10 of the Best Bank Stocks to Buy for 2026
By Wayne Duggan | Edited by Jordan Schultz | April 9, 2026
Investors looking at the banking sector for 2026 are finding a landscape marked by resilience, opportunity, and some caution. With recent shifts in regulatory policies and steady economic indicators, analysts expect growth in bank earnings and market activities that favor financial institutions. However, certain risks, such as potential disruptions in the private credit markets, underscore the importance of selecting bank stocks judiciously.
Federal Reserve Asset Cap Removal Boosts Wells Fargo
A pivotal development in the banking sector is the Federal Reserve’s removal of Wells Fargo’s asset cap in June 2025—a restriction that had been limiting the bank’s growth since 2018. This regulatory relief allows Wells Fargo to pursue more aggressive expansion strategies to reclaim market share and improve returns. Analyst Alexander Yokum highlights that Wells Fargo is positioned to significantly enhance its return on tangible common equity, with targets of 17% to 18% in the medium term.
Banking Sector Outlook and Market Sentiment
Bank stocks have demonstrated resilient earnings growth so far in 2026. The support from the Trump administration, which favors policies beneficial to the financial sector, has been a favorable backdrop. Should yield curves steepen, banks may realize improved net interest margins, further boosting profitability. Additionally, a rebound in investment banking activity is anticipated by many analysts.
Nevertheless, cautious optimism prevails due to potential pressures from emerging issues in private credit markets, which could pose risks to financial stability if they materialize.
Top 10 Bank Stocks to Watch in 2026
Based on analysis from CFRA as of April 8, 2026, the following banks have been identified as the best picks for investors seeking upside potential in the banking sector:
| Bank | 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 based on CFRA analyst price targets compared to closing prices on April 8, 2026. ### Individual Bank Highlights
JPMorgan Chase & Co. (JPM)
With around $4 trillion in assets, JPMorgan Chase remains one of the world’s largest financial services firms. Analyst Kenneth Leon emphasizes the bank’s prospects are tied to the broader U.S. economy. JPMorgan is expected to gain market share and boost fee-related income in investment banking and asset management. Strong capital market activity supported by government policies is forecasted to sustain growth. CFRA rates JPM stock as a “buy” with a $340 price target (closed at $307.97).
Bank of America Corp. (BAC)
Bank of America benefits from positive consumer spending trends, which bolster its credit card income. Strong underwriting and merger and acquisition activities are projected to drive earnings. The bank’s well-diversified balance sheet shows no significant credit risk, strengthening its outlook. CFRA assigns a “buy” rating with a $65 target (closed at $51.88).
HSBC Holdings PLC (HSBC)
Operating in over 60 countries, HSBC showcases positive operational momentum with successful transformation efforts. The bank is Asia’s leading transaction banking and wealth management franchise. Its cost management and capital restoration initiatives enable share buybacks and aim for at least a 17% return on equity. CFRA’s price target is $108, with the stock closing at $90.27. Wells Fargo & Co. (WFC)
Following the asset cap removal, Wells Fargo is expected to accelerate growth and recover lost market share. The bank is targeting a return on tangible common equity of 17-18%. Analysts are optimistic about Wells Fargo’s medium-term performance. CFRA rates WFC as a buy with a target of $118 (closed at $84.66).
Royal Bank of Canada (RY)
Canada’s largest commercial bank, Royal Bank of Canada, benefits from successful merger integrations, credit improvement, and U.S. market growth via its acquisition of City National. These factors contribute to a potential return on equity of 18% or more. CFRA sets a price target of $223, with the stock closing at $169.47. Citigroup Inc. (C)
Citigroup has successfully implemented its turnaround plan, shedding non-core assets to streamline operations. The bank’s focus on global wealth and corporate treasury services positions it well to capitalize on cross-border institutional banking growth. CFRA’s buy rating comes with a target of $140 (closed at $123.49).
ICICI Bank Ltd. (IBN)
One of India’s leading retail and corporate banks, ICICI Bank has demonstrated strong earnings and superior return on equity compared to Indian peers. Though growth is expected to moderate, the bank’s retail banking strength and expanding business banking segment position it well for maintaining profitability.
Conclusion
As confidence gradually returns to the banking sector, investors eye specific bank stocks with strong fundamentals, growth prospects, and strategic positioning. The top 10 bank stocks listed by CFRA combine domestic and international banking powerhouses with promising growth trajectories for 2026. Careful stock selection, backed by sound analysis, remains crucial in navigating potential risks ahead.
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