with other pandemic-beaten stocks, 2021 looks to bring improved returns. In fact, Visa has been making several changes to position itself for high growth.