10 Best Bank Stocks to Buy for 2026: Analysts Highlight Top Picks Amid Promising Market Outlook
By Wayne Duggan | Reviewed by John Divine | November 11, 2025
As we approach 2026, analysts see significant opportunities in select bank stocks, forecasting solid economic growth, a favorable regulatory landscape, and potential resurgence in mergers and acquisitions to boost banking sector revenues. However, uncertainties such as inflationary pressures, rising consumer debt, and potential credit risks if a recession looms necessitate careful selection of bank stocks for investment.
According to investment research by CFRA, a leading independent equity research firm, these 10 bank stocks stand out as promising buys for 2026, exhibiting strong upside potential and strategic positioning in their markets.
Top 10 Bank Stocks with Upside Potential (As of Nov. 10, 2025)
| 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 is calculated from the closing price on November 10, 2025. —
JPMorgan Chase & Co. (Ticker: JPM)
JPMorgan Chase, the world’s largest financial services company with approximately $4 trillion in assets, remains a solid contender. Analyst Kenneth Leon highlights that roughly 75% to 80% of JPMorgan’s revenue is linked to the U.S. economy, emphasizing that the bank’s 2026 performance will largely reflect domestic economic and capital market health.
“Management is optimistic about continued positive trends in initial public offerings and mergers and acquisitions,” said Leon. He also praised JPMorgan’s impeccable credit quality, setting it apart from other major U.S. banks. CFRA maintains a “buy” rating for JPM with a $340 price target, compared to its November 10 closing price of $316.89. —
Bank of America Corp. (Ticker: BAC)
Bank of America, one of the largest U.S. commercial and investment banks, benefits from a resilient U.S. consumer base driving its diversified business segments. Leon noted the bank’s recent quarters showed robust revenue growth, strong net interest income, and expanding noninterest income.
“Its leadership in wealth management, consumer banking, and investment banking reduces investor risk,” he explained. CFRA assigned a “buy” rating and $58 price target, with BAC closing at $53.42 on November 10. —
Wells Fargo & Co. (Ticker: WFC)
Wells Fargo, another heavyweight U.S. bank primarily focused on domestic lending, is expected to enhance returns significantly in 2026. Analyst Alexander Yokum said the removal of the Federal Reserve’s asset cap on Wells Fargo in mid-2025 is transformational, likely fostering growth and enhanced market share amid a regulatory environment improving in Wells Fargo’s favor.
CFRA gives Wells Fargo a “buy” rating and a $110 price target, strongly above its $86.10 close on November 10, highlighting a 28% upside.
Royal Bank of Canada (Ticker: RY)
Canada’s largest commercial bank, Royal Bank of Canada, also owns U.S.-based City National Bank. Yokum expressed confidence in Royal Bank’s capability to navigate tough economic conditions while boosting returns on equity above 17% as it integrates recent acquisitions and grows its U.S. footprint. City National’s capital-light transaction banking offers attractive growth prospects.
With a closing price of $146.89 on November 10, CFRA’s $180 price target suggests a 23% potential gain, meriting a “buy” rating.
Citigroup Inc. (Ticker: C)
Citigroup is recognized for its diversified global banking presence and successful restructuring efforts. Leon notes its strong franchises in banking technology platforms, treasury services, and global wealth management.
The 2025 strategic exit from the Mexican consumer banking sector has streamlined operations further. Citigroup’s positioning for institutional market growth underpins CFRA’s “buy” rating and $110 price target, compared to a closing price of $101.49 on November 10. —
Canadian Imperial Bank of Commerce (Ticker: CM)
CIBC, another major Canadian commercial bank with a growing U.S. presence, has improved its risk profile by reducing exposure to riskier U.S. commercial real estate, focusing more on residential mortgages and avoiding volatile loan segments.
Yokum believes that this conservative lending mix should help maintain asset quality and limit loan losses. The Capital Markets segment is viewed as a major growth catalyst. CFRA’s “buy” rating and $96 target price imply a 12% upside from November 10’s close of $85.69. —
ING Groep NV (Ticker: ING)
Dutch-based ING stands out in Europe for its integrated banking, insurance, and asset management services. Analyst Firdaus Ibrahim points to ING’s strong momentum fueled by digital banking innovation, a solid funding profile, and aggressive goals to achieve a 14% return on equity by 2027. —
Barclays PLC (Ticker: BCS)
Barclays, a leading UK-based financial group, is benefiting from strategic investments and restructuring, with analysts expecting steady improvement in profitability and capital efficiency into 2026. —
PNC Financial Services Group Inc. (Ticker: PNC)
PNC, a prominent U.S. regional bank, is cited for robust growth prospects driven by expanding client services and geographic footprint. The bank is targeting returns on tangible equity approaching top-tier levels in its sector.
NatWest Group PLC (Ticker: NWG)
NatWest Group of the UK is positioned to capitalize on improving economic conditions and regulatory easing with a focus on digital transformation and customer service enhancements.
Market Outlook and Considerations for 2026
Heading into the new year, economic growth and regulatory support are anticipated to create a conducive environment for banks to grow loan portfolios and enhance fee-based income, especially from mergers and acquisitions.
However, potential headwinds including trade policy uncertainties related to the Trump administration tariffs, inflation persistence, escalating consumer debt levels, and rising delinquencies highlight the necessity for investors to be discerning in their bank stock selections. CFRA’s recommended picks reflect banks with strong balance sheets, efficient operations, and strategic market positions poised to navigate the challenges and seize growth opportunities in 2026. —
Investors interested in banking stocks may consider these CFRA recommendations as a starting point for further research and portfolio decision-making given their growth potential and operational strengths.
Related Resources
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This article is for informational purposes and should not be construed as financial advice. Investors are advised to perform due diligence or consult with a financial advisor before making investment decisions.