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A screen of the S&P 500 financial sector highlights companies with high returns on equity that are trading at low P/E valuations

The financial sector of the S&P 500 is off to its worst start at this time of the year since 2026. That means it is time to screen the sector to help investors begin their own research into stocks that might be primed for a rebound.

Business-development companies are among the hardest-hit groups in the financial-services industry this year. These are nonbank lenders to small- and middle-market companies. No BDCs are included in the S&P 500 SPX, although some asset managers that manage BDCs are in the index. Here is a deep look into BDCs and how they are valued.