In this article, we will list the Top 5 Bank Stocks to Buy Now According to Analysts. Please visit Top 10 Bank Stocks to Buy Now According to Analysts if you would like to see the extended list and the methodology behind it.
5. Banc of California Inc (NYSE:BANC)
Number of Hedge Fund Holders: 40
Stock Upside Potential: 11.17%
Banc of California Inc (NYSE:BANC) is one of the top bank stocks to buy now according to analysts. The stock has gained more than 38% over the past year, and it still has upside potential. The Street has a consensus Strong Buy rating on this regional bank stock, and some 40 hedge funds are backing the stock.
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On July 6, Wells Fargo raised its price target on Banc of California Inc (NYSE:BANC) shares to $23 from $22 while maintaining an Overweight rating on the stock ahead of Q2 results. The brokerage believes Banc of California will continue to deliver solid results and extend its outperformance track record for the third straight year.
In Q1, Banc of California’s revenue increased 8% YoY and net interest margin expanded 4 basis points. The bank continued to show capital flexibility, extending its $300 million share repurchase program to March 2027 and outlining plans to redeem $385 million in debt.
Wells Fargo sees a bright spot for Banc of California and other regional banks in the commercial and industrial loans market. In Q1, commercial and industrial loans increased 12.7% quarter-over-quarter, according to Fed data. That followed a 4.3% growth in all of 2025 compared to the prior year.
Banc of California Inc (NYSE:BANC) is a regional business bank with footprints in California, Colorado, and North Carolina. It provides commercial loans, payment processing, and treasury management for small and middle-market businesses.
4. Western Alliance Bancorporation (NYSE:WAL)
Number of Hedge Fund Holders: 41
Stock Upside Potential: 13.33%
Western Alliance Bancorporation (NYSE:WAL) is one of the top bank stocks to buy now according to analysts. Wall Street has a consensus Moderate Buy rating on Western Alliance Bancorporation (NYSE:WAL). A total of 41 hedge funds have positions in the stock.
On July 6, Western Alliance Bank, the primary subsidiary of Western Alliance Bancorporation, announced financing for Marble Manor Phase I, a 138‑unit mixed‑income housing project northwest of downtown Las Vegas. The package includes $31 million in tax‑exempt construction bonds, $2 million in taxable bonds, and $19.46 million in tax‑exempt permanent bonds, with R4 Capital Funding managing construction and permanent assets.
The development will feature five residential buildings with one‑ to five‑bedroom family rental homes. Thirty units will be market‑rate, while 108 will serve families earning 30–60% of the area median income. Plans also include 3,000 square feet of retail space and supportive services from the Southern Nevada Regional Housing Authority. Brinshore Development and SNRHA are co‑developers, Metcalf Builders is handling construction, and Enterprise Community Partners is providing $21.7 million in tax credit equity. HUD awarded a $53 million Choice Neighborhoods Grant, and construction began in April 2026.
Western Alliance has financed similar projects in Reno and Las Vegas. However, on July 2, Jefferies Financial (NYSE:JEF) filed suit alleging the bank unlawfully froze a $25 million account tied to Point Bonita Capital, sparking a legal dispute over losses linked to First Brands Group.
Western Alliance Bancorporation (NYSE:WAL), the holding company for Western Alliance Bank, offers a range of commercial and consumer banking services across Arizona, California, and Nevada.
3. Pinnacle Financial Partners Inc (NYSE:PNFP)
Number of Hedge Fund Holders: 52
Stock Upside Potential: 18.77%
Pinnacle Financial Partners Inc (NYSE:PNFP) is one of the top bank stocks to buy now according to analysts. Wall Street has a Strong Buy rating on PNFP stock and sees more than 18% upside potential to the current share price.
On June 25, Benchmark initiated coverage of Pinnacle Financial Partners Inc (NYSE:PNFP) stock with a Buy rating and a price target of $132. The brokerage observed that Pinnacle’s growth trajectory and geographic footprint have been bolstered following its merger with Synovus. In light of this, the brokerage expects Pinnacle’s profitability to improve over the next year.
Benchmark noted that the market has doubts about the success of Pinnacle’s combination with Synovus, leading to the stock trading at a discounted valuation. The brokerage’s price target for Pinnacle stock is set at 11 times its fiscal 2027 earnings estimates.
Pinnacle and Synovus completed their $8.6 billion all-stock merger of equals in January, forming a regional banking powerhouse with $117.2 billion in assets, $95.7 billion in deposits, and more than 400 branches.
Pinnacle Financial Partners Inc (NYSE:PNFP) is a major American regional bank and financial services company. It operates in multiple states across the Southeast and provides banking, investment, mortgage, and insurance services to consumers and businesses.
2. Wells Fargo & Co (NYSE:WFC)
Number of Hedge Fund Holders: 82
Stock Upside Potential: 10.59%
Wells Fargo & Co (NYSE:WFC) is one of the top bank stocks to buy now according to analysts. Wells Fargo shares have gained roughly 8% in the past month and are expected to keep rising. Wall Street has a consensus Buy rating on Wells Fargo stock, and some 82 hedge funds are backing this stock.
On July 6, JPMorgan raised its price target on Wells Fargo & Co (NYSE:WFC) shares to $93.50 from $86.50 while keeping a Neutral rating on the stock. The firm adjusted the Wells Fargo estimates as part of its large-cap banks Q2 2026 earnings preview.
Wells Fargo is due to report its Q2 results on July 14. For the quarter, analysts are projecting 4.9% YoY revenue growth for the bank to $21.8 billion. The quarter is expected to benefit from continued growth in consumer and business spending, which is fueling loan volumes and deposits. At an investor conference in June, Wells Fargo said its loan growth was exceeding initial expectations.
GAAP EPS is forecast to rise 7% to $1.71. The bank’s bottom line is expected to benefit from cost discipline aimed at expanding the operating profit margin.
Wells Fargo & Co (NYSE:WFC) is a multinational bank and financial services company. It serves both individual clients and business customers. Wells Fargo services include checking and savings accounts, credit cards, auto loans, and business loans.
1. Nu Holdings Ltd. (NYSE:NU)
Number of Hedge Fund Holders: 104
Stock Upside Potential: 12.14%
Nu Holdings Ltd. (NYSE:NU) is one of the top bank stocks to buy now according to analysts. In the past month alone, Nu Holdings shares have climbed up more than 17%, and analysts see them rising. Wall Street has a consensus Buy rating on Nu Holdings.
Nu Holdings Ltd. (NYSE:NU), doing business as Nubank, plans to invest $4.2 billion to grow its business in Mexico over the next four years. The investment plan was announced on July 6 after Nubank executives met with Mexican President Claudia Sheinbaum at the National Palace.
In the first phase of the investment, the bank will focus on expanding its operational capabilities and roll out fresh banking services. The bank plans to deploy $2.5 billion toward capital expenditures. In April, Nubank secured a license that allows it to expand its lending, banking, and deposit products in Mexico.
Nubank added roughly 4 million customers in Q1. The bank has built a base of 115 million customers in Brazil, around 14 – 15 million customers in Mexico, and nearly 5 million customers in Colombia. According to the equity research firm Needham, Nubank’s customer base can help drive growth in other Latin American markets. Needham initiated coverage of Nubank stock on June 26 with a Buy rating and $17 price target.
Nu Holdings Ltd. (NYSE:NU) is the parent of Nubank, the largest digital banking platform in Latin America. Nubank offers app-based banking, credit cards, and investment tools. It serves roughly 135 million customers across Brazil, Mexico, and Colombia. Nubank runs a fully digital operation without traditional bank branches.
While we acknowledge the potential of NU 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 NU and that has 100x upside potential, check out our report about the cheapest AI stock.
READ NEXT: Top 10 Stocks to Buy According to Whale Rock Capital Management and 10 Best Stocks to Buy According to David Greenspan’s Slate Path Capital.
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