10 Best Financial Stocks For 2014

Home builders are among the best performing stocks in the S&P 500 today, with three of them sitting among the top-5.

Scott Dalton

Those would be PulteGroup (PHM), which has gained 4% to $16.00, DR Horton (DHI), which has risen 3.9% to $18.47, and Lennar (LEN), which has advanced 4% to $32.88. Only Garmin (GRMN) has had a better day.

There’s no direct news on the stocks, although Sterne Agee offered up some positive comments on Pulte, which he believes is changing the focus of its business. Analyst Jay McCanless writes:

PHM has a goal of increasing shareholder return, and based on analysis by PHM management and PHM’s Board of Directors, both parties believe a focus on return on invested capital (ROIC) is the appropriate metric for this goal. According to PHM’s research, ROIC-focused companies have generally finished in the top quartile for shareholder return in prior periods. In practice, we believe this strategy will involve changes in land purchase activities as well as changes in the way PHM brings new homes and floorplans to market. We anticipate these changes could have a secondary benefit of reducing the effect of normal cyclicality on PHM’s financial results, but since this is a new strategy for PHM, there is not a historical reference to support our theory.

5 Best Freight Stocks To Buy Right Now: Prudential Bancorp Inc. of Pennsylvania(PBIP)

Prudential Bancorp, Inc. of Pennsylvania operates as the holding company for Prudential Savings Bank that provides various financial products and services in Pennsylvania. Its deposit products include interest-bearing and non-interest-bearing checking, money market, savings, and certificate of deposit accounts. The company?s loan portfolio comprises single-family residential mortgage loans, construction and land development loans, non-residential or commercial real estate mortgage loans, home equity loans and lines of credit, commercial business loans, and consumer loans. The company also provides securities and insurance products, as well as automated teller machine and online banking services. As of September 30, 2010, it operated a main office and six branch offices located in Philadelphia and Delaware Counties. The company was founded in 1886 and is headquartered in Philadelphia, Pennsylvania. Prudential Bancorp, Inc. of Pennsylvania is a subsidiary of Prudential Mutu al Holding Company.

Advisors' Opinion:

• [By Jim Royal]

  I really like to invest in bank demutualizations, and my Special Situations portfolio is back to buy another one: Prudential Bancorp (NASDAQ: PBIP  ) . In October, the bank completed its second-step conversion, making it a fully public institution, but it trades at just 73% of tangible book value. That's tremendously cheap for a profitable, albeit slightly, bank. So I'm stepping up to buy the stock.

10 Best Financial Stocks For 2014: The Bancorp Inc.(TBBK)

The Bancorp, Inc. operates as the holding company for The Bancorp Bank that provides various commercial and retail banking and related products and services to small and mid-size businesses and their principals. The company?s deposit products include checking accounts, savings accounts, health savings accounts, money market accounts, individual retirement accounts, certificates of deposit, and stored value and payroll cards, as well as commercial accounts, such as general commercial checking, small business checking, business savings, and business money market accounts. Its loan portfolio comprises commercial term loans, commercial mortgage loans, commercial lines of credit, 1-4 family construction loans, direct lease financing, and commercial construction, acquisition, and development loans; and consumer loans comprising loans for consumers to finance personal residences, automobiles, home improvements, and for other purposes. The company also provides other banking serv ices, which include private label banking and merchant card processing services; and Internet banking services. It serves Philadelphia, Delaware, Chester, Montgomery, Bucks, and Lehigh counties in Pennsylvania; New Castle county in Delaware; and Mercer, Burlington, Camden, Ocean, and Cape May counties in New Jersey. The company was founded in 1999 and is based in Wilmington, Delaware.

Advisors' Opinion:

• [By Ben Levisohn]

  The Bancorp (TBBK) plunged 30% to $11.37 this week, earning it the honor of the biggest loser in the Russell 2000. The Bancorp said in a filing that the FDIC had demanded it to more to comply with the Bank Secrecy Act.

10 Best Financial Stocks For 2014: Aberdeen Emerging Markets Smaller Company Opportunities Fund Inc (ETF)

Aberdeen Emerging Markets Smaller Company Opportunities Fund Inc (the Fund), formerly Aberdeen Emerging Markets Telecommunications and Infrastructure Fund, Inc., non-diversified management investment company. The Fund�� principal investment objective is to seek long-term capital appreciation. Under normal market conditions, at least 80% of the Fund�� net assets, plus any borrowings for investment purposes, are invested in equity and debt securities of emerging markets telecommunications companies and of infrastructure companies. In addition, under normal market conditions, at least 20% (but not more than 24.9% at the time of purchase) of the Fund�� net assets will be invested in equity and debt securities of companies in the infrastructure industry. Aberdeen Asset Managers Limited (AAML) serves as the Fund�� investment adviser with respect to all investments. Advisors' Opinion:

• [By Mani]

  [Related -SPDR Gold Trust (ETF) (GLD): Is It Time To Buy Gold?]

  UBS strategist Edel Tully expects gold will remain bid so long as Ukraine/Russia tensions remain high, but that needs to come from fresh longs as gross shorts are now much reduced.

10 Best Financial Stocks For 2014: Invesco Mortgage Capital Inc (IVR)

Invesco Mortgage Capital Inc., incorporated in June 2008, is a real estate investment trust (REIT). The Company is primarily focused on investing in, financing and managing residential and commercial mortgage-backed securities and mortgage loans, which it collectively refers to as its target assets. The Company�� target assets consist of residential mortgage-backed securities (RMBS) for which the United States Government agency, such as the Government National Mortgage Association (Ginnie Mae) or a federally chartered corporation, such as the Federal National Mortgage Association (Fannie Mae) or the Federal Home Loan Mortgage Corporation (Freddie Mac) guarantees payments of principal and interest on the securities. It refers to these securities as Agency RMBS. Its Agency RMBS investments include mortgage pass-through securities and may include collateralized mortgage obligations (CMOs). It also invests in RMBS that are not issued or guaranteed by the United States Government agency (non-Agency RMBS), commercial mortgage-backed securities (CMBS) and residential and commercial mortgage loans.

The Company finances its Agency RMBS, non-Agency RMBS and CMBS investments through short-term borrowings structured as repurchase agreements. The Company�� manager is Invesco Advisors Inc. The Company also finances its investments in certain non-Agency RMBS, CMBS and residential and commercial mortgage loans by contributing capital to the Invesco Mortgage Recovery Feeder Fund (Invesco IMRF Fund) that invests in public-private investment funds (PPIF) managed by the Company�� manager. The Company's manager is a wholly owned subsidiary of Invesco Ltd.

Advisors' Opinion:

• [By Monica Wolfe]

  Invesco Mortgage Capital (IVR)

  President and CEO of Invesco Richard King reported a rather notable insider buy on Aug. 5. The CEO purchased 6,500 shares of company stock at an average price of $15.41 per share. This purchase cost King a total of $100,165. Since this buy, the share price has increased a minor 0.13%. King now holds on to at least 56,545 shares of Invesco Mortgage stock.

10 Best Financial Stocks For 2014: First Trust Large Cap Growth AlphaDEX Fund (FTC)

First Trust Large Cap Growth AlphaDEX Fund (the Fund), formerly First Trust Large Cap Growth Opportunities AlphaDEX Fund, is an exchange-traded fund. The investment objective of the Fund is to seek investment results that correspond generally to the price and yield of an equity index called the Defined Large Cap Growth Index (the Index). The Index is an enhanced index created and administered by Standard & Poor��, which employs the AlphaDEX stock selection methodology to select stocks from the S&P 500 Growth Index. Standard & Poor�� constructs the Defined Large Cap Growth Index by ranking the stocks from the S&P 500 Growth Index against all the stocks in the S&P 500 Index on growth factors including 3, 6 and 12-month price appreciation, sales to price and one year sales growth, and separately on value factors, including book value to price, cash flow to price and return on assets. First Trust Advisors L.P. is the adviser of the Fund. Advisors' Opinion:

• [By reports.droy]

  Dollar General�� management still remains optimistic as they have remarked that the ��nti-trust issues��are manageable. Company sources have confirmed that on September 2, the management has sweetened the proposal and send it to the Board of Directors of Family Dollar Stores. Under the terms of the revised proposal, Dollar General is ready to increase the bid to $80 per share in an all-cash deal. To further pacify the Family Dollar top brass, Dollar General�� management has agreed to divest nearly 1500 outlets if ordered by the Federal Trade Commission (FTC), from the 700 store divestiture commitment given during the initial bid.

10 Best Financial Stocks For 2014: Apollo Global Management LLC(APO)

Apollo Global Management, LLC is a publicly owned investment manager. The firm primarily provides its services to pension and endowment funds, institutional investors, individual investors, pooled investment vehicles, and corporations. It manages client focused portfolios, hedge funds, real estate funds, and private equity funds for its clients. The firm invests in the fixed income and alternative investment markets across the globe. Its alternative investments include investment in private equity and real estate markets. The firm's private equity investments include traditional buyouts, distressed buyouts and debt investments, corporate partner buyouts, distressed asset, turnaround, corporate restructuring, special situation, acquisition, and industry consolidation transactions. Its fixed income investments include distressed debt, senior bank loans, and value oriented fixed income securities. The firm seeks to invest in chemicals; commodities; consumer and retail; oil an d gas, metals, mining, agriculture, commodities, distribution and transportation; financial and business services; manufacturing and industrial; media distribution, cable, entertainment, and leisure; energy, packaging and materials; and satellite and wireless. It seeks to invest in companies based in across North America with a focus on United States, and Europe. The firm employs a combination of contrarian, value, and distressed strategies to make its investments. It conducts an in-house research to create its investment portfolio. The firm seeks to acquire minority positions in its portfolio companies. Apollo Global Management, LLC was founded in 1990 and is headquartered in New York, New York with nine additional offices in North America, Europe, and Asia.

Advisors' Opinion:

• [By Rich Smith]

  Late last year, the financial news and data publisher announced the sale of its education unit -- McGraw-Hill Education (MHE) -- to private equity firm Apollo Global Management (NYSE: APO  ) in a $2.4 billion deal. The change of control officially took effect only a week ago, and within just a few days, MHE ran into its first big PR problem as an Apollo Global subsidiary.

• [By Nick Taborek]

  Pitney Bowes (PBI), rose 13 percent to $16.60, the most in the S&P 500. The provider of postal meters and other equipment agreed to sell its management-services unit to Apollo Global Management LLC (APO) for about $400 million in cash.

10 Best Financial Stocks For 2014: EMC Insurance Group Inc. (EMCI)

EMC Insurance Group Inc., an insurance holding company, engages in property and casualty insurance, and reinsurance activities. It operates in two segments, Property and Casualty Insurance, and Reinsurance. The Property and Casualty Insurance segment writes commercial and personal lines of insurance with a focus on medium-sized commercial accounts. Its commercial lines of insurance products comprise automobile, property, workers� compensation, and liability, as well as other products that provide protection against burglary and theft loss, aircraft, marine, and other types of losses; and personal lines of insurance products include automobile, property, and liability. The Reinsurance segment provides reinsurance for other insurers and reinsurers. The company serves small to medium-sized businesses, institutions, and individual consumers. EMC Insurance Group Inc. sells its products through independent insurance agents. The company was founded in 1974 and is headquartered i n Des Moines, Iowa. EMC Insurance Group Inc. is a subsidiary of Employers Mutual Casualty Company.

Advisors' Opinion:

• [By Caroline Bennett]

  EMC Insurance (NASDAQ: EMCI  ) this week declared plans to keep its quarterly dividend payout steady at $0.21 per share of common stock.