10 of the Best Bank Stocks to Buy for 2026: Analysts Highlight Undervalued Opportunities
As investors prepare their portfolios for 2026, bank stocks remain a focal point given the expected favorable economic and regulatory environment. According to analysts from CFRA, several bank stocks are poised to deliver substantial upside, supported by solid loan growth prospects and potential rebounds in investment banking fee revenue driven by mergers and acquisitions activity.
However, some caution is warranted as concerns linger over tariff uncertainties under the Trump administration, persistent inflation, and rising consumer debt risks which could affect credit quality if recessionary pressures intensify. Against this backdrop, selecting the right bank stocks will be critical for investors seeking to capitalize on the sector’s opportunities in 2026. Here are ten of the best bank stocks to consider, based on CFRA’s analysis as of November 10, 2025:
1. JPMorgan Chase & Co. (JPM) – Upside Potential: 7%
JPMorgan Chase holds approximately $4 trillion in assets, making it one of the largest global financial institutions. Analyst Kenneth Leon highlights the bank’s strong exposure to the U.S. economy, which accounts for about 75% to 80% of its revenue. The bank expects continued momentum in initial public offerings and M&A activity in 2026. Its superior credit quality distinguishes it from other U.S. megabanks. CFRA assigns a "buy" rating with a $340 price target. The stock last closed at $316.89. —
2. Bank of America Corp. (BAC) – Upside Potential: 9%
Bank of America is a leading commercial and investment bank with a robust wealth management division. Leon emphasizes the strength of U.S. consumer demand fueling the bank’s revenue streams. The institution has reported strong net interest income and noninterest income growth. Its diversification across wealth management, consumer banking, and investment banking reduces risk for investors. CFRA’s "buy" rating and $58 price target reflect optimism, with the stock at $53.42 on November 10. —
3. Wells Fargo & Co. (WFC) – Upside Potential: 28%
As a major U.S. lender focused primarily domestically, Wells Fargo is anticipated to improve its return on tangible common equity towards its 17-18% long-term goal. Analyst Alexander Yokum notes the Federal Reserve’s mid-2025 removal of Wells Fargo’s asset cap will be transformative, restoring growth prospects and market share. CFRA values Wells Fargo shares at $110, a significant premium over the $86.10 close.
4. Royal Bank of Canada (RY) – Upside Potential: 23%
Canada’s largest bank, Royal Bank of Canada, owns the U.S.-based City National Bank. Yokum points to its resilience through economic challenges and expects returns on equity to surpass 17%. Expansion of U.S. market share and improvements in transaction banking, a capital-light growth area, bolster the growth outlook. The stock is rated a "buy" with a $180 target, trading at $146.89. —
5. Citigroup Inc. (C) – Upside Potential: 8%
Citigroup has successfully executed restructuring initiatives that position it well for institutional market growth. Leon cites its leadership in banking technology platforms, treasury services, and global wealth management. The bank’s exit from Mexican consumer banking streamlines operations and strengthens its global footprint. The "buy" rating and $110 price target contrast with a $101.49 closing price.
6. Canadian Imperial Bank of Commerce (CM) – Upside Potential: 12%
Another major Canadian bank expanding its U.S. presence, Canadian Imperial has improved its risk profile by reducing its commercial real estate exposures. Yokum highlights its stable asset quality due to a predominantly residential mortgage portfolio. Growth drivers include the Capital Markets segment. The bank carries a "buy" rating with a $96 target versus an $85.69 market price.
7. ING Groep NV (ING) – Upside Potential: 14%
The Netherlands-based ING offers banking, insurance, and asset management services. Firdaus Ibrahim notes strong digital banking capabilities, a resilient funding profile, and the path toward 14% ROE by 2027. Its disciplined cost management and diversification of revenue streams help stabilize earnings. CFRA assigns a "buy" rating and a $30 price target; shares closed at $26.32. —
8. Barclays PLC (BCS) – Upside Potential: 8%
Barclays, one of the UK’s top financial groups, offers investors a blend of steady financial performance, cost controls, and strong capital returns. Ibrahim points to improving returns on tangible equity and robust management as key positives. CFRA rates Barclays stock as a "buy" with an $8 price target.
9. PNC Financial Services Group Inc. (PNC) – Upside Potential: 27%
Although specific details from CFRA’s analysis were not included in the summary, PNC is noted among the top picks with a substantial 27% upside potential, reflecting positive analyst sentiment based on its market positioning and financial health.
10. NatWest Group PLC (NWG) – Upside Potential: 11%
Similarly, NatWest is recognized for its growth potential with an 11% upside forecast. Its emphasis on restructuring and expansion in the U.K. banking sector helps position it for solid performance in 2026. —
Looking Ahead
Analysts expect 2026 to bring a supportive environment for banks fueled by economic growth and regulatory tailwinds. However, investors should remain alert to challenges such as inflationary pressures and credit risks tied to consumer debt. The highlighted bank stocks combine strong fundamentals, strategic positioning, and analyst-backed upside potential, making them compelling picks for those seeking exposure to the banking sector in the coming year.
Investors are encouraged to conduct their own research or consult financial advisors to align stock selections with their investment goals and risk tolerance.
This article is based on analysis as of November 11, 2025. Market conditions and stock prices may have changed since publication.