Discover 10 Undervalued Bank Stocks Poised for Growth in 2026

10 Best Bank Stocks to Buy for 2026: Analysts Highlight Strong Upside Potential

As investors look ahead to 2026, bank stocks are garnering significant attention due to anticipated solid economic growth and a supportive regulatory environment. According to financial analysis from CFRA featured by U.S. News, several bank stocks are poised for impressive gains next year. Despite some lingering economic uncertainties, including concerns about tariffs, inflation, and rising consumer debt, select banks are well-positioned to thrive and deliver strong returns to investors.

Economic and Market Outlook for Banks in 2026

Analysts expect that a growing economy and a regulatory climate favorable to financial institutions could enable banks to see impressive loan growth in 2026. Additionally, a potential resurgence in mergers and acquisitions (M&A) deals is likely to boost fee revenues for investment banks. On the downside, issues such as trade tensions related to the Trump administration’s tariff policies and inflationary pressures could elevate credit risks for some banks, especially if the U.S. economy veers toward a recession.

Given these dynamics, picking the right bank stocks will be crucial for investors aiming to capitalize on market opportunities next year.

Ten Bank Stocks with Strong Upside Potential

CFRA’s recent analysis identified ten leading bank stocks with compelling upside potential, based on market conditions as of November 10, 2025. Below is a summary of these banks, their characteristics, and analyst insights:

1. JPMorgan Chase & Co. (JPM)

   • Upside Potential: 7%
   • As one of the world’s largest financial services firms with approximately $4 trillion in assets, JPMorgan’s fortunes largely depend on the U.S. economy, which drives 75-80% of its revenue. The bank expects continued positive momentum in IPOs and M&A for 2026. Known for pristine credit quality, CFRA maintains a “buy” rating with a $340 price target.

2. Bank of America Corp. (BAC)

   • Upside Potential: 9%
   • Bank of America benefits from a resilient U.S. consumer base and boasts strong earnings growth with rising net interest and noninterest income. Its diversified banking model — spanning wealth management, consumer banking, and investment banking — reduces investor risk. CFRA rates BAC as a “buy” with a $58 price target.

3. Wells Fargo & Co. (WFC)

   • Upside Potential: 28%
   • Wells Fargo, a major U.S. lender, is poised to boost returns on tangible common equity as it approaches long-term targets of 17-18%. The removal of the Federal Reserve’s asset cap in mid-2025 is expected to dramatically improve investor sentiment and open doors to renewed growth and regulatory easing. CFRA’s price target is $110 with a “buy” rating.

4. Royal Bank of Canada (RY)

   • Upside Potential: 23%
   • Canada’s largest commercial bank, also owning City National Bank in the U.S., Royal Bank of Canada has shown resilience through economic challenges. Analysts expect returns on equity to exceed 17% as acquisitions are integrated and U.S. transaction banking expands. CFRA assigns a “buy” rating and $180 price target.

5. Citigroup Inc. (C)

   • Upside Potential: 8%
   • Citigroup has executed effective restructuring and is well-positioned to capitalize on institutional market growth. The bank leads in banking technology platforms, treasury services, and global wealth management. Its 2025 exit from the Mexican consumer segment streamlined operations further. CFRA’s rating is “buy” with a $110 target.

6. Canadian Imperial Bank of Commerce (CM)

   • Upside Potential: 12%
   • With a growing U.S. presence, Canadian Imperial has improved its risk profile by reducing exposure to volatile commercial real estate loans. The bank’s focus on residential mortgages and capital markets positions it to maintain asset quality and limit loan losses. CFRA’s price target is $96, rating the stock as a “buy.”

7. ING Groep NV (ING)

   • Upside Potential: 14%
   • The Netherlands-based ING combines banking, insurance, and asset management. Its digital banking capabilities, funding resilience, and cost management support its path to a 14% return on equity by 2027. Analysts note diversification and fee income growth stabilize earnings. CFRA has a “buy” rating and $30 target price.

8. Barclays PLC (BCS)

   • Upside Potential: 8%
   • One of the United Kingdom’s largest financial institutions, Barclays is noted for steady financial results, disciplined costs, robust capital returns, and improved returns on tangible equity. The bank offers an attractive profile for banking investors, with CFRA favoring a “buy” stance.

9. PNC Financial Services Group Inc. (PNC)

   • Upside Potential: 27%
   • Details on PNC from the summary are limited, but its robust potential suggests it is well-positioned to grow amid favorable market conditions.

10. NatWest Group PLC (NWG)

    • Upside Potential: 11%
    • Similarly, NatWest shows substantial promise as it navigates economic growth and regulatory landscapes, drawing interest from investors.

Investor Takeaway

With the banking sector expected to benefit from economic tailwinds, regulatory relief, and stronger M&A activity, these ten banks stand out for investors looking for growth in 2026. However, due diligence is essential given the macroeconomic uncertainties. CFRA’s “buy” ratings and price targets provide a useful guide for investors seeking exposure to bank stocks with strong fundamentals and upside potential.

This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own research or consult financial advisors before making investment decisions.