The financial sector's performance this year is fragmented, with its industry groups diverging from laggards to several outperforming the market. One of the winners is the investment banks and brokerages group, where Robinhood stock is among those at new highs.
The group is up more than 18.5% year to date, beating the broader Financial Select Sector SPDR, which is up 11%. Several brokerage stocks are forming sound base patterns or continue to act well.
Interactive Brokers is forming a flat base with a 68.07 buy point, according to MarketSurge pattern recognition. Shares found support at the 10-week moving average, and tight trading in the pattern is another positive sign.
The relative strength line hasn't caught up with the price action, however. Watch for the line to come closer to new highs if the stock breaks out to additional new highs. The brokerage, which has more than 4 million user accounts, has an IBD Composite Rating of 97.
Interactive Brokers stock has a 21-day average true range (ATR) of 2.82%. The average true range is a metric in MarketSurge that gauges the characteristic breadth of a stock's behavior. Stocks with a high ATR tend to make large price moves that can trigger sell rules. Stocks with lower ATRs tend to make more incremental moves.
Robinhood Markets, which has more than tripled so far this year, dipped below its 10-week moving average the first week of September but has bounced back. Support at the 10-week line gave the stock a follow-on entry around 112, near the high on Aug. 22.
Robinhood stock was trading near 123 Friday afternoon, a bit extended. So investors should wait for another chart pattern to emerge. Taking profits from earlier entries is an option, too.
Robinhood Stock's Rating
The stock has a Composite Rating of 98 and an ATR of 4.97%.
Charles Schwab also is forming a flat base. But shares have been trading below the 50-day moving average for a couple of weeks, and the RS line is trending lower. Schwab —the largest brokerage, with a $170 billion market cap — has a Composite Rating of 91. Its ATR is 2.07%.
Investment bank PJT Partners is forming a cup-with-handle base and is trading quite near the 189.19 buy point. Despite a 37% decline in the base, the handle shows bullishly tight trading and support at the 10-week moving average.
The steep decline reset the base count for PJT shares, meaning the current base is a lower-risk first-stage base. New York-based PJT has a Composite Rating of 95 and ATR of 2.61%.
Raymond James Financial is in a buy zone from a 170.88 flat-base entry. The buy range goes to 179.42. The stock also found support at the 10-week line ahead of its breakout. The average true range is 1.82%.
The St. Petersburg, Fla.-based financial services firm provides support for independent financial advisors. Its Composite Rating is 86, below the 90 minimum normally associated with leading stocks. The firm's earnings fell 9% in the most recent quarter. Analysts expect declines in the current and following quarters before growth returns in the first half of 2026.
Jefferies Financial Group reports August-quarter results Sept. 29 after the close. Analysts expect earnings of 80 cents a share, an increase of 6.7%. Revenue is seen rising 14.2% to $1.922 billion.
The stock is recovering from a severe decline that chopped its value by more than half in the first four months of the year. Shares are up 76% from the April low. While there's no clear buy point on the chart, the 50-day moving average is almost back above the 200-day line. A "golden cross" — in which the 50-day line climbs above the 200-day — is considered bullish.
Jefferies' ATR is 2.74% and its Composite Rating is 91.
Besides Robinhood stock and the other brokerages, a few other financial stocks are worth watching:
- XP, a Brazil-based brokerage and financial services provider, is forming a cup-without-handle base. Shares are less than 4% from the 20.64 buy point. Already, the stock is up more than 65% this year. The Composite Rating is 94. Its ATR is 3.43%.
- Evercore is trading near all-time highs after rallying nearly 140% from its April low. Year to date, it's up 28%. The New York-based investment bank's Composite Rating is 97; the ATR is 2.58%.
- Piper Sandler broke out of a long base and remains in buy range from a 351.80 buy point. One of the largest investment banks in the nation, Piper Sandler has a 97 Composite Rating. Its ATR is 2.71%.
