We recently published an article titled Why These 15 Financial Services Stocks Are Surging In 2025. In this article, we are going to take a look at where Inter & Co, Inc. (NASDAQ:INTR) stands against the other financial services stocks.

The financial services sector has entered 2025 on a wave of strong performance and renewed investor interest. This sector consists of banking, payments, insurance, and asset management and is a cornerstone of the global economy.

These stocks didn’t do too well during the 2022 downturn, as there was uncertainty regarding whether or not the Federal Reserve would bail out regional banks. However, after the “mini banking crisis” calmed down, these stocks have performed quite well despite the macro trends being uncertain. And for some stocks, that momentum has been even stronger so far this year. It’s worth looking at why.

Even during bear markets, there are pockets of the market that perform exceptionally well. For example, I identified 15 Real Estate Stocks that are up the Most in 2025 in another article.

Methodology

For this article, I screened the best-performing financial services stocks year-to-date.

I will also mention the number of hedge fund investors in these stocks. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

A bustling financial district with a towering bank building at its center.

Inter & Co, Inc. (NASDAQ:INTR)

Number of Hedge Fund Holders In Q4 2024: 12

Inter & Co, Inc. (NASDAQ:INTR) is a Brazil-based digital financial super app that provides banking, investment, insurance, and digital commerce services to over 36 million customers across the Americas.

The stock has surged in 2025 primarily because the company reported its highest-ever net income of R$973 million for 2024, which was three times greater than the prior year. This record performance was driven by a 35% year-over-year increase in total net revenue to R$6.4 billion and robust growth in active clients and engagement across its platform.

Q4 2024 results showed a net interest margin of 9.7% and a return on equity of 11.7%, with asset quality metrics improving despite a challenging macro environment.

Another material event was the announcement on April 30, 2025, of a R$500 million subordinated debt issue to strengthen capital adequacy. This is expected to boost the Basel Ratio by about one percentage point and further solidify the company’s financial standing.

The consensus price target of $6.78 implies 2.42% upside.

Inter & Co, Inc. (NASDAQ:INTR) stock is up 59.24% year-to-date.

Overall INTR ranks 6th on our list of the financial services stocks that are surging in 2025. While we acknowledge the potential of INTR 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 time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than INTR but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

 

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

 

Disclosure: None. This article is originally published at Insider Monkey.