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JP Morgan (JPM)

For market contrarians, the best time to buy into a sector is when the rest of the market is betting against it. One sector betting against is the financial sector. Over the past twelve months, financials have greatly underperformed the S&P, and investors are more than wary about the sector as a whole. In fact, the past year has been so bad, financials have underperformed the S&P by over 20%. Given their recent performance, it is understandable why the crowd is betting against them, but for contrarians, now could be the perfect time to jump in. Sometimes, the crowd is correct in its bearish sentiment, but when a sector is about to turn, it is almost always on the wrong side of the market. Financials could be about to break out, and let’s take a look at our four favorite stocks in the sector.

Michael Fowlkes

Michael Fowlkes is a financial writer who has been with the Fresh Brewed Media family since 2004. Over the course of his tenure with Fresh Brewed Media, he has worn many hats, including portfolio manager, options analyst, and writer. Michael received his undergraduate degree from Virginia Tech in Accounting and got his start in finance working as a stock trader for six years at Chase Investment Counsel in Charlottesville, Va.