12 Best & Worst BD Stocks: Q1, 2023

A number of broker-dealers and financial institutions have gotten caught up in the fallout from Silicon Valley Bank’s collapse in March.

In some cases, concerns over outflows from bank accounts and losses in some investments tied to rising interest rates, have had a dramatically negative impact on the share prices of these financial firms.

Charles Schwab’s stock, for instance, dropped 36% in the first quarter of 2023 (based on trading from Jan. 3 to March 31) and is down 36.5% this year through Thursday, according to Morningstar data.

JPMorgan Chase analyst Kenneth Worthington wrote in a note last week: “Investors see a number of risks associated with the Schwab Bank — sorting risk, bank run risk, regulatory risk and valuation risk.”

On the flipside, Interactive Brokers’ stock rose 15.7% in the first quarter and is up about 8% year to date.

Overall — based on the performance of the Financial Select Sector SPDR ETF — financial stocks fell roughly 6.3% in Q1 and are down about 6% through Thursday.

But the S&P Regional Banking ETF SPDR is down 30% year to date. It fell 25% in the first quarter.

Here’s how the stocks of major broker-dealers performed in Q1 of 2023, as well as over the past one-year and five-year periods, according to data from Morningstar.

(Image: Chris Nicholls/ALM)