10 of the Best Bank Stocks to Buy for 2026
April 9, 2026 — Investors looking to bolster their portfolios with financial sector stocks have a promising list to consider as the year unfolds. Analysts at CFRA highlight ten undervalued bank stocks with strong upside potential for 2026, owing to resilient earnings growth, supportive regulatory environments, and strategic transformations across major banks globally.
Banking Sector Outlook
The banking industry has demonstrated remarkable resilience in recent quarters. Despite concerns over potential risks in the private credit market, many banks have maintained steady earnings growth. The removal of certain regulatory constraints, such as the Federal Reserve’s lifting of Wells Fargo’s asset cap in mid-2025, has renewed optimism about growth prospects.
Additionally, macroeconomic factors like a potentially steepening yield curve could improve banks’ net interest margins, boosting profitability. The upcoming year is also expected to see a rebound in investment banking activities, supported by encouraging policy measures from the current administration.
Top 10 Bank Stocks to Watch
Here is a detailed look at the ten bank stocks that CFRA analysts recommend as strong investment candidates for 2026, based on price targets relative to their 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 | 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 April 8, 2026, closing prices and analysts’ price targets.
Featured Stock Insights
Wells Fargo & Co. (WFC)
Wells Fargo is poised for significant growth in 2026 following the June 2025 removal of its Federal Reserve–imposed asset cap. This change is expected to enable Wells Fargo to resume offensive growth strategies and reclaim market share. Analyst Alexander Yokum highlights the bank’s potential to improve its return on tangible common equity to between 17% and 18% in the medium term. The current price target for WFC is $118, compared to the $84.66 close on April 8. Canadian Imperial Bank of Commerce (CM) and Royal Bank of Canada (RY)
Canadian banks are also strongly favored. Royal Bank of Canada, the largest commercial bank in the country, benefits from its U.S. subsidiary City National, which provides diversification and growth opportunities. Yokum emphasizes Royal Bank’s strong return on equity prospects and synergies from mergers and credit improvements. CM is similarly well positioned with a 33.7% upside forecast.
Bank of America Corp. (BAC)
Bank of America’s broad commercial, investment, and wealth management services have benefited from robust U.S. consumer spending and a steady economy. Analyst Kenneth Leon expects net interest income growth and active investment banking in 2026, supported by a well-diversified balance sheet without credit issues. The target price for BAC is $65, well above its closing price of $51.88. JPMorgan Chase & Co. (JPM)
As one of the world’s largest financial services firms with approximately $4 trillion in assets, JPMorgan’s outlook is closely tied to the strength of the U.S. economy. Analysts forecast continued market share expansion and increased fee income, especially in investment banking and asset management. JPMorgan benefits from administration policies encouraging capital market activity, with a target of $340 compared to a $307.97 closing price.
HSBC Holdings PLC (HSBC)
With a global footprint spanning more than 60 countries, HSBC is experiencing positive momentum from successful strategic transformations and cost-management initiatives. The bank’s strength in Asia—particularly in transaction banking and wealth management—positions it well for 2026 growth. The stock’s price target stands at $108, up from recent trading levels around $90. Citigroup Inc. (C)
Citigroup continues its turnaround by streamlining operations and divesting non-core assets, such as its Mexican consumer banking unit. The bank aims to dominate cross-border institutional banking and improve global wealth and corporate treasury services. Its target price of $140 reflects confidence in its strategy and growth prospects.
ICICI Bank Ltd. (IBN)
ICICI Bank, one of India’s leading financial institutions, combines strong retail banking with expanding corporate services. While earnings growth may moderate compared to previous years, ICICI’s robust retail segment should maintain profitability. The stock is projected to grow 27.2% from current levels.
Conclusion
The banking sector presents compelling opportunities in 2026, especially with institutions that have navigated regulatory challenges, executed strategic initiatives, and capitalized on favorable economic trends. Investors are advised to focus on fundamentally strong banks with clear growth prospects, as highlighted by the CFRA analysts.
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Note: This article uses market data as of April 8, 2026. Investors should conduct their own due diligence before making investment decisions.