10 Best Bank Stocks to Buy for 2026: Analysts Highlight Top Picks Amid Promising Economic Outlook
As investors prepare for 2026, analysts at CFRA have identified 10 of the best bank stocks to consider buying, citing solid economic growth and a favorable regulatory landscape that could drive impressive loan growth and profitability for the banking sector. While the banking industry faces challenges like tariff uncertainties and rising consumer debt, selective investment in undervalued banks with strong fundamentals could yield significant upside.
Key Drivers for Bank Stocks in 2026
Heading into the new year, the banking sector may benefit from a combination of factors: ongoing economic expansion, potential rebounds in mergers and acquisitions (M&A) activity boosting investment banking fee revenues, and an easing of regulatory pressures. However, concerns remain over inflation, consumer delinquency rates, and geopolitical uncertainties, suggesting the importance of careful bank stock selection.
Top 10 Bank Stocks with Upside Potential
Analysts from CFRA compiled a list of 10 bank stocks showing promising upside potential based on recent valuations and growth prospects as of November 10, 2025. Below is the list with their projected upside from recent closing prices:
- Wells Fargo & Co. (WFC): 28%
- PNC Financial Services Group Inc. (PNC): 27%
- Royal Bank of Canada (RY): 23%
- Canadian Imperial Bank of Commerce (CM): 12%
- NatWest Group PLC (NWG): 11%
- Bank of America Corp. (BAC): 9%
- Citigroup Inc. (C): 8%
- Barclays PLC (BCS): 8%
- JPMorgan Chase & Co. (JPM): 7%
- ING Groep NV (ING): 14%
Highlights on Select Bank Stocks
JPMorgan Chase & Co. (JPM)
As one of the largest global financial services firms with nearly $4 trillion in assets, JPMorgan’s 2026 performance is closely tied to the health of the U.S. economy and capital markets, which account for 75% to 80% of its revenue. Anticipated continued growth in initial public offerings (IPOs) and M&A activity should benefit the bank’s robust investment banking segment. Analyst Kenneth Leon praises JPMorgan’s pristine credit quality as a key differentiator and assigns it a "buy" rating with a $340 price target, above its Nov. 10 closing price of $316.89. Bank of America Corp. (BAC)
Bank of America benefits from resilient U.S. consumers and strong diversification across wealth management, consumer banking, and investment banking. The bank has demonstrated impressive revenue growth, supported by rising net interest income and noninterest income. CFRA analyst Leon cites the bank’s diversified business model as reducing investment risk. BAC holds a "buy" rating with a $58 price target compared to its recent close of $53.42. Wells Fargo & Co. (WFC)
Wells Fargo, heavily focused on the U.S. lending market, is poised for a return to growth following the Federal Reserve’s removal of its punitive asset cap in mid-2025. Analyst Alexander Yokum expects Wells Fargo’s return on tangible common equity to improve toward its 17-18% long-term target as regulatory pressures ease. CFRA maintains a "buy" rating with a $110 price target against its $86.10 closing price.
Royal Bank of Canada (RY)
As Canada’s largest bank with expanding U.S. operations via City National Bank, Royal Bank of Canada has a track record of successfully navigating economic downturns. Yokum forecasts returns on equity climbing above 17% fueled by acquisitions and increased U.S. market share. RY has a "buy" rating and a $180 price target, with a recent price near $146.89. Citigroup Inc. (C)
Having executed restructuring initiatives effectively, Citigroup is well positioned for institutional growth, focusing on global banking technology platforms and treasury services. Disposing of less profitable segments such as its Mexican consumer banking business has streamlined operations. Leon notes Citigroup’s strong balance sheet and flexibility as advantages amid economic volatility. CFRA rates it as a "buy" with a $110 target, compared to the recent $101.49 market price.
Additional Noteworthy Picks
Canadian Imperial Bank of Commerce (CM) is improving its risk profile by reducing exposure to U.S. commercial real estate and leveraging stable residential mortgage portfolios. ING Groep NV (ING) from the Netherlands stands out for its digital banking momentum and disciplined cost management aiming for a 14% return on equity by 2027. Barclays PLC (BCS) offers consistent financial performance and robust capital returns within the U.K. market.
Outlook for Bank Investors
While some uncertainties remain, notably around trade policies and inflationary pressures, the overall economic and regulatory environment appears conducive to bank growth in 2026. Investors are advised to focus on banks with strong credit quality, diversified revenue streams, and strategic market positions. CFRA’s top 10 list offers a starting point for navigating the banking landscape as the year approaches.
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Article by Wayne Duggan, reviewed by John Divine
Published November 11, 2025, 12:52 p.m. ET