10 of the Best Bank Stocks to Buy for 2026: Analysts See Strong Upside Potential
As investors prepare for 2026, banking stocks are garnering attention due to expectations of solid economic growth and a generally friendly regulatory environment, which could drive impressive loan growth across the sector. Moreover, a potential revival in mergers and acquisitions activity is poised to boost investment banks’ fee revenues. However, uncertainties remain, particularly associated with tariff policies under the current U.S. administration, inflationary pressures, and rising consumer debt and delinquency rates, all of which pose risks to some banking stocks if the economy dips into recession.
With careful stock selection being crucial for investors in 2026, CFRA has identified 10 of the best bank stocks poised for growth and strong returns. Below is an overview of these recommended stocks, their upside potential, and key analyst insights.
Top 10 Bank Stocks with Upside Potential for 2026
| Bank | Ticker | Upside Potential* |
|---|---|---|
| JPMorgan Chase & Co. | JPM | 7% |
| Bank of America Corp. | BAC | 9% |
| Wells Fargo & Co. | WFC | 28% |
| Royal Bank of Canada | RY | 23% |
| Citigroup Inc. | C | 8% |
| Canadian Imperial Bank of Commerce | CM | 12% |
| ING Groep NV | ING | 14% |
| Barclays PLC | BCS | 8% |
| PNC Financial Services Group Inc. | PNC | 27% |
| NatWest Group PLC | NWG | 11% |
*Upside potential figures are based on analysis as of November 10, 2025. —
Key Highlights on Top Picks
JPMorgan Chase & Co. (JPM)
One of the world’s largest financial services firms, JPMorgan governs roughly $4 trillion in assets. Analyst Kenneth Leon notes that 75-80% of JPMorgan’s revenue stems from the U.S. economy, tying the bank’s fortunes closely to the health of domestic markets and capital market activity in 2026. Positive trends in initial public offerings (IPOs) and mergers & acquisitions (M&A) should benefit JPMorgan. The bank is distinguished by its pristine credit quality, setting it apart among U.S. megabanks. CFRA maintains a “buy” rating with a $340 price target, while shares closed at $316.89 on Nov. 10. Bank of America Corp. (BAC)
As one of the largest U.S. commercial and investment banks, Bank of America is firing on all cylinders, driven by resilient U.S. consumer demand. Leon highlights the bank’s robust revenue growth, with gains in both net interest and noninterest income. The company’s diversified model, spanning wealth management and investment banking, reduces risk for investors. CFRA has a “buy” rating and a $58 target; BAC closed at $53.42 on Nov. 10. Wells Fargo & Co. (WFC)
U.S.-focused Wells Fargo is expected to improve its return on tangible common equity, targeting 17%-18% long term. Importantly, the Federal Reserve lifted its punitive asset cap on Wells Fargo mid-2025, a move anticipated to reinvigorate growth and market share expansion. Analyst Alexander Yokum forecasts improved investor sentiment and regulatory conditions. Shares closed at $86.10 with a price target of $110. Royal Bank of Canada (RY)
Canada’s largest commercial bank, Royal Bank of Canada continues to prove resilient through tough economic times. Analyst Yokum notes the institutional integration of acquisitions is likely to push returns on equity above 17%. With the U.S. subsidiary City National showing improvement, RBC is set to broaden its U.S. market presence. CFRA rates RY as a “buy” with a $180 price target, shares closed at $146.89. Citigroup Inc. (C)
Citigroup has demonstrated strong execution on restructuring and is positioned for growth in institutional markets. The bank benefits from market leadership in banking technology, treasury services, and global wealth management, and recently exited its Mexican consumer banking operations to streamline focus. It maintains a strong balance sheet ready to weather market shocks. CFRA gives C a “buy” with a $110 target; shares closed at $101.49. Canadian Imperial Bank of Commerce (CM)
CIBC has enhanced its risk profile by reducing exposure to U.S. commercial real estate, focusing on stable residential mortgages and limiting volatile loan segments. Its Capital Markets segment stands out as a growth driver. Analyst Yokum appreciates the bank’s stable asset quality outlook. CFRA assigns a “buy” rating and a $96 price target, with shares at $85.69. ING Groep NV (ING)
This Netherlands-based bank is noted for strong digital banking capabilities and a resilient funding profile. ING aims to reach a 14% return on equity by 2027 through disciplined cost control, revenue diversification, and increased fee income. Its 2025 performance showed solid margin management and lending growth, according to analyst Firdaus Ibrahim. CFRA recommends ING with a $30 price target; shares closed at $26.32. Barclays PLC (BCS)
One of the UK’s largest financial institutions, Barclays combines reliable financial performance with cost discipline and strong capital returns. Analyst Ibrahim values the bank’s improving returns on tangible equity and operational efficiency.
Outlook
Heading into 2026, the banking sector offers promising opportunities, driven by economic momentum and potential regulatory easing. While risks around tariffs, inflation, and consumer credit cannot be ignored, selecting well-positioned banks with strong balance sheets, diversified revenue streams, and growth prospects is critical.
Investors eyeing the banking sector should consider the banks highlighted by CFRA as part of a diversified portfolio strategy to capitalize on the financial sector’s anticipated rebound and growth in the coming year.
Note: This article is for informational purposes only and does not constitute financial advice. Please consult a financial professional before making investment decisions.