10 of the Best Bank Stocks to Buy for 2026
By Wayne Duggan | Edited by Jordan Schultz | April 9, 2026
As investors look ahead to 2026, many are considering the financial sector a promising area for growth, despite some clouds on the horizon. Bank stocks, in particular, are garnering attention from analysts who see significant upside potential for several undervalued players in the industry. This article reviews the top 10 bank stocks recommended by CFRA analysts based on recent market data and expert insights.
Market Context for Bank Stocks in 2026
Bank stocks have demonstrated resilient earnings growth thus far in 2026. Supportive government policies, including those from the current Trump administration, are fostering a favorable environment for capital markets. If yield curves steepen, banks may see improved net interest margins—an important measure of profitability. Moreover, analysts predict a recovery in investment banking, an area that had faced headwinds in recent years.
However, caution is warranted. The private credit market shows signs of potential stress, which could pose risks to financial institutions. Given these mixed signals, selecting the right bank stocks is essential for investors aiming to capitalize on growth opportunities while managing risk.
Federal Reserve’s Impact: Wells Fargo’s Growth Prospects
A notable development is the Federal Reserve’s removal of the asset cap on Wells Fargo, which had been in place since 2018. This regulatory relief allows Wells Fargo to pursue aggressive growth strategies once again and regain lost market share. Analysts are optimistic about Wells Fargo’s ability to improve its return on tangible common equity, targeting a medium-term goal of 17% to 18%.
The 10 Best Bank Stocks to Buy for 2026
According to CFRA, here are the 10 bank stocks with the most promising upside, along with their estimated price appreciation potential based on April 8 closing prices:
| Stock | 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% |
*Upside potential is based on CFRA analysts’ price targets as of April 8, 2026. —
Stock Highlights and Analyst Insights
1. Wells Fargo & Co. (WFC)
Wells Fargo is poised for a comeback following the Federal Reserve’s asset cap removal in mid-2025. Analyst Alexander Yokum highlights Wells Fargo’s potential to regain market share and significantly enhance its return on equity. CFRA assigns a “buy” rating with a $118 price target, while the stock traded at $84.66 as of April 8. #### 2. Canadian Imperial Bank of Commerce (CM)
The Canadian Imperial Bank of Commerce is rated highly for upside potential (33.7%). It benefits from a strong domestic Canadian market and strategic initiatives designed to improve profitability.
3. Royal Bank of Canada (RY)
As Canada’s largest commercial bank and parent company of City National in the U.S., Royal Bank of Canada is seeing benefits from its diversified revenue streams. Analyst Yokum notes its superior return-on-equity potential and growth opportunities in the U.S. market. CFRA has a buy rating and a $223 price target; the stock closed at $169.47. #### 4. PNC Financial Services Group Inc. (PNC)
PNC is well-positioned with diverse financial services and steady growth prospects, showing potential to deliver returns comparable with its Canadian and U.S. peers.
5. ICICI Bank Ltd. (IBN)
One of India’s leading banks, ICICI has demonstrated strong earnings growth and robust retail banking services. While analyst Siti Salikin anticipates some slowing of earnings growth in fiscal years 2026 and 2027, ICICI’s competitive positioning remains strong.
6. Bank of America Corp. (BAC)
Bank of America remains a powerhouse in both commercial and investment banking. Positive consumer spending trends support its credit card business, while predicted ongoing underwriting and merger activity will benefit investment banking operations. CFRA rates BAC as a buy at a $65 price target versus its $51.88 closing price.
7. ING Groep NV (ING)
ING is recognized for its strong position in European banking markets and stable growth outlook.
8. HSBC Holdings PLC (HSBC)
Operating in over 60 countries, HSBC is Asia’s leading transaction banking and wealth management franchise. It has made significant strategic progress including cost controls and capital restoration, enabling stock buybacks. Analyst Firdaus Ibrahim notes HSBC is on track to meet goals including a 17% return on equity. CFRA’s price target is $108, with the stock at $90.27. #### 9. Citigroup Inc. (C)
Citigroup continues to execute its turnaround strategies, including operational streamlining after divesting its Mexican consumer banking unit. The bank aims to grow its leading global wealth management and corporate treasury services franchises. CFRA’s buy rating comes with a $140 price target, with the stock last trading at $123.49. #### 10. JPMorgan Chase & Co. (JPM)
As one of the world’s largest financial services firms, JPMorgan’s success is closely linked to U.S. economic conditions. Analyst Kenneth Leon anticipates JPMorgan will continue gaining market share and expanding fee-based income. CFRA’s buy rating has a $340 price target; the stock closed at $307.97. —
Conclusion: Strategic Bank Stock Selection for 2026
While the overall outlook for bank stocks remains cautiously optimistic, informed stock selection will be critical for investors in 2026. Factors such as regulatory changes, economic growth, and market dynamics will shape bank performance in the months ahead. The highlighted 10 bank stocks combine strong fundamentals, growth potential, and strategic positioning recommended by leading analysts at CFRA.
Investors interested in capitalizing on the evolving financial sector are encouraged to consider these bank stocks as part of a diversified portfolio in 2026. —
For more insights on investment opportunities and stock market trends, subscribe to U.S. News’ Invested newsletter.