Small-Cap Financials Lag as Momentum Grades Hit Zero

Ten small-cap financial stocks currently hold the weakest relative momentum grades in their sector, according to data tracked by GN stocks/banks. All ten names have been assigned a grade of F, which indicates that their price performance over medium- and long-term horizons has trailed their sector peers. This uniform low rating reflects a broad weakness in the cohort, with every stock posting a negative year-to-date return.

The group spans diversified financial services, mortgage lenders, and fintech firms, yet none have shown relative strength against the broader financial sector. The momentum grade is derived from a comparison of multiple price-based indicators, meaning that a score of F signals persistent underperformance relative to the sector benchmark rather than a single-day price drop.

Coastal Financial leads the group with steepest loss

Coastal Financial (CCB) recorded the largest decline among the ten, falling 59.83% year to date. Gemini Space Station (GEMI) followed with a 54.74% drop, while LendingTree (TREE) lost 50.69% of its value. These three names account for the deepest losses in the group, suggesting that their business models—spanning regional banking, space-adjacent financial services, and consumer lending—have faced the sharpest de-rating.

At the other end of the range, UWM Holdings (UWMC) posted the smallest decline at 7.69% year to date, though it still carries an F momentum grade. This indicates that even the least damaged name in the group has underperformed its sector peers over the measured period. The spread between the best and worst performer is 52.14 percentage points, underscoring the uneven impact of the broader market environment on small-cap financials.

Mid-range losses cluster around the 25% mark

Five of the ten stocks—Bakkt (BKKT), Perella Weinberg Partners (PWP), Securitize (SSECZ), Teamshares (TTMS), and Walker & Dunlop (WD)—all fell between 25% and 36% year to date. Bakkt lost 25.20%, PWP dropped 26.53%, Securitize declined 25.69%, Teamshares fell 27.57%, and Walker & Dunlop was down 35.53%. AMERISAFE (AMSF) sat near the middle of this cluster at a 35.59% decline.

This mid-range cluster suggests a common pressure point across several small-cap financial sub-sectors. Whether the firms are engaged in digital asset infrastructure, wealth management, mortgage brokerage, or commercial real estate lending, their relative underperformance against sector peers has been consistent enough to warrant the same lowest momentum grade from GN stocks/banks.

Momentum grade reflects relative sector underperformance

The F grade is not an absolute valuation judgment but a relative measure. It compares each stock's medium- and long-term price trajectory against other financial sector names. A stock can be falling in absolute terms yet still earn a higher momentum grade if its sector peers are falling faster. In this case, all ten names trailed their peers, which is what drives the uniform F rating.

Investors tracking small-cap financial exposure should note that the entire cohort is currently at the bottom of the sector-relative momentum ranking. No name on the list has shown outperformance over the measurement window, and the divergence in absolute losses—ranging from under 8% to nearly 60%—reflects company-specific business dynamics layered on top of a shared sector-relative weakness.