In this article, we are going to look at the 5 Best American Bank Stocks to Buy According to Wall Street Analysts. For a longer list and more details on how we picked these stocks, you can go to 11 Best American Bank Stocks to Buy According to Wall Street Analysts.
5. Axos Financial, Inc. (NYSE:AX)
Axos Financial, Inc. (NYSE:AX) is one of the best American bank stocks to buy according to Wall Street analysts. On March 9, DA Davidson reaffirmed its Buy rating on Axos Financial, Inc. (NYSE:AX) with a price target of $112 on the stock.
DA Davidson noted that the company is an internet-based bank with a mix of business lines, including commercial lending, mass market and specialty deposits, and an expanding securities segment. The research firm pointed out that Axos Financial, Inc.’s (NYSE:AX) branchless structure helps it stay nimble and profitable.
According to DA Davidson, this model gives the company a cost advantage over other institutions, helping Axos Financial, Inc. (NYSE:AX) to offer higher rates to deposit customers. The company has also built streamlined processes within its operations and continues to work on its in-house digital platform to improve integration across business lines.
The research firm also noted that Axos Financial, Inc. (NYSE:AX) is not held back by legacy structures in most of its business areas. DA Davidson pointed to the company’s forward-thinking management as a factor that supports its long-term outlook.
Axos Financial, Inc. (NYSE:AX) is an American bank holding company for Axos Bank, Axos Clearing LLC, and Axos Invest, Inc. It provides a comprehensive suite of digital-first consumer and commercial banking, securities clearing, and investment services.
4. UMB Financial Corporation (NASDAQ:UMBF)
UMB Financial Corporation (NASDAQ:UMBF) is one of the best American bank stocks to buy according to Wall Street analysts. On March 23, Truist Securities analyst Brian Foran reduced the firm’s price target on UMB Financial Corporation (NASDAQ:UMBF) from $150 to $130 while maintaining a Buy rating on the stock.
This update comes as part of a broader research note on the financial sector. Brian Foran told investors in a research note that Truist Securities is updating its models to reflect a higher cost of equity, which has led to lower valuation multiples compared to historical levels.
However, earlier, on March 2, Morgan Stanley increased its price target on UMB Financial Corporation (NASDAQ:UMBF) from $154 to $156 and kept its Overweight rating on the stock.
Morgan Stanley said that it is raising price targets by a median of 8% across mid-cap banks. The research firm highlighted the recent outperformance by the group and noted that “the bar is higher from here.” Despite this, Morgan Stanley is staying optimistic on mid-cap banks, pointing to tailwinds from loan growth, net interest margins, and capital returns.
UMB Financial Corporation (NASDAQ:UMBF) is a financial services company, offering commercial banking, personal banking, and institutional banking products and services. The company serves business clients nationwide in the US and institutional clients in several countries.
3. Huntington Bancshares Incorporated (NASDAQ:HBAN)
Huntington Bancshares Incorporated (NASDAQ:HBAN) is one of the best American bank stocks to buy according to Wall Street analysts. On March 9, Huntington Bancshares Incorporated (NASDAQ:HBAN) received a “Fresh Pick” designation from Baird. The research firm maintained its Outperform rating with a $20 price target on the stock.
According to Baird, the recent weakness in bank stocks has created better risk and reward opportunities for investors. The firm sees a “margin of safety” in many regional banks at current prices. Baird pointed to strong capital positions and solid credit trends. The research firm said that this is a good time for investors to start or increase their positions in regional bank stocks.
In other news, on March 2, Huntington Bancshares Incorporated (NASDAQ:HBAN) announced the opening of a new full-service, flagship branch of the Huntington National Bank in Winston-Salem. This marks another step in the company’s expansion across North Carolina and South Carolina.
This new branch is part of Huntington Bancshares Incorporated’s (NASDAQ:HBAN) previously announced plan to open around 55 locations in the two states. With this latest addition, the bank now operates six full-service branches across five markets across North Carolina and South Carolina.
Huntington Bancshares Incorporated (NASDAQ:HBAN) is a regional bank holding company. The Huntington National Bank and its affiliates provide consumers, small and middle-market businesses, corporations, municipalities, and other organizations with a comprehensive suite of banking, payments, wealth management, and risk management products and services.
2. Pinnacle Financial Partners, Inc. (NYSE:PNFP)
Pinnacle Financial Partners, Inc. (NYSE:PNFP) is one of the best American bank stocks to buy according to Wall Street analysts. On March 19, Pinnacle Financial Partners, Inc. (NYSE:PNFP) reported that it is expanding its Jacksonville team by adding eight financial professionals. This includes two former statewide banking leaders, along with experienced commercial and retail bankers, a mortgage advisor, and a financial advisor assistant.
Together, this group will bring decades of combined experience and expertise in commercial banking, small business lending, mortgage services, and client support. The new hires also have experience leading teams and managing complex client relationships. Pinnacle Financial Partners, Inc. (NYSE:PNFP) said these new additions support its strategy of bringing in experienced revenue producers who already have strong client relationships and deep knowledge of local markets.
The report also mentions that Pinnacle Financial Partners, Inc. (NYSE:PNFP) now has over $119 billion in assets following its merger with Synovus, which puts it in a good position to serve clients with more sophisticated needs.
In other news, on March 18, Pinnacle Financial Partners, Inc. (NYSE:PNFP) announced the opening of its first full-service office in Mobile, Alabama. This marks an important step in the company’s expansion in South Alabama.
The new office offers a wide range of services, including everyday banking, commercial banking, and other financial services, with a focus on providing a strong, community-centered customer experience.
Pinnacle Financial Partners, Inc. (NYSE:PNFP) is a bank holding company that provides a full range of banking, investment, trust, mortgage, and insurance products and services to commercial and consumer clients.
1. Western Alliance Bancorporation (NYSE:WAL)
Western Alliance Bancorporation (NYSE:WAL) is one of the best American bank stocks to buy according to Wall Street analysts. On March 9, Wells Fargo upgraded its rating on Western Alliance Bancorporation (NYSE:WAL) from Underweight to Equal Weight but reduced its price target from $83 to $79 on the stock.
Analyst Chris Spahr pointed to the company’s new chief financial officer, who has been in the role for about two months. Spahr believes the CFO is showing a strong understanding of the bank’s financials and has brought valuable experience from two decades at JPMorgan Chase & Co. (NYSE:JPM). The analyst also noted that the CFO has given reassurance about Western Alliance Bancorporation’s (NYSE:WAL) current reserves for asset-based loan exposures that recently caused some losses.
Despite the upgrade, Wells Fargo expressed some concerns about $3 billion of private credit loans compared to $7 billion in tangible common equity. The firm also noted that the bank recently faced an unexpected loss, which Western Alliance Bancorporation (NYSE:WAL) said is the reason it continues to hold extra capital.
The research firm noted that Western Alliance Bancorporation (NYSE:WAL) is working to “contain” the impact on earnings by taking actions in asset-liability management, such as a securities sale, cutting costs to improve efficiency, and focusing on new growth initiatives. Wells Fargo pointed out that the company “seems to be managing for outcomes, possibly at the expense of economic value.”
Western Alliance Bancorporation (NYSE:WAL) is an American banking company with Western Alliance Bank as its primary subsidiary. The bank is known for its tailored business banking solutions and consumer products.
While we acknowledge the potential of WAL to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than WAL and that has 100x upside potential, check out our report about the cheapest AI stock.
READ NEXT: 10 Best AI Stocks to Buy for the Next 10 Years and 11 Best Tech Stocks Under $50 to Buy Now.
Disclosure: None.
