10 of the Best Bank Stocks to Buy for 2026
Analysts see big upside for these undervalued bank stocks
By Wayne Duggan
Edited by Jordan Schultz
April 9, 2026, 4:26 p.m.
Bank stocks have attracted cautious optimism from investors and analysts as 2026 unfolds. With recent regulatory changes and steady economic conditions supporting growth, several banking institutions are poised for notable appreciation in market value. This article highlights 10 of the best bank stocks to consider buying in 2026, based on CFRA analyst recommendations and price target projections as of early April.
Positive Industry Outlook
The removal of asset restrictions, resilient earnings growth, and favorable policy tailwinds contribute to a promising outlook for bank stocks this year. For instance, in June 2025, the Federal Reserve lifted the punitive asset cap on Wells Fargo, enabling the company to pursue more aggressive growth strategies and recapture lost market share.
Investor sentiment is buoyed by expectations that steeper yield curves could improve banks’ net interest margins, while rebounds in investment banking activity are anticipated. However, underlying concerns remain about a possible crisis in the private credit market, injecting a note of caution among some market participants.
Top 10 Bank Stocks to Watch in 2026
Below are the 10 bank stocks with the highest upside potential as identified by CFRA analysts, listed with their potential price appreciation based on April 8 closing prices and price targets:
| Stock Name | 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% |
Detailed Analyst Insights
JPMorgan Chase & Co. (JPM)
JPMorgan Chase is a leading global financial powerhouse with approximately $4 trillion in assets. Analyst Kenneth Leon highlights the bank’s strong ties to the broader U.S. economy and anticipates continued market share gains and robust fee income from investment banking and asset management operations. Backed by supportive administration policies and favorable capital markets activity, JPMorgan holds a “buy” rating with a $340 price target versus a recent closing price of $307.97. Bank of America Corp. (BAC)
As a major player in U.S. commercial banking and wealth management, Bank of America benefits from positive consumer spending trends and consistent economic growth. Leon expects net interest income to grow and anticipates a healthy pipeline of underwriting and merger & acquisition (M&A) business in 2026. The bank’s diversified balance sheet shows no notable credit risk concerns. BAC is rated a “buy” with a $65 target, up from $51.88 per share.
HSBC Holdings PLC (HSBC)
Operating across more than 60 countries, HSBC is one of the largest global banking institutions. Firdaus Ibrahim praises HSBC’s successful strategic transformation and its leadership in Asia’s transaction banking and wealth management sectors. The company’s disciplined cost growth, ongoing simplification, and capital restoration efforts position it for future buybacks and continued return on equity improvement. HSBC holds a “buy” with a $108 price target against its $90.27 closing price.
Wells Fargo & Co. (WFC)
Wells Fargo, primarily focused on the U.S. lending market, has benefited from the lifting of the Federal Reserve’s asset cap in mid-2025. Analyst Alexander Yokum projects that Wells Fargo will resume growth initiatives and restore market share while boosting its return on tangible common equity to 17-18% medium term. WFC is rated a “buy” with a $118 target, up from $84.66 per share.
Royal Bank of Canada (RY)
The largest Canadian commercial bank, Royal Bank of Canada (RBC) has successfully navigated challenging economic terrain and expanded its U.S. presence through City National. Yokum highlights merger synergies and credit improvements as key growth drivers, with a return on equity target of at least 18%. RBC is recommended as a “buy” with a $223 target versus recent price of $169.47. Citigroup Inc. (C)
Citigroup has delivered on its turnaround strategy, including the divestiture of its Mexican consumer banking operations to streamline focus. Kenneth Leon notes Citigroup’s leadership in global wealth and corporate treasury services, aiming to become the premier U.S. partner in cross-border institutional banking. The firm maintains a “buy” rating with a $140 target and a recent closing price of $123.49. ICICI Bank Ltd. (IBN)
A leading Indian financial institution with a strong retail banking franchise, ICICI Bank has outperformed many peers in return on equity since fiscal 2023. Although earnings growth may moderate in fiscal years 2026 and 2027, its retail banking segment remains robust, supporting a positive outlook from analyst Siti Salikin.
Conclusion
Selecting the right bank stocks will be a critical strategy for investors seeking to capitalize on the evolving financial landscape in 2026. The combination of supportive economic indicators, regulatory relief for key banks, and broad earnings resilience makes this a strategic time to consider adding banking shares to portfolios.
Investors should remain mindful of emerging risks such as the private credit market crisis while positioning themselves to benefit from sector rebounds and growth.
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