Among Billionaire Ken Fisher’s Finance Stock Picks with Huge Upside Potential
We recently shared a list of Billionaire Ken Fisher’s 10 Finance Stock Picks with Huge Upside Potential. Today, we will delve into where Old Second Bancorp, Inc. (NASDAQ:OSBC) stands among these top picks by Ken Fisher in the finance sector.
The global financial industry encompasses various sectors such as banking, insurance, asset management, and capital markets, playing a crucial role in supporting economic activities. With the banking industry managing assets worth $400 trillion as of 2025, generating annual revenue of $7 trillion and profits of $1.1 trillion, the financial services sector has been witnessing robust growth. In fact, it has outperformed the broader market with a 16% increase in the past year, driven by dropping interest rates, easing inflation, and investor confidence.
Despite some macroeconomic uncertainties, the U.S. economy showed better-than-expected growth in 2024, with GDP expanding by 2.7%. While growth is projected to slow down to around 1.5% in 2025, the financial sector remains resilient, supported by anticipated Fed rate cuts, stable regulations, and increased market activity. Factors like record consumer debt and corporate refinancing needs are likely to influence borrowing patterns in the coming months.
Looking ahead, financial companies are poised to benefit from the resurgence in financial markets, with M&A activity, buyouts, and private lending gaining momentum in 2025. Strategic deals, investments in AI technology, and rapid growth in private markets are expected to drive profits for major financial players. This surge in deals and fundraising after a period of dormancy sets the stage for significant gains in the financial sector.
On the other hand, the global insurance sector is grappling with economic uncertainties, high inflation, and volatile interest rates. Despite personal property and casualty insurance growing by 9.5% between 2022-2023, mainly driven by rate increases, insurers are focusing on innovation and expanding into emerging markets to sustain growth.
In the midst of these market dynamics, Old Second Bancorp, Inc. (NASDAQ:OSBC) emerges as a regional bank offering community banking services across the U.S. With personal and business accounts, mortgage and commercial loans, wealth management services, treasury, and custodial services, OSBC is a solid pick in Ken Fisher’s portfolio due to its strong capital base and enhanced credit quality.
For the fourth quarter of 2024, OSBC reported $19.1 million in net income ($0.42 per share), with solid lending revenue and an improved interest margin. The bank’s recent acquisition of First Merchants branches bolstered its deposit base and loan-to-deposit ratio, setting the stage for future growth.
Looking ahead to 2025, OSBC anticipates mid-single-digit loan growth, slight margin compression due to competition, and strategic initiatives focused on acquisitions, share buybacks, and capital enhancement. While OSBC ranks 10th on Ken Fisher’s list of finance stock picks with high upside potential, our analysis suggests that certain AI stocks may offer greater returns within a shorter timeframe.
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Disclosure: None. This article was originally published on Insider Monkey.
