Financials have been on fire lately. These stocks are expected to fly higher from here

Financials have been on a tear lately, and some stocks in the space could break out. The S & P 500 financial sector has advanced more than 16% this year and nearly 4% over the past month. It's also jumped 7% during the third quarter, outperforming the S & P 500's 0.3% increase. The sector has derived optimism from an expected Federal Reserve rate cut later this month, with many anticipating the U.S. economy to stave off a potential recession.

Redburn Atlantic initiated KKR late last month with a buy rating and lauded the private equity giant's efforts to diversify its business. These include its acquisition of Global Atlantic, which was completed earlier this year , as well as the company's growing list of assets. KKR YTD mountain KKR stock.

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