5 Best American Bank Stocks To Buy According to Analysts

In this piece, we will take a look at the five best American bank stocks to buy according to analysts. If you want to find out all the latest news about American bank stocks then skip ahead to 12 Best American Bank Stocks To Buy According to Analysts.

5. Bank OZK (NASDAQ:OZK)

Average Analyst Share Price Target Upside: 24%

Average Share Price Target: $52.7

Bank OZK (NASDAQ:OZK) is an Arkansas based retail and commercial bank. Despite the regional banking sector becoming quite fearsome last year, for Bank OZK (NASDAQ:OZK) it was “business as usual” according to its CEO as the bank posted a record net income of $674 million for the year.

Insider Monkey’s Q3 2023 survey of 910 hedge funds outlined that 24 had held a stake in the bank. Bank OZK (NASDAQ:OZK)’s biggest hedge fund stakeholder is Peter Rathjens, Bruce Clarke, and John Campbell’s Arrowstreet Capital due to its $69 million investment.

4. Webster Financial Corporation (NYSE:WBS)

Average Analyst Share Price Target Upside: 25%

Average Share Price Target: $58.86

Webster Financial Corporation (NYSE:WBS) is a Stamford, Connecticut based regional bank that serves the needs of both businesses and individuals. Its shares are rated Strong Buy on average, and the $58.86 average share price target prices in a hefty 25% share price upside.

By the end of September 2023, 33 out of the 910 hedge funds polled by Insider Monkey were Webster Financial Corporation (NYSE:WBS)’s shareholders. Ric Dillon’s Diamond Hill Capital was the biggest investor as it owned 2.8 million shares that are worth $114 million.

3. Valley National Bancorp (NASDAQ:VLY)

Average Analyst Share Price Target Upside: 26%

Average Share Price Target: $11.3

Valley National Bancorp (NASDAQ:VLY) is a New York City based commercial and consumer bank with a presence in treasury and other markets as well. When we talk about financial performance, it’s one of the most troubled American bank stocks on our list since the bank has been unable to beat analyst EPS estimates in any of its four latest quarters. Unsurprisingly, Valley National Bancorp (NASDAQ:VLY)’s shares are also down by 28% er the past year.

Insider Monkey scoured through 910 hedge fund holdings for last year’s third quarter and discovered that 20 had invested in the bank. Valley National Bancorp (NASDAQ:VLY)’s biggest stakeholder among these is Ken Griffin’s Citadel Investment Group courtesy of its $33 million stake.

2. Western Alliance Bancorporation (NYSE:WAL)

Average Analyst Share Price Target Upside: 29%

Average Share Price Target: $76.09

Western Alliance Bancorporation (NYSE:WAL) is an Arizona based bank with a presence in its home state, Nevada, and California. Its investors and shares were in for some bad news during January 2024 as Wells Fargo downgraded Western Alliance Bancorporation (NYSE:WAL) to Equal Weight from Overweight. However, the shares are rated Strong Buy on average.

During September 2023, out of the 910 hedge funds covered by Insider Monkey’s research, 36 were Western Alliance Bancorporation (NYSE:WAL)’s shareholders. As for the one that held the largest stake, this hedge fund was Ken Griffin’s Citadel Investment Group as it owned $185 million worth of shares.

1. New York Community Bancorp, Inc. (NYSE:NYCB)

Average Analyst Share Price Target Upside: 98%

Average Share Price Target: $11.38

Including New York Community Bancorp, Inc. (NYSE:NYCB) in our list of the most loved American bank stocks among analysts was a tricky decision given its 45% share price drop. However, despite more than four analyst downgrades in February, the average share price target is $11.38, with a 98% upside that makes the stock hard to ignore.

35 out of the 910 hedge funds profiled by Insider Monkey were the bank’s investors as of Q3 2023 end. New York Community Bancorp, Inc. (NYSE:NYCB)’s biggest investor among these is Irving Kahn’s Kahn Brothers due to its $71.3 million investment.

Disclosure: None. You can also take a look at 13 Most Profitable Real Estate Stocks Now and Top 20 Drug Companies in the US by Revenue.

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