10 Best Bank Stocks to Buy for 2026: Analysts Highlight Undervalued Opportunities
As investors look ahead to 2026, the banking sector shows promising potential, particularly for select bank stocks that analysts believe are undervalued with substantial upside. Despite some sector concerns, such as risks present in the private credit market, the outlook remains cautiously optimistic driven by supportive policies and resilient earnings growth.
Key Factors Influencing Bank Stocks in 2026
The Federal Reserve’s removal of the asset cap on Wells Fargo in mid-2025 now enables the bank to resume aggressive growth initiatives. Additionally, the current economic environment, including steady U.S. consumer spending and a potential steepening of yield curves, could enhance net interest margins for banks. Analysts also foresee a rebound in investment banking activity, particularly thanks to favorable regulatory and political conditions under the Trump administration, which has championed financial sector growth.
CFRA’s 10 Best Bank Stock Picks for 2026
CFRA analysts have identified ten bank stocks that stand out as strong buys for the coming year, projecting significant upside potential based on current prices and future price targets as of April 8, 2026. The top picks and their projected upside include:
- 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%
Below are highlights of key banks from this list, including analyst insights and investment considerations.
Wells Fargo & Co. (WFC)
Wells Fargo stands out with the highest projected upside at 39.3%. The Federal Reserve’s removal of a punitive asset cap implemented in 2018 paves the way for Wells Fargo to engage in more aggressive growth strategies and reclaim market share. Analyst Alexander Yokum expresses optimism regarding Wells Fargo’s ability to improve its returns on tangible common equity, targeting a medium-term return of 17% to 18%. CFRA recommends a "buy" rating with a $118 price target, against a closing price of $84.66 as of April 8. ### Canadian Imperial Bank of Commerce (CM)
Canadian Imperial Bank is noted for strong growth prospects, with CFRA projecting a 33.7% upside. It benefits from improved credit conditions and strategic initiatives that support its expansion and profitability in the Canadian banking sector.
Royal Bank of Canada (RY)
Canada’s largest commercial bank, Royal Bank of Canada, holds a 31.5% potential increase forecast. The bank leverages merger synergies and the contributions from its U.S.-based City National unit as major growth drivers. Analyst Yokum underscores the bank’s ability to deliver superior returns on equity, targeting at least 18%. The CFRA "buy" rating comes with a $223 price target versus a $169.47 closing price on April 8. ### PNC Financial Services Group Inc. (PNC)
PNC is also seen as a compelling growth opportunity, with a projected upside of 31.3%. The bank’s strong presence in both retail and commercial banking positions it well for continued gains.
ICICI Bank Ltd. (IBN)
ICICI Bank, a leading financial company in India, offers a 27.2% projected upside. Analyst Siti Salikin comments on ICICI’s strong earnings and return on equity, which have outpaced Indian peers since fiscal 2023. While earnings growth is expected to moderate through fiscal years 2026 and 2027, the bank’s robust retail banking franchise underpins its long-term investment case.
Bank of America Corp. (BAC)
One of the largest U.S. commercial and investment banks, Bank of America benefits from positive U.S. consumer spending trends and a diversified balance sheet with minimal credit risk. Analyst Kenneth Leon forecasts net interest income growth alongside healthy underwriting and merger and acquisition activity in investment banking. CFRA holds a "buy" rating with a $65 price target, from $51.88 as of April 8. ### HSBC Holdings PLC (HSBC)
Operating in over 60 countries, HSBC’s ongoing transformation has resulted in operational momentum and improved cost efficiency. Analyst Firdaus Ibrahim highlights HSBC as Asia’s leading transaction banking and wealth management franchise. Its capital restoration initiatives support share buybacks, and the bank aims for a return on equity of at least 17%. The CFRA "buy" rating comes with a $108 price target, compared to the $90.27 closing price.
Citigroup Inc. (C)
Citigroup has successfully executed a turnaround by streamlining its operations, including exiting the Mexican consumer banking market. Its global wealth management and corporate treasury services franchise provide growth opportunities, particularly by focusing on cross-border institutional banking. CFRA rates Citi a "buy," with a $140 price target versus $123.49 on April 8. ### JPMorgan Chase & Co. (JPM)
JPMorgan Chase, the largest global financial services company with nearly $4 trillion in assets, is expected to continue gaining market share and increasing fee income in investment banking and asset management. Policies encouraging capital market activity support this outlook. CFRA has a "buy" rating and $340 price target, with the stock closing at $307.97 recently.
Outlook for Bank Stock Investors in 2026
While the financial sector faces some risks, including potential stress in private credit markets, the combination of strong bank fundamentals, supportive government policy, and favorable economic trends bode well for select bank stocks. Strategic stock selection will be key, with these ten names highlighted by CFRA representing some of the best opportunities for growth and value in 2026’s banking landscape.
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Disclaimer: This article presents analysis and projections from CFRA and analysts as of April 2026. Investors should conduct their own research and consider personal financial situations before making investment decisions.