It was largely a down day for ASX financials stocks and the broader ASX 200 on Monday.
The S&P/ASX 200 Index (ASX: XJO) fell 0.74% yesterday, while the S&P/ASX 200 Financials Index (ASX: XFJ) fell just over 0.5%.
However two struggling ASX financials stocks that bucked this trend were Zip Co Ltd (ASX: ZIP) and Premier Investments Ltd (ASX: PMV).
This has come after significant falls over the last 12 months.
Let's find out what happened.
Zip Co Ltd (ASX: ZIP)
The ASX fintech company has endured a tough past year, particularly following the release of its half-year results last month which sent its share price down 34%.
It appeared that investors were concerned with modest profit projections.
Its share price remains down more than 54% year to date.
Yesterday however, the ASX financials stock enjoyed a nice rebound, rising 4.5%.
While no price sensitive news was released, the company did release an announcement that Superannuation provider Australian Retirement Trust had become a substantial holder, buying 63,834,078 fully paid ordinary shares.
Premier Investments Ltd (ASX: PMV)
It has also been a rough year for Premier Investments.
The company owns the Just Group which oversees retail fashion brands Just Jeans, Jacqui E, Peter Alexander, Jay Jays, Portmans, and Dotti. Just Group also owns the specialty children's stationery brand Smiggle.
Its share price is down more than 40% in the last 12 months.
However, yesterday it enjoyed a rebound of 5.68%.
A contributing factor to this rise could be its 1H26 result, which was released last Friday.
The company announced a fully franked interim dividend after skipping one last year.
The updated dividend is 45 cents per share, which represents a yield over 3%.
Premier Investments shares jumped 8% last Friday on the results, with investors continuing to buy the ASX financials stock on Monday.
Is there upside for these ASX financials stocks?
It would appear that Monday's big jump could be a sign of more to come for these companies.
After falling considerably over the last year, brokers now see these ASX financials stocks as attractive opportunities.
UBS currently has a positive view on Premier Investments shares, with the broker because of its strong core ANZ Peter Alexander business and it's 25% stake in Breville Group Ltd (ASX: BRG).
Meanwhile, Zip shares have also received positive outlooks from brokers on valuation grounds.
Macquarie recently retained its buy rating and $3.35 price target on Zip shares.
From yesterday's closing price of $1.51, that indicates a potential upside of roughly 120%.
The post Are these battered ASX financials stocks finally bouncing back? appeared first on The Motley Fool Australia.
Motley Fool contributor Aaron Bell has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended Premier Investments. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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