According to current portfolio statistics, a Premium feature of GuruFocus, five financial services stocks in GuruFocus Value Conference speaker David Rolfe (Trades, Portfolio)’s firm that have gained over the past three months include Blackstone Inc. (BX, Financial), PayPal Holdings Inc. (PYPL, Financial), Visa Inc. (V, Financial), S&P Global Inc. (SPGI, Financial) and Progressive Corp. (PGR, Financial).
Bank stocks rally as governments pledge further liquidity support
On Monday, regional banks increased on the back of reports that the federal government is considering expanding programs that provide more liquidity to banks, boosting investor sentiment that that banking crisis is easing. Although shares of First Republic Bank (FRC, Financial) tumbled over 88% over the past three months, shares opened at $16.19, up 31% from last Friday’s close of $12.34.
Rolfe’s firm background
According to GuruFocus’ guru portfolio data, a Premium feature based on 13F equity portfolio filings, gurus with holdings in First Republic Bank include David Rolfe (Trades, Portfolio)’s Wedgewood Partners.
Rolfe's St. Louis-based firm seeks to invest in companies that have a dominant product or service that has little or no substitutes, a sustainable level of growing revenue, a high level of profitability and a shareholder-oriented management team.
GuruFocus is pleased to have Rolfe as a speaker at the Value Conference on May 4 and 5. Seats are limited, so register now to secure your spot!
Guru portfolio overview
As of December 2022, Wedgewood’s $544 million 13F equity portfolio contains 41 stocks. The financial services sector represents the second-largest sector of the portfolio with a weight of 22.81%.
Investors should be aware 13F filings do not give a complete picture of a firm’s holdings as the reports only include its positions in U.S. stocks and American depository receipts, but they can still provide valuable information. Further, the reports only reflect trades and holdings as of the most-recent portfolio filing date, which may or may not be held by the reporting firm today or even when this article was published.
Blackstone
Wedgewood owns 15,250 shares of Blackstone (BX, Financial), giving the position 0.21% equity portfolio weight.
Shares of Blackstone traded around $84.48 on Monday, showing the stock is modestly overvalued based on its price-to-GF Value ratio of 1.13. Despite this, the stock has gained approximately 15.50% over the past three months.
The New York-based alternative asset management company has a GF Score of 66 out of 100 based on a momentum rank of 7 out of 10, a profitability rank of 5 out of 10, a growth rank of 4 out of 10 and a rank of 3 out of 10 for GF Value and financial strength.
Blackstone’s low financial strength rank is driven by several warning signs, which include a cash-to-debt ratio that underperforms approximately 73% of global competitors and a debt-to-equity ratio that underperforms more than 94% of global asset management companies.
Other gurus with holdings in Blackstone include Jim Simons (Trades, Portfolio)’ Renaissance Technologies and Tom Gayner (Trades, Portfolio)’s Markel Gayner Asset Management.
PayPal
The firm owns 310,249 shares of PayPal (PYPL, Financial), giving the position 4.06% equity portfolio weight.
Shares of PayPal traded around $73.30 on Monday, showing the stock is significantly undervalued based on its price-to-GF Value ratio of 0.31. The stock has gained approximately 7.51% over the past three months.
The San Jose, California-based electronic payments company has a GF Score of 91 out of 100 based on a rank of 10 out of 10 for profitability and growth, a financial strength rank of 6 out of 10 and a rank of 4 out of 10 for GF Value and momentum.
PayPal’s high profitability and growth ranks are driven on several positive investing signs, which include a five-star business predictability rank, a return on invested capital that outperforms approximately 89% of global competitors and a three-year revenue growth rate that outperforms approximately 76% of global credit service companies.
Visa
Wedgewood owns 190,076 shares of Visa (V, Financial), giving the position 7.25% equity portfolio weight.
Shares of Visa traded around $221.81 on Monday, showing the stock is modestly undervalued based on its price-to-GF Value ratio of 0.80. The stock has gained approximately 7.95% over the past three months.
The San Francisco-based payment service company has a GF Score of 98 out of 100 based on a rank of 7 out of 10 for financial strength and GF Value and a rank of 10 out of 10 for momentum, profitability and growth.
Visa’s high profitability rank is driven by several positive investing signs, which include a five-star business predictability rank, a high Piotroski F-score of 8 out of 9 and an operating margin that outperforms approximately 88% of global competitors.
Other gurus with holdings in Visa include Frank Sands (Trades, Portfolio)’ Sands Capital Management, Ken Fisher (Trades, Portfolio)’s Fisher Investments and Warren Buffett (Trades, Portfolio)’s Berkshire Hathaway Inc. (BRK.A, Financial)(BRK.B, Financial).
S&P Global
The firm owns 39,034 shares of S&P Global (SPGI, Financial), giving the position 2.40% equity portfolio weight.
Shares of S&P Global traded around $335.75 on Monday, showing the stock is modestly undervalued based on its price-to-GF Value ratio of 0.83. The stock has gained approximately 1.37% over the past three months.
The New York-based capital markets company has a GF Score of 95 out of 100 based on a growth rank of 10 out of 10, a profitability rank of 9 out of 10, a financial strength rank of 6 out of 10 and a rank of 7 out of 10 for momentum and GF Value.
Progressive
The firm owns 141,210 shares of Progressive (PGR, Financial), giving the position 3.36% equity portfolio weight.
Shares of Progressive traded around $141.12 on Monday, showing the stock is modestly overvalued based on its price-to-GF Value ratio of 1.21. The stock has gained approximately 9.33% over the past three months.
The Mayfield Village, Ohio-based auto insurance company has a GF Score of 69 out of 100 based on a rank of 6 out of 10 for growth and momentum, a profitability rank of 7 out of 10, a financial strength rank of 4 out of 10 and a GF Value rank of 1 out of 10.
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