In this article, we will list the Goldman Sachs Bank Stocks: Top 5 Stocks to Buy. Please visit Goldman Sachs Bank Stocks: Top 10 Stocks to Buy if you would like to see the extended list and the methodology behind it.
5. The Charles Schwab Corporation (NYSE:SCHW)
Goldman Sachs Equity Stake: $974.77 Million
Number of Hedge Fund Holders: 104
The Charles Schwab Corporation (NYSE:SCHW) is one of Goldman Sachs top bank stocks to buy. On April 17, analysts at TD Cowen reiterated that The Charles Schwab Corporation (NYSE:SCHW) as a Buy but lowered the price target to $108 from $128.
In addition to the price target cut, the research firm also lowered its 2026 and 2027 estimates despite the bank delivering impressive first-quarter results that topped estimates on strong business momentum. The new price target reflects 16 times the company’s 2027 estimates, down from 18 times.
The bank is benefiting from strong business momentum as investors opened 1.3 million new brokerage accounts in the first quarter. In addition, the investors brought in $140 billion of core new assets to the firm.
A diversified business model also allowed the bank to deliver record results amid an increasingly uncertain macroeconomic environment. Consequently, net revenue in the quarter was up 16% year over year to $6.5 billion as adjusted net income increased 29% to $2.6 billion. Adjusted diluted earnings per share increased 38% to $1.43.
The Charles Schwab Corporation (NYSE:SCHW) is a major U.S.-based financial services firm. It provides brokerage, banking, and financial advisory services to individual investors and independent investment advisors. The company offers $0 online equity trades, asset management, and, as of late 2024, manages over $10 trillion in client assets.
4. Citigroup Inc. (NYSE:C)
Goldman Sachs Equity Stake: $998.44 Million
Number of Hedge Fund Holders: 115
Citigroup Inc. (NYSE: C) is one of Goldman Sachs’ top bank stocks to buy. On April 21, Citigroup’s wealth unit, Citi Wealth, entered a strategic partnership with Advyzon Enterprise Solutions and Advyzon Investment Management. The partnership advances the bank’s global advisory offering as it seeks to strengthen the wealth management segment.
The companies are joining forces to launch a Global Unified Managed Account Program for wealth management clients. The program is tailored for clients across Citi Private Bank, Wealth at Work, and Citigold & Citi Private Client groups. Under the new program, clients will be able to consolidate Citi Wealth’s investment advisory solutions, including ETFs, mutual funds, and separately managed accounts.
The new program is to integrate Citigroup’s Citi Portfolio Solutions powered by BlackRock. In addition, it will leverage artificial intelligence and support multi-jurisdictional operations and multiple currencies. Advyzon is to provide the technology platform, inclusive of trading, portfolio modeling, rebalancing, billing, and reporting capabilities.
Citigroup Inc. (NYSE:C) is a major global diversified financial services holding company and the third-largest bank in the U.S. by assets. It provides investment banking, corporate banking, trading, wealth management, and personal banking (credit cards) to corporations, governments, and individuals in over 160 countries.
3. Capital One Financial Corporation (NYSE:COF)
Goldman Sachs Equity Stake: $1.84 Billion
Number of Hedge Fund Holders: 136
Capital One Financial Corporation (NYSE:COF) is among Goldman Sachs’ top bank stocks to buy. On April 22, TD Cowen reiterated a Buy rating and a $260 price target for Capital One Financial Corporation (NYSE:COF). The research firm remains bullish about the stock despite the company missing first-quarter estimates due to higher-than-expected provisions in card and consumer segments.
The higher-than-expected provisions in the card underscore expectations of robust growth and a higher reserve rate due to a subprime mix. Card loss rates were in line with expectations, even as auto and commercial loss rates ticked higher. Credit card average loans decreased by 1% to $271 billion in the first quarter, as auto average loans increased 2% to $84.5 billion.
Capital One reported first-quarter net income of $2.2 billion, or $3.34 per share, compared to $1.4 billion, or $3.45 per share, in Q1 2025. Revenue fell 2% to $15.2 billion. CEO Richard Fairbank said the results reflect solid top-line growth and strong credit performance.
Capital One Financial Corporation (NYSE:COF) is a technology-driven financial services company that operates as a major diversified bank and global payments provider. It offers credit cards, consumer banking (checking/savings), auto loans, and commercial banking services.
2. Wells Fargo & Company (NYSE:WFC)
Goldman Sachs Equity Stake: $1.90 Billion
Number of Hedge Fund Holders: 72
Wells Fargo & Company (NYSE:WFC) is one of Goldman Sachs top bank stocks to buy. On April 15, Keefe Bruyette & Woods reiterated a Market Perform rating on Wells Fargo & Company (NYSE:WFC) but cut the price target to $98 from $101.
The price target cut was due to Wells Fargo’s first-quarter net interest income missing estimates, even as the bank maintained its 2026 guidance despite high-rate expectations. Net interest income in Q1 rose 5% year-over-year to $12.1 billion, driven by higher deposit balances and lower deposit costs. The bank also improved in markets, with higher loan and investment securities balances.
Total revenue in the first quarter increased 6% to $21.45 billion from $20.15 billion delivered in the same quarter last year. Revenue increased due to a 5% increase in net interest income and an 8% increase in non-interest income. Net income totaled $5.25 billion, up from $4.89 billion in the same quarter last year. Diluted earnings per common share came in at $1.60, up from $1.39 a share delivered the same quarter last year.
Wells Fargo & Company (NYSE:WFC) is a leading multinational financial services firm that offers banking, investment, mortgage, and consumer/commercial finance products to over 70 million customers. As one of the top five US banks by assets, it offers services such as check cashing, loans, and wealth management.
1. Morgan Stanley (NYSE:MS)
Goldman Sachs Equity Stake: $2.70 Billion
Number of Hedge Fund Holders: 80
Morgan Stanley (NYSE:MS) is one of Goldman Sachs top bank stocks to buy. On April 16, UBS reiterated its Buy rating on Morgan Stanley (NYSE:MS) and set a $196 price target. The positive stance comes on the heels of the investment bank delivering impressive first-quarter 2026 results, driven by growth in institutional securities and wealth management revenue.
Net revenue soared to a record $20.58 billion from $17.739 billion in the same quarter last year. Net income increased to $5.6 billion, compared with $4.3 billion in the first quarter of 2025, as earnings per share came in at $3.43, beating consensus estimates of $3.01. Additionally, Morgan Stanley delivered a record ROTCE of 27.1%, with expense efficiency at 65%, affirming operating leverage as the bank continues to invest in the business.
Net revenues in Institutional Securities totaled $10.7 billion, reflecting strong performance in the Markets business. The increase from $8.98 billion was driven by robust client engagement and increased market volatility. Morgan Stanley also achieved record net revenue of $8.5 billion in wealth management, driven by strong asset management revenues and robust client activity.
Morgan Stanley (NYSE:MS) is a global financial services firm. It provides investment banking, securities, wealth management, and investment management services to corporations, governments, institutions, and individuals. The firm focuses on raising, managing, and distributing capital, acting as a financial intermediary to help clients achieve their financial goals.
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