In this article, we will discuss the Top 10 Bank Stocks to Buy Now According to Analysts.
US bank stocks are entering the second-quarter earnings season with strong momentum. The S&P 500 Financials Sector is up more than 8% over the past month, outperforming the broader market’s 1.32% return in the same period. The sector has been buoyed by robust capital markets activity and a resilient commercial loan market. These have investors growing more optimistic about the sector’s earnings outlook.
Wall Street has also become more constructive on the sector. On July 7, Wells Fargo banking analyst Mark Mayo said on CNBC that bank stocks appear to be on track to outperform the market for the third year in a row. Mayo projects nearly 20% earnings growth and more than 10% revenue growth for the US bank group in Q2.
Analysts are increasingly favoring banks with stable deposits and growing fee income from sources like investment banking, wealth management, and payments. The AI boom is also indirectly benefiting banks by stimulating corporate investment, mergers, and equity and debt offerings.
For investors seeking exposure to a sector that stands to benefit from improving business confidence heading into the second half of 2026, bank stocks are one of the Street’s highest-conviction opportunities.
That said, this article explores some of the top bank stocks to buy now according to analysts.
Our Methodology
We began by filtering US-listed bank stocks with the Street’s projected upside potential of at least 10%. From there, we selected stocks with a consensus Buy rating or better. Next, we reviewed the overall hedge fund sentiment around these stocks using Insider Monkey’s Q1 2026 database and picked out stocks backed by at least 15 hedge funds. Finally, the stocks were ranked in ascending order based on hedge fund popularity.
Why are we interested in the stocks that hedge funds pile into? 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. Insider Monkey’s quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).
Top Bank Stocks to Buy Now According to Analysts
10. Merchants Bancorp (NASDAQ:MBIN)
Number of Hedge Fund Holders: 14
Stock Upside Potential: 11.69%
Merchants Bancorp (NASDAQ:MBIN) is one of the top bank stocks to buy now according to analysts. Merchants Bancorp shares have gained more than 43% year-to-date, and analysts see more than 10% upside potential in the stock at the current price. Wall Street has a consensus Buy rating on Merchants Bancorp stock.
On June 29, Morgan Stanley raised the price target on Merchants Bancorp (NASDAQ:MBIN) shares to $49 from $46 while reiterating a Buy rating on the stock. The brokerage observed that the US banks group has rallied since the beginning of Q2, and it remains constructive on bank stocks going into the earnings season. Morgan Stanley noted that revenue momentum continues to build in the group.
Merchants Bancorp’s strong start to the year was marked by a 16% jump in net income, a 34% rise in EPS, an 8% increase in total assets, and a 4% rise in deposits on a year-over-year basis. The bank repurchased $3 million of its shares during the quarter. It plans to repurchase up to $100 million of its shares over the next year.
Indiana-based Merchants Bancorp (NASDAQ:MBIN) provides banking, lending, and other financial services to retail and commercial customers. Its services include agricultural lending, healthcare facility financing, and multifamily housing financing. The bank has more than $20 billion in assets.
9. Customers Bancorp Inc (NYSE:CUBI)
Number of Hedge Fund Holders: 22
Stock Upside Potential: 20.76%
Customers Bancorp Inc (NYSE:CUBI) is one of the top bank stocks to buy now according to analysts. Analysts have a consensus Strong Buy rating on CUBI stock and project more than 20% upside to the current share price.
On July 1, JPMorgan lifted its price target on Customers Bancorp Inc (NYSE:CUBI) shares to $94 from $86 and kept an Overweight rating on the stock. The brokerage raised the bank’s target as part of its Q2 model adjustment across the small and mid-cap bank stocks group. According to JPMorgan, Q2 fundamental trends across the group show stable credit trends and growing loan and deposits.
Customers Bancorp is among the regional banks using AI agents to increase productivity and improve operational efficiency. The bank has inked a multiyear deal with ChatGPT maker OpenAI to help it automate lending and client onboarding processes. Its aim is to reduce loan timelines and grow the business without adding staff. The bank plans to repurchase $100 million of its stock over the next year.
Customers Bancorp Inc (NYSE:CUBI) is a top US regional bank with over $25 billion in assets. It offers banking and loan services to businesses, families, and individuals. The bank has footprints across multiple states, including Pennsylvania, Florida, Illinois, Massachusetts, and Texas.
8. First Merchants Corp (NASDAQ:FRME)
Number of Hedge Fund Holders: 29
Stock Upside Potential: 16.28%
First Merchants Corp (NASDAQ:FRME) is one of the top bank stocks to buy now according to analysts. The Street has a Buy rating on First Merchants stock and projects a more than 16% upside to the current share price.
On June 26, Piper Sandler raised its price target on First Merchants Corp (NASDAQ:FRME) shares to $51 from $49 and kept an Overweight rating on the stock. The brokerage upgraded the target for First Merchants as part of its target adjustment for Midwest banks ahead of Q2 results.
First Merchants started the year with strong momentum, delivering solid adjusted earnings growth and an expanded net interest margin. Additionally, the bank recorded continued strength in the commercial loans business. Moreover, the bank’s capital, liquidity, and credit quality remained strong, and the management said this puts the company in a good position to continue growing and creating value for investors.
First Merchants completed the acquisition of First Savings in Q1, adding $2.4 billion of assets to its portfolio and enhancing its ability to serve clients across Indiana and beyond.
Indiana-based First Merchants Corp (NASDAQ:FRME) provides a wide variety of financial services to consumers, businesses, and public sector clients. It provides personal banking, commercial banking, and wealth advisory services to clients across Indiana, Michigan, and Ohio.
7. ICICI Bank Ltd (NYSE:IBN)
Number of Hedge Fund Holders: 37
Stock Upside Potential: 11.37%
ICICI Bank Ltd (NYSE:IBN) is one of the top bank stocks to buy now according to analysts. The Street has a consensus Buy rating on the stock and projects an 11% upside to the current price. A total of 37 hedge funds and 15 billionaires are backing ICICI Bank stock.
ICICI Bank Ltd (NYSE:IBN) has teamed up with TPG and others to acquire Aseem Infrastructure Finance, a leading provider of loans to fund sustainable infrastructure projects in India. According to a July 6 press statement, ICICI Bank will hold up to a 5% stake in Aseem.
Aseem has disbursed roughly $4.2 billion in loans to finance various projects. These include 27-GW renewable energy projects and roughly 2,000 kilometers of power transmission projects. With India targeting to reach 500 GW of renewable energy capacity by 2030, ICICI Bank and TPG see Aseem as uniquely positioned to address the country’s climate solutions financing needs.
ICICI Bank aims to raise at least $500 million in fresh capital as it looks to secure a stake in Aseem. On July 3, Bloomberg reported that the bank was in talks to raise capital through offshore dollar bonds.
ICICI Bank Ltd (NYSE:IBN) is an Indian multinational bank and financial services group headquartered in Mumbai. It provides retail and corporate banking, investment banking, wealth management, and insurance. The group operates an extensive network of local branches and ATM locations.
6. SouthState Bank Corp (NYSE:SSB)
Number of Hedge Fund Holders: 39
Stock Upside Potential: 18.17%
SouthState Bank Corp (NYSE:SSB) is one of the top bank stocks to buy now according to analysts. Wall Street has a consensus Strong Buy rating on SouthState Bank stock and a price target that suggests a 18% upside potential.
On July 1, JPMorgan raised its price target on SouthState Bank Corp (NYSE:SSB) shares to $120 from $115 while keeping an Overweight rating on the stock. The brokerage upgraded the bank’s price target as part of its model adjustment in the small and mid-cap bank group ahead of Q2 earnings.
According to JPMorgan, fundamental trends for Q2 will show loan and deposit growth in the mid-single digit range. The brokerage also expects credit trends to remain stable. SouthState Bank is due to report its Q2 results on July 23. The bank opened the year with solid momentum, delivering Q1 results that showed a 162% YoY increase in EPS, 3% jump in net interest income, and a 7% increase in loans. On the back of the strong Q1 results, the board declared a quarterly cash dividend of $0.60.
SouthState Bank Corp (NYSE:SSB) is a regional bank company that operates in Florida, Texas, the Carolinas, Georgia, Colorado, Alabama, Virginia, and Tennessee. It also serves clients nationwide through its correspondent banking division. SouthState Bank offers consumer and commercial banking services along with wealth management and other solutions.
While we acknowledge the potential of SSB 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 SSB and that has 100x upside potential, check out our report about the cheapest AI stock.
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