Investing.com -- As investors position themselves for the first half of 2026, BTIG has identified several standout financial stocks poised for significant growth.
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Their analysis highlights companies with strong fundamentals, strategic acquisitions, and technological advantages that could drive outperformance in the coming months.
1. Capital One Financial Corp. (COF): BTIG’s Large-Cap Top Pick for 1H26 with a $308 price target. The firm sees potential upside to $450 in their bull case scenario, with investors currently taking a cautious approach to the Discover acquisition benefits. BTIG expects strong execution on integration plans and synergy realization.
Recently, Capital One Financial was removed from Goldman Sachs’ US Conviction List, while BofA Securities and Wolfe Research initiated or raised their price targets, citing the Discover acquisition and credit performance.
2. Enova International, Inc. (ENVA): Named BTIG’s SMID-Cap Top Pick with a $199 price target versus its current $157.20 price. The Grasshopper Bancorp acquisition positions Enova to become a leading neobank and fintech player. Despite market skepticism around deal synergies, BTIG highlights Enova’s consistent track record of beating guidance.
Enova International announced a definitive agreement to acquire Grasshopper Bancorp for approximately $369 million, a move that prompted S&P Global Ratings to revise its outlook on the company to positive.
3. Rocket Companies, Inc. (RKT): BTIG’s new Large-Cap favorite among originators/servicers with a $25 price target.
The Mr. Cooper acquisition makes Rocket the largest mortgage servicer nationally, while AI-driven workflow enhancements are expected to improve margins. The company’s tech-forward platform and dominant borrower connectivity provide competitive advantages.
Rocket Companies extended a master repurchase agreement with Bank of America through December 2027, and also saw coverage initiated by Jefferies with a Buy rating and reinstated by JPMorgan with a Neutral rating.
4. Rithm Capital Corp. (RITM): Selected as BTIG’s SMID-Cap Top Pick with a $16 price target and attractive 9.17% dividend yield. Recent acquisitions (Paramount Group, Sculptor, Crestline) establish groundwork for significant fee generation and AUM growth. The company’s asset-light business model improvements and AI-driven efficiency potential strengthen BTIG’s conviction.
Rithm Capital has received new or resumed coverage from several firms, including a Buy rating from UBS and an Outperform rating from Wedbush, while its subsidiary Newrez announced a strategic investment in an AI-powered mortgage underwriting platform.
5. Block, Inc. (XYZ): BTIG’s Large-Cap Top Pick with a $90 price target versus current $65.09 price. The firm expects profitable mid-teens growth driven by Cash App and Square’s deeper customer penetration. Management’s 2026 gross profit growth targets of 17% exceed consensus expectations of 15.2%.
Block, Inc. received continued support from analysts, with TD Cowen reiterating the company as its "Best Idea for 2026" and UBS reaffirming its Buy rating following the company’s recent investor day.
6. Shift4 Payments, Inc. (FOUR): Named BTIG’s SMID-Cap Top Pick with a $105 price target. The firm highlights FOUR’s compelling 11% FY26E free cash flow yield alongside expectations for 15%+ organic growth.
Growth drivers include annualization of FY25 wins, new customer acquisition, cross-selling opportunities, and the Global Blue integration.
In a recent development, Shift4 Payments launched a stablecoin settlement platform for merchants and declared a cash dividend of $1.50 per share on its Series A preferred stock.
These selections reflect BTIG’s focus on companies with multiple growth catalysts, strategic acquisitions, and technological advantages that position them for outperformance regardless of broader market conditions.
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