10 of the Best Bank Stocks to Buy for 2026
Analysts see significant upside potential in these undervalued bank stocks
By Wayne Duggan | Edited by Jordan Schultz | April 9, 2026
As investors look ahead to the remainder of 2026, bank stocks are drawing cautious optimism. Despite some risks tied to the private credit market, several fundamental trends position the financial sector for continued growth. Notably, a recent Federal Reserve decision to lift the asset cap on Wells Fargo signals renewed growth potential for the lender. Coupled with resilient earnings and a supportive regulatory environment, the banking industry is shaping up to be an intriguing space for investors.
Market Overview
Bank earnings growth to date in 2026 has held strong. The Trump administration’s ongoing support of the financial sector, combined with the possibility of a steepening yield curve, could enhance banks’ net interest margins—a key driver of profitability for these institutions. Additionally, analysts expect a rebound in investment banking activity, which could further bolster revenue streams.
Nonetheless, concerns persist regarding vulnerabilities in the private credit market, injecting some caution into sector sentiment. These risks underscore the importance of carefully selecting bank stocks poised not only to weather challenges but also capitalize on emerging opportunities.
Top 10 Bank Stocks to Watch in 2026
Based on CFRA analysts’ price targets and current market positions as of April 8, 2026, here are ten of the best bank stocks recommended for investment:
| Stock | Ticker | Upside Potential* |
|---|---|---|
| JPMorgan Chase & Co. | JPM | 10.4% |
| Bank of America Corp. | BAC | 25.2% |
| HSBC Holdings PLC | HSBC | 19.6% |
| Wells Fargo & Co. | WFC | 39.3% |
| Royal Bank of Canada | RY | 31.5% |
| Citigroup Inc. | C | 13.3% |
| ICICI Bank Ltd. | IBN | 27.2% |
| Canadian Imperial Bank of Commerce | CM | 33.7% |
| PNC Financial Services Group Inc. | PNC | 31.3% |
| ING Groep NV | ING | 23.6% |
*Upside potential based on April 8 close and CFRA analysts’ price targets.
JPMorgan Chase & Co. (JPM)
As one of the world’s largest financial services companies with about $4 trillion in assets, JPMorgan’s outlook depends greatly on the trajectories of the U.S. economy. Analyst Kenneth Leon highlights JPMorgan’s ability to increase market share alongside higher fee income from its investment banking and asset management segments. With policies favorable to capital markets, JPMorgan is expected to deliver another strong year. CFRA rates JPM a “buy” with a $340 target, above its $307.97 closing price on April 8. —
Bank of America Corp. (BAC)
Bank of America benefits from positive consumer spending trends, which fuel its credit card income. The bank also enjoys steady growth in net interest income, supported by stable economic conditions. Analyst Leon points to healthy underwriting and merger & acquisition activity as further growth catalysts. The bank’s diversified balance sheet faces minimal credit risk, enhancing its appeal. CFRA maintains a “buy” rating and a price target of $65, well above the $51.88 close on April 8. —
HSBC Holdings PLC (HSBC)
HSBC operates globally, spanning over 60 countries and territories. Analyst Firdaus Ibrahim praises HSBC’s robust operational momentum and successful strategic transformation. The bank leads in transaction banking and wealth management in Asia and pursues disciplined cost growth pegged at 1% annually. With capital restoration enabling share buybacks and prospects for a 17% return on equity, HSBC stands as a solid investment. CFRA’s “buy” rating is supported by a $108 price target versus its $90.27 closing price.
Wells Fargo & Co. (WFC)
The Federal Reserve’s June 2025 removal of Wells Fargo’s asset cap marks a turning point. This allows the bank to pursue growth aggressively and regain market share after years of regulatory constraints. Analyst Alexander Yokum is optimistic about Wells Fargo’s ability to improve its return on tangible common equity, potentially reaching between 17% and 18% in the medium term. Wells Fargo currently trades at $84.66, with CFRA’s buy rating anchored by a $118 price target.
Royal Bank of Canada (RY)
Canada’s biggest commercial bank, Royal Bank of Canada, also owns City National Bank in the U.S., which has diversified its revenue base. Analyst Yokum notes the bank’s strong track record in navigating challenging conditions and its superior return-on-equity potential. Synergies from mergers, credit improvements, and U.S. market growth contribute to optimism, with an anticipated return on equity of at least 18%. CFRA prices RY at $169.47 with a buy recommendation and $223 target.
Citigroup Inc. (C)
Citigroup has aggressively streamlined operations, including divesting its Mexican consumer bank in 2025. Analyst Leon underscores the strength of Citi’s global wealth and corporate treasury franchises as key drivers for institutional market growth. Citi aims to be the top U.S. banking partner for cross-border institutional clients, positioning itself strongly for future expansion. CFRA’s buy rating for Citigroup is based on a price target of $140 relative to a recent close of $123.49. —
ICICI Bank Ltd. (IBN)
India’s prominent ICICI Bank continues to impress with its retail and corporate banking capabilities. Analyst Siti Salikin highlights ICICI’s strong earnings growth and superior return on equity relative to Indian competitors since fiscal 2023. Although earnings growth may moderate, the robust retail banking franchise is expected to sustain performance.
Other Notable Picks
Canadian Imperial Bank of Commerce (CM), PNC Financial Services Group (PNC), and ING Groep NV (ING) round out CFRA’s top 10 picks, each offering strong upside potential ranging from 23.6% to 33.7%. These banks benefit from diversified operations, solid balance sheets, and favourable industry trends.
Final Thoughts
Investors looking to capitalize on bank stocks in 2026 should weigh these opportunities carefully. While the sector shows strength, particularly in net interest margin expansion and investment banking recovery, vigilance regarding market risks—especially in private credit—remains essential. Selecting well-positioned, fundamentally sound banks, as identified by CFRA analysts, will be key for navigating the year ahead.
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