In this article, we will be looking at the 11 Best American Bank Stocks to Buy According to Wall Street Analysts.
On March 20, Reuters reported that most major central banks in developed markets decided to keep interest rates unchanged during the week. However, they made it clear that they are ready to take action if inflation rises due to higher energy prices caused by the ongoing conflict involving US and Israeli strikes on Iran.
Since the start of the conflict, traders have reduced their bets on interest rate cuts by the Federal Reserve this year. At the same time, they are now expecting rate increases in other regions, including from the European Central Bank and the Bank of England. Meanwhile, the Reserve Bank of Australia, which was already increasing rates, raised them again this week.
In the US, the Federal Reserve kept its rates steady in the 3.50% to 3.75% range. However, Federal Reserve Chair Jerome Powell’s hawkish tone led traders to delay their expectations for rate cuts until 2027. The Fed last reduced rates in December. Before the conflict, markets were expecting two 25-basis-point rate cuts in 2026. Now, those expectations have almost completely disappeared.
The Federal Reserve has maintained its earlier forecast of one rate cut in 2026 but now forecasts higher inflation this year than previously expected. Powell pointed out that lowering inflation will be difficult because of ongoing tariff-driven price jumps and Iran war-driven energy price hikes.
With this background in mind, let’s take a look at the 11 best American bank stocks to buy according to Wall Street analysts.
Our Methodology
To compile our list of the 11 best American bank stocks to buy according to Wall Street analysts, we used the Finviz stock screener to look for American bank stocks. We sorted our results based on market capitalization and picked the top 40 stocks. Next, we focused on the stocks that analysts believe have the most potential for growth. Finally, we ranked the 11 best American bank stocks to buy based on their average price target upside potential according to analysts as of March 23, 2026. These stocks are also popular among elite hedge funds.
Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
11 Best American Bank Stocks to Buy According to Wall Street Analysts
11. Fifth Third Bancorp (NASDAQ:FITB)
Fifth Third Bancorp (NASDAQ:FITB) is one of the best American bank stocks to buy according to Wall Street analysts. On March 17, Fifth Third Bancorp (NASDAQ:FITB) announced that it is introducing new capabilities within its mobile app to help customers better understand and manage their finances. The new features will allow users to have a clearer view of their finances and set financial goals without leaving the banking app.
According to the report by Fifth Third Bancorp (NASDAQ:FITB), users can track cash flows and spending habits through simple visual summaries, including top spending categories, largest transactions, and average daily spending. The app will also allow users to set savings goals and automate them, making it easier to stay on track. In addition, users will get insights and projected savings opportunities to help them make informed financial decisions. Fifth Third Bancorp (NASDAQ:FITB) said that it continues to invest in digital-first innovations to improve customer experiences.
In other news, on March 13, Truist lowered its price target on Fifth Third Bancorp (NASDAQ:FITB) from $60 to $53 and kept its Buy rating on the stock. This update comes as the research firm adjusts its models following conference discussions.
Fifth Third Bancorp (NASDAQ:FITB) is a bank holding company for Fifth Third Bank, offering a wide range of financial services to individuals, families, and businesses.
10. East West Bancorp, Inc. (NASDAQ:EWBC)
East West Bancorp, Inc. (NASDAQ:EWBC) is one of the best American bank stocks to buy according to Wall Street analysts. On March 3, Bank of America named its top picks in the banking sector, which included East West Bancorp, Inc. (NASDAQ:EWBC).
Bank of America also set price targets for nine financial institutions based on expected earnings for fiscal year 2026 and tangible book value estimates. For East West Bancorp, Inc. (NASDAQ:EWBC), it has a price target of $140, based on a valuation of 14 times its projected fiscal 2026 earnings and 2 times tangible book value by the end of 2026. This valuation is lower than pre-pandemic medians because of increased uncertainty around earnings and returns.
In other news, on March 2, Morgan Stanley increased its price target on East West Bancorp, Inc. (NASDAQ:EWBC) from $126 to $141 and kept its Equal Weight rating on the stock.
The research firm raised its price targets for mid-cap banks by a median of 8%. Morgan Stanley pointed out that recent strong performance means “the bar is higher from here.” The research firm said it remains positive about the sector, pointing to tailwinds from loan growth, net interest margins, and capital returns.
East West Bancorp, Inc. (NASDAQ:EWBC) is an American bank holding company. East West Bank, the company’s wholly-owned subsidiary, is the largest independent bank headquartered in Southern California, operating more than 110 locations in the US and Asia.
