10 Best Bank Stocks to Buy for 2026
By Wayne Duggan | Edited by Jordan Schultz | April 9, 2026
As investors look ahead to 2026, bank stocks continue to attract attention thanks to a mix of resilient earnings growth, supportive government policies, and potential improvements in net interest margins. According to recent analysis by CFRA, selecting the right bank stocks will be crucial for investors aiming to capitalize on the financial sector’s opportunities amidst ongoing economic uncertainties.
Positive Trends and Outlook for Bank Stocks
Bank earnings have remained resilient so far in 2026. The Trump administration’s favorable stance toward the financial sector is seen as a tailwind, encouraging capital market activity and supporting investment banking businesses. Additionally, steepening yield curves could bolster banks’ net interest margins, improving profitability.
However, some concerns remain. Analysts are monitoring potential risks in the private credit market that could pose challenges to the financial sector’s overall stability. Despite this, a rebound in investment banking is expected, and many banks are positioned to regain and expand their market share.
Top 10 Bank Stocks with Strong Upside Potential in 2026
CFRA’s analysts have identified 10 bank stocks with significant upside potential, based on data as of April 8, 2026. Below is a summary of these banks and the key factors driving their outlooks:
1. Wells Fargo & Co. (WFC) – Upside Potential: 39.3%
In June 2025, the Federal Reserve lifted the asset cap that had limited Wells Fargo’s growth since 2018. This regulatory relief allows Wells Fargo to pursue aggressive growth strategies and reclaim lost market share. Analyst Alexander Yokum is optimistic about the bank improving its return on tangible common equity, targeting 17%-18% in the medium term.
Closing Price (April 8): $84.66; Price Target: $118
2. Canadian Imperial Bank of Commerce (CM) – Upside Potential: 33.7%
As a major Canadian bank with strong performance, CIBC is well-placed to benefit from improving credit conditions and strategic initiatives to enhance profitability.
3. Royal Bank of Canada (RY) – Upside Potential: 31.5%
The largest bank in Canada, RBC benefits from operations in both Canada and the U.S. Analyst Yokum highlights RBC’s solid handling of challenging environments and synergy gains from acquisitions like City National. The U.S. market has acted as a growth catalyst, diversifying the bank’s revenue and improving its overall return on equity.
Closing Price (April 8): $169.47; Price Target: $223
4. PNC Financial Services Group Inc. (PNC) – Upside Potential: 31.3%
PNC is a major U.S. financial institution poised to benefit from strong net interest income growth and sustained economic activity.
5. ICICI Bank Ltd. (IBN) – Upside Potential: 27.2%
One of India’s leading banks, ICICI Bank has posted strong earnings growth and outpaced many Indian peers in terms of return on equity. While some slowing is anticipated, the bank’s robust retail banking franchise remains a strength.
6. Bank of America Corp. (BAC) – Upside Potential: 25.2%
BoA’s diverse operations in commercial banking, investment banking, and wealth management benefit from positive U.S. consumer spending trends. The bank has no significant credit issues and is poised for growth in net interest and investment banking income.
Closing Price (April 8): $51.88; Price Target: $65
7. ING Groep NV (ING) – Upside Potential: 23.6%
ING’s international presence and focus on digital banking position it well for steady growth in global markets.
8. HSBC Holdings PLC (HSBC) – Upside Potential: 19.6%
Operating in over 60 countries, HSBC has demonstrated solid operational momentum and is on track with its strategic transformation efforts. The bank aims for cost containment, capital restoration, and a return on equity of at least 17%.
Closing Price (April 8): $90.27; Price Target: $108
9. Citigroup Inc. (C) – Upside Potential: 13.3%
Citigroup has consolidated its operations and is capitalizing on its global wealth and corporate treasury franchises. Its focus on becoming a leading U.S. banking partner for cross-border institutional clients is expected to drive long-term growth.
Closing Price (April 8): $123.49; Price Target: $140
10. JPMorgan Chase & Co. (JPM) – Upside Potential: 10.4%
As one of the world’s largest financial service providers with about $4 trillion in assets, JPMorgan’s success closely ties to the overall U.S. economy. Analysts expect continued market share gains and strong fee income from investment banking and asset management.
Closing Price (April 8): $307.97; Price Target: $340
Conclusion
The financial sector in 2026 presents a mix of challenges and opportunities. While some risks linger, particularly in private credit markets, the outlook for major banks appears promising with many positioned for growth through diversified services, regulatory relief, and strategic initiatives. For investors, careful stock selection among these well-regarded financial institutions, as highlighted by CFRA’s analysis, could offer substantial upside over the coming year.
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This article is based on CFRA analysts’ research as of April 8, 2026, and does not constitute financial advice. Investors should perform their due diligence or consult a financial advisor before making investment decisions.