Financial Stocks Underperform: DeFi Technologies, Pathfinder Bancorp, GoHealth, Carver Bancorp, and LM Funding America Lag Behind Peers

Several financial sector stocks are struggling to deliver expansion in revenue and earnings, leading to low growth percentile performances. DeFi Technologies, Pathfinder Bancorp, GoHealth, Carver Bancorp, and LM Funding America are among the weakest performers. These stocks have declined significantly year-to-date and over the past year, with DeFi Technologies and GoHealth experiencing the steepest declines. Despite some marginal improvements, these stocks continue to lag behind their peers.

Several financial sector stocks are struggling to deliver expansion in revenue and earnings, leading to low growth percentile performances. DeFi Technologies Inc. (DEFT), Pathfinder Bancorp Inc. (PBHC), GoHealth Inc. (GOCO), Carver Bancorp Inc. (CARV), and LM Funding America Inc. (LMFA) are among the weakest performers. These stocks have declined significantly year-to-date and over the past year, with DeFi Technologies and GoHealth experiencing the steepest declines. Despite some marginal improvements, these stocks continue to lag behind their peers.

The latest Benzinga Edge growth rankings reveal that these stocks remain at the bottom of the growth spectrum, reflecting limited progress across both short-term and long-term measures [2]. DeFi Technologies, for instance, saw its growth ranking collapse from 62.95 to 9.98, marking a steep drop of nearly 53 points, underscoring its inability to sustain revenue growth in the digital assets space. Similarly, Pathfinder Bancorp slid from 66.94 down to 24.93, a decline of almost 42 points in its growth rankings, highlighting sluggish expansion at the community banking level.

GoHealth, a digital insurance broker, tumbled from 99.7 to 62.10, losing over 37 points as it continues to underperform against other digital insurance brokers. Carver Bancorp and LM Funding America also remain stuck in the lower decile of growth rankings, with CARV climbing only to 12.35 from 9.54, and LMFA showing similar issues, climbing only to 13.27 from 9.54.

The weak growth profiles of these stocks highlight ongoing structural challenges, whether it be scalability hurdles for fintech names or slower-than-expected performance at smaller regional banks. In a market increasingly rewarding visible momentum, the lack of growth potential here may weigh heavily on valuation outlooks.

In contrast, Daily Journal Corporation (DJCO) reported strong quarterly results, with revenues climbing 34% and net income per share decreasing 38% year over year. The company’s Journal Technologies segment remained the core growth driver, contributing roughly 79% of revenues. Segment revenues climbed 44% to $18.5 million, up from $13.1 million a year ago. However, net income declined to $14.4 million compared to $23.4 million a year earlier, reflecting lower gains on DJCO’s securities portfolio compared to last year’s quarter [1].

References:
[1] https://www.nasdaq.com/articles/djco-june-quarter-earnings-rise-y-y-tech-growth-stock-1
[2] https://www.benzinga.com/markets/equities/25/08/47299316/5-financial-stocks-struggle-with-expansion-lagging-behind-sector-peers