Charles Payne: Why financial stocks could outperform tech

Charles Payne said financial stocks could be poised to outperform as investment banking activity accelerates, while maintaining that technology companies still have significant upside over the coming years.

Responding to an audience question about whether technology stocks had reached their peak, the Fox Business host said financial institutions appear especially well positioned thanks to a sharp increase in capital markets activity, News.Az reports, citing Fox Business.

"We've already topped the largest amount of money raised in IPOs, and we still have six months to go," Payne said, predicting investment banking revenues would be "through the roof."

He pointed to major Wall Street firms, including JPMorgan and Goldman Sachs, as potential beneficiaries of the surge in initial public offerings and corporate financing activity.

"So investment banking revenues are going to be through the roof. So if you have the JPMorgans and the Goldman's of the world, you're solid. You know, we spend so much time in financial media, and I think it's a damn shame to worry about the top. Instead of, are you participating? Are you this? Because this window of opportunity is the most unique, powerful window of opportunity. Anyone in this audience, there'll never be a time like the next five years. The past five and the next five, there'll never be a time like this. So I think there's a lot of runway.

You know, I'm looking at these companies. They report their earnings, and they're saying, hey, we can give guidance out to 2029, 2030. Every single day, Wall Street is ratcheting up their numbers. So I don't think we're anywhere near done right now."