10 of the Best Bank Stocks to Buy for 2026: Analysts Highlight Top Picks with Strong Upside Potential
As 2026 approaches, investors are keenly assessing the banking sector for promising stock opportunities. Favorable economic forecasts, regulatory environments, and potential growth in loan activity have set the stage for certain banks to outperform. However, risks such as tariff uncertainties and rising consumer debt levels remain. According to a recent analysis by CFRA and insights from financial experts, here are 10 of the best bank stocks to consider adding to your portfolio for the coming year.
Market Outlook for 2026 Banking Stocks
Analysts expect solid economic growth in 2026, which could support strong loan growth across banking institutions. Investment banks are hopeful for a resurgence in mergers and acquisitions (M&A), enhancing their fee-based revenue streams. Despite these positive catalysts, concerns linger over policy uncertainties and economic pressures that might introduce credit risks, especially if the U.S. economy experiences a downturn.
Given this backdrop, careful stock selection becomes paramount for investors aiming to capitalize on sector opportunities while managing exposure to potential risks. CFRA has identified 10 undervalued bank stocks showing promising upside potential from their recent price levels as of November 10, 2025. ### Top 10 Bank Stocks and Their Upside Potential
| Bank | Ticker | Upside Potential* |
|---|---|---|
| JPMorgan Chase & Co. | JPM | 7% |
| Bank of America Corp. | BAC | 9% |
| Wells Fargo & Co. | WFC | 28% |
| Royal Bank of Canada | RY | 23% |
| Citigroup Inc. | C | 8% |
| Canadian Imperial Bank of Commerce | CM | 12% |
| ING Groep NV | ING | 14% |
| Barclays PLC | BCS | 8% |
| PNC Financial Services Group Inc. | PNC | 27% |
| NatWest Group PLC | NWG | 11% |
*Upside potential calculated from November 10 closing prices.
Highlights on Select Banks
JPMorgan Chase & Co. (JPM)
As one of the largest global financial institutions with roughly $4 trillion in assets, JPMorgan’s revenue is closely tied to the U.S. economy, which makes up about 75% to 80% of its business. Analyst Kenneth Leon emphasizes the bank’s strong credit quality and anticipates continued positive momentum from IPOs and M&A activities in 2026. CFRA holds a “buy” rating with a $340 price target, compared to its $316.89 close on Nov. 10. Bank of America Corp. (BAC)
Bank of America benefits from diverse business lines spanning consumer banking, wealth management, and investment banking. Its recent quarters have shown robust revenue and operating income growth, underpinned by resilient consumer activity. Leon notes that this diversification reduces investor risk, with CFRA rating BAC as “buy” and setting a $58 target against a closing price of $53.42. Wells Fargo & Co. (WFC)
Wells Fargo’s prospects have brightened following the Federal Reserve’s mid-2025 removal of its punitive asset cap. Analyst Alexander Yokum expects the bank’s return on tangible common equity to approach its long-term goal of 17%-18% next year. This regulatory relief is seen as transformational, fostering growth and enhanced market share. CFRA recommends Wells Fargo stock with a “buy” rating and a $110 price target, compared with its $86.10 recent close.
Royal Bank of Canada (RY)
Canada’s largest commercial bank, RY, including its U.S.-based subsidiary City National, has demonstrated strong resilience through economically challenging periods. Yokum projects return on equity rising above 17% through acquisition integration and expansion in U.S. transaction banking, which offers capital-efficient growth. CFRA rates RY as “buy” with a target price of $180 versus a closing price of $146.89. Citigroup Inc. (C)
Citigroup has successfully restructured and streamlined its operations, notably exiting the Mexican consumer market in 2025. With market-leading capabilities in banking technology, treasury services, and global wealth management, Citigroup is positioned to grow in institutional markets. Leon cites the bank’s strong balance sheet and adaptability to economic shifts. CFRA rates Citigroup “buy” with a $110 target, above its current $101.49 price.
Other Noteworthy Bank Stocks
- Canadian Imperial Bank of Commerce (CM) has improved its risk profile by reducing exposure to U.S. commercial real estate and focuses on growth in capital markets.
- ING Groep NV (ING) in the Netherlands shows strong momentum thanks to its digital banking technologies, disciplined cost management, and a solid lending growth trajectory.
- Barclays PLC (BCS) in the U.K. combines reliable financial performance with cost discipline and improving returns on equity.
- PNC Financial Services Group Inc. (PNC) and NatWest Group PLC (NWG) round out the list with solid upside potential and strategic market positions.
Conclusion
For investors looking to strengthen their portfolios with quality bank stocks in 2026, these 10 stand out based on analyst research and market fundamentals. While economic and geopolitical uncertainties persist, the potential for loan growth, improved regulation, and rising fee income presents a compelling case for these banking equities.
As always, investors should perform their due diligence or consult a financial advisor before making investment decisions. Bank stocks can offer growth and dividend income, but they also come with cyclical risks tied to economic conditions.
This article is based on data available as of November 11, 2025, and reflects the assessments by CFRA and associated financial analysts.