3 US Financial Stocks That Could Benefit If Inflation Stays Sticky

Inflation is back in the spotlight as the US braces for fresh CPI numbers, renewed worries about sticky prices, and a market trying to price how long higher borrowing costs might last. That mix can reshuffle the pecking order in large financial stocks, affecting everything from loan economics to deposit competition. This article walks through 3 US large-cap financials that could be particularly exposed to this latest inflation story.

The stocks highlighted below are only a starter set, and the full screen surfaced 30 more large US financial companies with equally compelling rate and credit stories that are not covered here.

To identify and analyze the highest conviction ideas that fit your own view on inflation and the Fed path, head straight to the US Large-Cap Financials (Banks and Diversified Financial Services) screener.

Apollo Global Management (APO)

Apollo Global Management gives this screener exposure to large-scale credit and alternative assets that react directly to moves in interest rates and inflation expectations. Its mix of fee income and retirement capital keeps it firmly in the diversified financials camp rather than traditional banking.

Apollo Global Management runs a global alternatives platform spanning private equity, credit, real assets and retirement solutions, with most of its US$33.8b in segment revenue coming from Retirement Services (US$25.9b), alongside Asset Management (US$6.5b) and Principal Investing (US$1.4b). The group carries a market value near US$70.4b.

"Apollo's inclusion in the S&P 500 is expected to broaden its shareholder base, leading to potential growth in public market exposure and thus possibly driving future revenue increases."

What happens to that outlook will hinge on one unresolved pressure inside its rate-sensitive credit and retirement engine.

That pressure point is exactly what the full narrative for Apollo Global Management unpacks, mapping how Apollo Global Management could turn rate volatility into accelerating fee and retirement earnings power.

ServisFirst Bancshares (SFBS)

ServisFirst Bancshares sits right in the middle of this screener’s rate story, because its regional commercial banking model lives off net interest income, loan demand, and deposit behavior as Fed policy and inflation reset the economics of everyday lending.

ServisFirst Bancshares runs a regional US bank focused on business and personal financial services, generating about US$585 million from that segment in the United States, and carries a market value of roughly US$4.2b.

"Expansion of commercial lending teams and ongoing hiring in key Southeastern markets positions the company to capitalize on robust population and business growth in the Sun Belt, supporting above-average organic loan and deposit growth, which is likely to drive top-line revenue and long-term earnings growth."

What really moves the needle for ServisFirst Bancshares is how one unseen pressure in its funding costs shapes future margins and earnings power.

That funding pressure is exactly what the full narrative for ServisFirst Bancshares unpacks, tracing how ServisFirst Bancshares could turn higher deposit costs into accelerating earnings power if conditions break its way.

Jackson Financial (JXN)

Jackson Financial fits this large cap financials theme as an annuity-heavy business whose spread income and fee streams react to interest-rate and credit conditions that shape retirement demand.

Jackson Financial focuses on US retirement income products, with Retail Annuities generating about US$5.9b and Closed Life and Annuity Blocks about US$1.2b, alongside Institutional Products at roughly US$577 million, supporting a market value near US$8.9b.

"Ongoing growth in demand for annuity and retirement products, supported by recent quarters where Jackson Financial reported retail annuity sales approaching US$6b with record RILA sales of more than US$2.3b and RILA assets above US$26b, continues to build a larger fee and spread-earning base, which can support future revenue and earnings growth."

The impact on Jackson Financial’s complex hedging and capital structure, if a single pressure shifts the balance between that spread engine and long term capital strength, will matter a lot for investors focused on margins and cash returns.

If that balance between spreads and capital is what you care about, the full narrative for Jackson Financial explains how Jackson Financial could potentially respond to rate swings in a way that supports its cash generation.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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