What Makes StoneX Group (SNEX) a Defensive Financial Services Firm?
In its first-quarter 2025 investor letter, Riverwater Partners Small Cap Strategy highlighted stocks such as StoneX Group Inc. (NASDAQ:SNEX). StoneX Group Inc. (NASDAQ:SNEX) is a global financial services company. The one-month return of StoneX Group Inc. (NASDAQ:SNEX) was 7.92%, and its shares gained 82.81% of their value over the last 52 weeks. On June 27, 2025, StoneX Group Inc. (NASDAQ:SNEX) stock closed at $91.38 per share, with a market capitalization of $4.47 billion.
Riverwater Partners Small Cap Strategy stated the following regarding StoneX Group Inc. (NASDAQ:SNEX) in its Q1 2025 investor letter:
"Our largest weighting in the portfolio remains StoneX Group Inc. (NASDAQ:SNEX), a more defensive financial services firm. As a capital markets operator, SNEX stands to benefit from increased volatility. Looking ahead, should market conditions deteriorate and valuations compress further, we may look to add exposure to traditional banks when the risk/reward becomes more favorable."
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StoneX Group Inc. (NASDAQ:SNEX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 23 hedge fund portfolios held StoneX Group Inc. (NASDAQ:SNEX) at the end of the first quarter, which was 27 in the previous quarter. In Q1 2025, StoneX Group Inc. (NASDAQ:SNEX) reported earnings of $71.7 million reflecting increases of 35% year-over-year. While we acknowledge the potential of StoneX Group Inc. (NASDAQ:SNEX) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains.
In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors. While we acknowledge the potential of SNEX as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.
Disclosure: None. This article is originally published at Insider Monkey.
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