In a rising interest rate environment, most sectors usually struggle with a high cost of capital. However, the financial sector typically thrives in a rising interest rate environment because its revenues correlate positively to interest rates.
With the Federal Reserve unlikely to cut rates anytime soon, financial companies could continue to perform well. Therefore, it could be wise to buy fundamentally strong financial stocks OneMain Holdings, Inc. (OMF), World Acceptance Corporation (WRLD), and EZCORP, Inc. (EZPW).
