In this article, we will discuss the Goldman Sachs Bank Stocks: Top 10 Stocks to Buy.
The financial sector has been one of the worst-performing in the equity market, barely a year after finishing third. The S&P 500 financial sector is already down about 5% year to date, underperforming the overall market, which is up about 3%.
The underperformance comes on the back of deteriorating macroeconomic conditions, exacerbated by geopolitical turmoil, raising serious concerns about economic growth. The uncertainty is already forcing some of the big banks to act.
Goldman CEO David Solomon said that “market conditions became more volatile” in the first quarter and that Goldman will manage risks carefully as the “geopolitical landscape remains very complex.”
Amid the turmoil and uncertainty, the financial sector appears to be turning a corner as investors react to solid earnings from big banks. Heightened geopolitical tensions have led to an uptick in trading volumes, helping offset losses from deal-making. Analysts are already flagging an uneven path forward for deals concerned by geopolitical uncertainties.
“The banks were understandably reticent to be too bullish in their outlook statements, given the range of possible outcomes to the Middle Eastern conflict and the peace talks,” Russ Mould, investment director at AJ Bell, told Reuters.
Banks are benefiting from increased market activity as investors and traders take advantage of market volatility. In addition, banks are reporting strong performance across asset classes, including equities, fixed income, and commodities, driven by increased client activity and rapid price movements. Banks are also capitalizing on a modest recovery in loan demand, therefore supporting higher interest income.
These impressive financial results from some of the big banks serve as a key barometer of the broader economy, offering insight into how businesses and consumers are coping with high borrowing costs. With that in mind, let’s take a look at Goldman Sachs top bank stocks.
Our Methodology
To compile a list of Goldman Sachs Bank Stocks: Top 10 Stocks to Buy, we analyzed the firm’s Q4 2025 13F portfolio filings. From the list, we settled on the top banks in which Goldman Sachs maintains significant holdings and also detailed the number of hedge funds that hold stakes in them. Finally, we ranked the stocks in ascending order based on Goldman Sachs’ stakes.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research shows 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)..
Goldman Sachs Bank Stocks: Top Stocks to Buy
10. The PNC Financial Services Group, Inc. (NYSE:PNC)
Goldman Sachs Equity Stake: $566.16 Million
Number of Hedge Fund Holders: 61
The PNC Financial Services Group, Inc. (NYSE:PNC) is one of Goldman Sachs top bank stocks to buy. On April 15, The PNC Financial Services Group, Inc. (NYSE:PNC) delivered solid first-quarter 2026 results on the back of strong legacy loan growth. Client activity in the quarter was strong across all geographies and positioned for strong momentum in 2026.
Total revenue in the quarter was up 2%, driven by higher net interest income of $4 billion, up 6% year over year. Higher net interest income was attributed to the impact of the First Bank Holding acquisition, lower funding costs, and commercial loan growth. Net income attributable to shareholders increased to $1.67 billion, up from $1.4 billion a year ago.
Consequently, PNC Financial Services Group Inc. (NYSE: PNC) delivered earnings per share of $4.32 compared to $3.51 delivered in the same quarter last year. The earnings increase was driven by higher net income and noninterest income, partially offset by higher noninterest expense and the provision for credit losses.
Earlier, PNC Financial Services Group signed a lease for new Class-A office space in HALL Park in Frisco, asserting its continued growth in North Texas.
The PNC Financial Services Group, Inc. (NYSE:PNC) is one of the largest diversified financial services companies, providing retail banking, corporate banking, real estate finance, and asset management. It offers products such as lending, treasury management, and wealth management for individuals, corporations, and government entities.
9. Deutsche Bank Aktiengesellschaft (NYSE:DB)
Goldman Sachs Equity Stake: $644.95 Million
Number of Hedge Fund Holders: 24
Deutsche Bank Aktiengesellschaft (NYSE:DB) is one of Goldman Sachs top bank stocks to buy. On April 20, Barclays downgraded Deutsche Bank Aktiengesellschaft (NYSE:DB) to Equal Weight from Overweight and lowered the price target to €32 from €39.
The downgrade comes amid growing concerns about the health of the German economy. Germany’s gross domestic product is expected to accelerate in 2027 rather than 2026. According to Barclays, delayed German growth could affect the bank’s performance. Consequently, it cut Deutsche Bank’s 2026 to 2028 earnings per share estimates by 4% to 8%, placing its forecast 3% to 7% below consensus.
On the other hand, analysts at Citi upgraded Deutsche Bank to a Neutral, citing improving earnings dynamics and valuation support. The analysts have pushed back on concerns that the Middle East conflict and the rise of private credit will affect European lenders. Similarly, the European banks are among the few areas of the market seeing earnings upgrades.
On the other hand, the board of directors is proposing a €1.00 dividend per share for 2025, pending approval at the upcoming AGM on May 28.
Deutsche Bank Aktiengesellschaft (NYSE:DB) is a leading global financial services provider headquartered in Frankfurt, Germany, acting as a “Global Hausbank” for corporate, institutional, and private clients. Its core activities include corporate/transaction banking, investment banking, private banking for individuals, and asset management through its DWS brand.
8. U.S. Bancorp (NYSE:USB)
Goldman Sachs Equity Stake: $655.12 Million
Number of Hedge Fund Holders: 57
U.S. Bancorp (NYSE:USB) is one of Goldman Sachs top bank stocks to buy. On April 17, Truist Securities reiterated its Buy rating on U.S. Bancorp (NYSE:USB) but cut its price target to $62 from $63. The price target cut also coincides with the research firm reducing its 2026 earnings per share estimate of the company to $5.05 from $5.10.
It also cut the 2027 EPS estimate to $5.65 from $5.70. The 1% cut is in response to the expectation of a higher share count due to lower share repurchases next year. The earnings estimate cut comes amid concerns about the trajectory of net interest income growth. The research firm is also wary of the path of share repurchase through the remainder of the year.
U.S. Bancorp delivered impressive first-quarter 2026 results as revenue increased 4.7% to $7.29 billion, in line with analyst estimates. Net interest income was up 4.2% to $4.26 billion, slightly below consensus estimates of $4.27 billion. Earnings per share topped $1.18, better than the $1.14 a share expected.
U.S. Bancorp (NYSE:USB) is a Minneapolis-based financial services holding company and the parent of U.S. Bank National Association, the 7th largest bank in the U.S. It provides diversified banking, investment, mortgage, trust, and payment services to consumers, businesses, and institutions through over 2,000 branches, digital platforms, and ATM networks.
7. The Bank of New York Mellon Corporation (NYSE:BK)
Goldman Sachs Equity Stake: $740.34 Million
Number of Hedge Fund Holders: 60
The Bank of New York Mellon Corporation (NYSE:BK) is one of Goldman Sachs top bank stocks to buy. On April 17, Truist Securities reiterated its Buy rating on Bank of New York Mellon Corp (NYSE: BK) and raised the price target to $148 from $140. The price target hike comes on the heels of the bank delivering strong first-quarter 2026 results, impacted by broad-based growth across Securities Services and the Market and Wealth Services businesses.
Total revenue in the first quarter was up 13% year over year to $5.41 billion, driven by an 11% increase in fee revenue and an 18% increase in net interest income. Net income applicable to shareholders was up 36% year over year to $1.56 billion as diluted earnings per share increased 42% to $2.24.
Following the impressive first-quarter results, Truist Securities expects Bank of New York Mellon Corp’s overall revenue to grow by 7% for the year, above the company’s guidance of 6%. The research firm also projects fee growth of 5%, which is better than the 4% in the guidance. It has also raised its 2026 earnings per share estimate to $8.75 from $8.50.
The Bank of New York Mellon Corporation (NYSE:BK) is a global financial services company that provides investment, wealth management, and asset management services, acting primarily as a custodian to safeguard assets.
6. UBS Group AG (NYSE:UBS)
Goldman Sachs Equity Stake: $836.51 Million
Number of Hedge Fund Holders: 39
UBS Group AG (NYSE:UBS) is one of Goldman Sachs top bank stocks to buy. On April 22, UBS Group AG (NYSE:UBS) reiterated it will need to hold an additional $22 billion in CET1 capital. The adjustment would be in response to the Swiss Federal Council publishing the Capital Adequacy Ordinance and submitting it to parliament.
The ordinance is expected to come into effect early next year and will require higher capital deductions for assets subject to valuation uncertainty. In addition, they would impose a three-year amortization schedule for capitalized software. The new measures would eliminate about $4 billion of net CET1 capital and could reduce UBS Group’s CET1 capital ratio by about 0.8%.
The new requirement would require UBS Group to hold additional capital of about $20 billion. Combined with $2 billion in net CET1, the total incremental capital requirement will stand at about $22 billion. Consequently, UBS Group’s de facto minimum CET1 capital ratio will be about 18.4% or 17.6% after accounting for all ordinance measures. The additional capital requirement would carry an annual cost of $3 billion.
UBS Group AG (NYSE:UBS) is a leading global financial services firm headquartered in Switzerland, recognized as the world’s largest wealth manager. It provides comprehensive wealth management, personal and corporate banking, asset management, and investment banking services to private, institutional, and corporate clients globally, following its acquisition of Credit Suisse.
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