10 of the Best Bank Stocks to Buy for 2026
By Wayne Duggan | Edited by Jordan Schultz | April 9, 2026
As the financial sector gears up for another dynamic year, analysts are eyeing several bank stocks poised for significant growth and value. Following recent developments such as the Federal Reserve’s removal of asset caps and a favorable economic backdrop, these banks could offer promising investment opportunities throughout 2026. —
Market Outlook for Bank Stocks in 2026
Investor sentiment around bank stocks is cautiously optimistic. Despite some emerging concerns in the private credit market, bank earnings have demonstrated resilience. Supportive policies from the current administration are fostering a conducive environment for financial institutions, especially if yield curves steepen, which would improve banks’ net interest margins. Meanwhile, a resurgence in investment banking activities adds to the sector’s appeal. However, selection will be critical, as risks vary across institutions.
Top 10 Bank Stocks to Watch, According to CFRA
CFRA analysts have identified 10 undervalued bank stocks with considerable upside potential based on price targets as of April 8, 2026:
| Bank | Ticker | Upside Potential |
|---|---|---|
| Wells Fargo & Co. | WFC | 39.3% |
| Canadian Imperial Bank of Commerce | CM | 33.7% |
| Royal Bank of Canada | RY | 31.5% |
| PNC Financial Services Group Inc. | PNC | 31.3% |
| ICICI Bank Ltd. | IBN | 27.2% |
| Bank of America Corp. | BAC | 25.2% |
| ING Groep NV | ING | 23.6% |
| HSBC Holdings PLC | HSBC | 19.6% |
| Citigroup Inc. | C | 13.3% |
| JPMorgan Chase & Co. | JPM | 10.4% |
Highlights of Individual Bank Prospects
Wells Fargo & Co. (WFC)
Wells Fargo is positioned for a strong rebound after the Federal Reserve lifted its punitive asset cap in June 2025, allowing the bank to pursue growth initiatives aggressively. Analyst Alexander Yokum projects that Wells Fargo can reclaim lost market share and substantially improve its return on tangible common equity, targeting 17% to 18% in the medium term. CFRA rates Wells Fargo as a “buy” with a price target of $118, compared to an April 8 closing price of $84.66. Canadian Imperial Bank of Commerce (CM)
With an upside potential of 33.7%, this major Canadian bank is expected to benefit from its strong domestic market presence and growth initiatives, offering investors a compelling proposition.
Royal Bank of Canada (RY)
As Canada’s largest commercial bank, Royal Bank of Canada has successfully navigated challenging environments. It benefits from its U.S. subsidiary, City National, which diversifies revenue streams. Analyst Yokum notes strong merger synergies and credit improvements that could push the bank’s return on equity to 18% or higher. CFRA holds a “buy” rating with a $223 price target, well above the April 8 price of $169.47. PNC Financial Services Group (PNC)
PNC is another North American banking leader with a projected upside of 31.3%. Its solid balance sheet and diversified operations are expected to support continued growth.
ICICI Bank Ltd. (IBN)
One of India’s premier financial institutions, ICICI Bank boasts impressive retail and corporate banking operations. Analyst Siti Salikin highlights the bank’s superior return on equity relative to its Indian peers, driven by strong earnings growth. While some slowing is anticipated, ICICI’s expanding business banking and asset quality retention support sustained profitability. CFRA indicates an estimated 27.2% upside.
Bank of America Corp. (BAC)
Bank of America, a leader in commercial and investment banking, benefits from robust consumer spending that boosts credit card income. Analyst Kenneth Leon emphasizes the bank’s diversified portfolio and absence of credit issues, forecasting strong net interest and investment banking revenues in 2026. CFRA assigns a “buy” rating with a target price of $65, compared to $51.88 on April 8. ING Groep NV (ING)
The Dutch multinational bank, with a 23.6% upside forecast, continues to execute its strategic initiatives effectively, delivering reliable returns across its European footprint.
HSBC Holdings PLC (HSBC)
Operating in over 60 countries, HSBC continues to make strides under its strategic transformation, driven by strong momentum in transaction banking and wealth management in Asia. Analyst Firdaus Ibrahim applauds the bank’s cost controls and capital restoration progress, predicting a return on equity nearing 17%. CFRA rates HSBC “buy” with a $108 price target against an April 8 close at $90.27. Citigroup Inc. (C)
Citigroup is executing a turnaround with streamlining efforts such as divesting its Mexican consumer bank in 2025. Its global wealth and corporate treasury franchises position it well for institutional market growth. Analyst Leon sees Citi becoming the preferred cross-border banking partner in the U.S., leading to sustained gains. CFRA’s price target for Citi stands at $140, with a current price of $123.49. JPMorgan Chase & Co. (JPM)
As one of the world’s largest financial institutions with nearly $4 trillion in assets, JPMorgan’s prospects hinge on the strength of the U.S. economy. Fee-generating businesses like investment banking and asset management are expected to drive growth. Supportive policies and robust capital market activity should sustain strong results. CFRA maintains a “buy” rating with a $340 target price versus $307.97 closing price on April 8. —
Conclusion
Investors looking to capitalize on the banking sector in 2026 will need to carefully consider each institution’s strategic positioning, geographic reach, and growth opportunities. Wells Fargo’s return to growth mode after regulatory relief, Canadian banks’ strong fundamentals, and the resilience of global giants like JPMorgan and HSBC make these stocks attractive options. However, ongoing macroeconomic factors and sector-specific risks require vigilant market monitoring.
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This article is for informational purposes only and does not constitute investment advice. Please consult with a licensed financial advisor before making any investment decisions.