MW 20 bank stocks expected to rise as much as 17% during 2026
By Philip van Doorn
Regional-bank stocks trade at lower valuations than those of the largest U.S. banks
These names are among analysts' favorite U.S. bank stocks, based on ratings and price targets.
Investors' attention will be focused on the largest U.S. banks this week. The six largest players will all report fourth-quarter results, starting with JPMorgan Chase early Tuesday, followed by Bank of America, Citigroup and Wells Fargo on Wednesday and then Goldman Sachs and Morgan Stanley on Thursday.
But arguments can be made that at least some of those "big six" banks are trading at high valuations relative to earnings and tangible book value. Analysts' consensus price targets show more upside potential for regional bank stocks.
Preview: As big banks kick off earnings season, these are the critical numbers to watch
To screen for analysts' favorite bank stocks, we began with a list of all 110 banks whose stocks are components of the S&P Composite 1500 Index XX:SP1500, comprised of the S&P 500 SPX, the S&P MidCap 400 Index MID and the S&P Small Cap 600 Index SML.
Among the 110 banks, these are the 20 with majority "buy" or equivalent ratings among analysts polled by LSEG, with the highest upside potential implied by consensus price targets for the stocks.
Company City Jan. 9 price Cons. price target Implied 12-month upside potential Forward P/E Price/ Tangible Book SouthState Bank Corp. Winter Haven, Fla. $97.69 $114.32 17% 10.3 2.0 Renasant Corp. Tupelo, Miss. $36.53 $42.57 17% 10.3 1.4 Dime Community Bancshares Inc. Hauppauge, N.Y. $29.94 $34.50 15% 8.5 1.2 Charles Schwab Corp. Westlake, Texas $100.17 $115.39 15% 17.2 7.0 Beacon Financial Corp. Boston $27.26 $31.33 15% 7.6 1.1 Webster Financial Corp. Stamford, Conn. $64.77 $74.12 14% 9.8 1.7 Ally Financial Inc. Detroit $45.72 $52.29 14% 8.3 1.0 Valley National Bancorp New York City $12.00 $13.71 14% 9.5 1.0 UMB Financial Corp. Kansas City, Mo. $121.54 $138.69 14% 10.5 1.7 Glacier Bancorp Inc. Kalispell, Mont. $47.19 $53.83 14% 14.9 2.7 Atlantic Union Bankshares Corp. Glen Allen, Va. $37.44 $42.44 13% 10.0 1.8 Western Alliance Bancorp Phoenix $90.11 $101.60 13% 8.6 2.0 First BanCorp San Juan, Puerto Rico $21.45 $24.17 13% 10.1 1.9 Old National Bancorp Evansville, Ind. $23.27 $26.15 12% 8.7 1.8 FB Financial Corp. Nashville, Tenn. $58.08 $65.17 12% 12.2 2.1 $Capital One Financial Corp(COF-N)$. McLean, Va. $249.20 $279.20 12% 11.7 1.7 Huntington Bancshares Inc. Columbus, Ohio $18.24 $20.42 12% 10.7 2.1 Axos Financial Inc. Las Vegas $92.35 $103.25 12% 10.4 1.7 First Bancorp Southern Pines, N.C. $53.66 $59.75 11% 11.8 1.9 U.S. Bancorp Minneapolis $55.21 $61.22 11% 11.1 2.2 Source: LSEG
Valuation ratios are to the right of the table. You might need to scroll or flip your screen to landscape to see all of the data.
The price/tangible book ratios are the banks' closing prices on Friday divided by their most recent reported tangible book value per share. Tangible book value excludes intangibles such as loan-servicing rights and deferred tax assets. The forward price/earnings ratios are Friday's prices divided by consensus earnings-per-share estimates for the next 12 months, among analysts working for brokerage and research firms polled by LSEG
For the most part, these forward P/E and price/tangible book ratios are well below those of the largest six U.S. banks.
There are exceptions, notably Citigroup (C), which trades cheapest among the largest industry players as Chief Executive Jane Frasier continues to lead that bank's push to shed less profitable units. And Schwab $(SCHW)$ is the priciest stock on the above list by both valuation ratios, reflecting its diverse business model.
Don't miss: Why 2026 could be a banner year for regional-bank stocks
-Philip van Doorn
This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
January 12, 2026 08:43 ET (13:43 GMT)
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