There hasn’t been a time in recent memory in which so much of the market’s narrative (and, frankly, the market’s performance) has been driven by so few companies.
The Magnificent Seven stocks collectively make up more than one-third of the S&P 500 (roughly triple their relative share even 10 years ago), and they and their AI brethren have dominated the headlines as well.
In fact, by some estimates, the U.S. itself is dependent on these companies for growth, as per Fortune, without AI and data center spending, U.S. GDP would have grown by only a scant 0.1% in the first half of the year.
Sure, we’ve previously had the FAANG stocks and their iterations (MANGO, MAMAA, etc.), but those companies were just a handful of profitable investments; they didn’t suck the air out of the room the way the Magnificent Seven have.
But the good news is that there are still companies that are thriving this year outside of the Mag. 7, even if the financial media would have you believe otherwise.
So today, we’re going to take a look at three financial stocks that are booming in 2025. All three have more than doubled this calendar year, and none of them is solely reliant on progress with AI.
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3 Financial Stocks That Are Thriving Now
Robinhood Markets (HOOD)
Robinhood is a U.S.-based financial technology company that operates a fully digital brokerage and investing platform offering commission-free trading in stocks, ETFs, options, and cryptocurrencies, as well as cash management and robo-advisory services.
The company doesn’t have physical branches; instead, it serves its customers entirely through its mobile app and website. As of its third-quarter earnings report, Robinhood boasts 26.8 million funded customers and $333 billion in total platform assets, which is a mix of assets under custody and some managed assets.
Of note, the company also has 3.7 million customers paying a nominal monthly fee ($5) for Robinhood Gold, which offers preferred lending rates, higher yields on cash, and other benefits.
By all accounts, business is booming, and the share price reflects that, having risen 233% in 2025 alone.
The company is highly dependent on retail traders and crypto, and one of its newest offerings is the Prediction Market, which allows account holders to buy (unregulated) “contracts” on anything from the outcome of NFL, NBA, and college sports games to elections, the length of the government shutdown, and more.
All that is to say that Robinhood’s share price performance is highly dependent on the ongoing bull market. With a PE of 55, the valuation is double that of (less exciting) retail brokerage peer Charles Schwab (SCHW), which is trading at a more reasonable 22.5x earnings.
With shares having topped out in October with some of the other frothy areas of the market, it’s likely that they’ll need another round of exuberance to get back in gear.
Deutsche Bank (DB)
Deutsche Bank is a leading global financial institution headquartered in Frankfurt, Germany, providing corporate, investment, and private banking services as well as asset management through its DWS subsidiary.
The bank operates through four main divisions: Corporate Bank, Investment Bank, Private Bank, and Asset Management. The company currently has $1.65 trillion in assets under custody (less than half its 2008 peak), with Deutsche Bank’s asset management arm, DWS Group, making up the bulk of that figure. The broader group continues to serve over 20 million clients worldwide, supported by 1,196 branches as part of its international network.
Shares have risen by 119% so far this year (and offer a 1.9% dividend) and are trading at 10-year highs.
Should assets continue to flow out of the U.S. (what Cabot’s Carl Delfeld calls the “Great Rebalancing”), there’s a lot to like about DB, even after the stock has doubled.
Banco Santander, S.A. (SAN)
Santander is a global retail and commercial banking group headquartered in Madrid, Spain, with operations spanning Europe, North and South America, and increasingly digital financial services. The bank serves around 178 million customers through a network of more than 8,000 branches worldwide, maintaining one of the largest retail footprints among international banks.
As of September 2025, Santander reported $2.15 trillion in total assets, including more than $500 billion across its wealth management, insurance, and asset management businesses—a record level for the group, reflecting its growing focus on fee-based financial services alongside traditional banking operations.
Shares have been on a tear this year (as you can see in the chart), up 141% in 2025 alone.
The company also pays a decent (2.4%) dividend, and trades at a modestly discounted PE of just 10 times trailing earnings (DB trades at 13x).
Of these three financial stocks, I prefer the two (mostly) European banks over the high-flying Robinhood, and the combination of outperformance and dividend yield is enough to give SAN the edge for me.
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