Sectors & IndustriesFinancial ServicesBanks - Regional

Best Bank Stocks to Buy Now (2026)

Top bank stocks in 2026 ranked by overall Zen Rating. "A" Rated stocks have returned an average of +32.52% per year, and are the best bank stocks to buy now. Learn More.

According to Zen Ratings, our proprietary rating system that evaluates 115 factors proven to drive growth in stocks and assigns each stock in our system an overall letter grade as well as 7 individual Component Grades for Value, Growth, Momentum, Sentiment, Safety, Financials, and proprietary AI algorithms, the 3 best bank stocks to buy right now are:

Banco Santander Sa (NYSE:BSBR) is the #1 top bank stock out of 313 with a Zen Rating of A. Stocks with a rating of A have had an average return of +32.52% per year. Learn more.

The Component Grade breakdown for Banco Santander Sa (NYSE:BSBR) is: Value: B, Growth: B, Momentum: C, Sentiment: B, Safety: C, Financials: C, and AI: A.

Banco Santander Sa (NYSE:BSBR) has a Due Diligence Score of 6, which is -33 points lower than the bank industry average of 39. Although this number is below the industry average, our proven quant model rates BSBR as a "A".

BSBR passed 2 out of 38 due diligence checks and has weak fundamentals. Banco Santander Sa has seen its stock return 27.86% over the past year, overperforming other bank stocks by 1 percentage points.

Franklin Financial Services (NASDAQ:FRAF) is the #2 top bank stock out of 313 with a Zen Rating of B. Stocks with a rating of B have had an average return of +19.88% per year. Learn more.

The Component Grade breakdown for Franklin Financial Services (NASDAQ:FRAF) is: Value: C, Growth: B, Momentum: C, Sentiment: B, Safety: C, Financials: C, and AI: C.

Franklin Financial Services (NASDAQ:FRAF) has a Due Diligence Score of 44, which is 5 points higher than the bank industry average of 39.

FRAF passed 15 out of 38 due diligence checks and has strong fundamentals. Franklin Financial Services has seen its stock return 41.87% over the past year, overperforming other bank stocks by 15 percentage points.

Waterstone Financial (NASDAQ:WSBF) is the #3 top bank stock out of 313 with a Zen Rating of B. Stocks with a rating of B have had an average return of +19.88% per year. Learn more.

The Component Grade breakdown for Waterstone Financial (NASDAQ:WSBF) is: Value: C, Growth: B, Momentum: C, Sentiment: C, Safety: C, Financials: C, and AI: B.

Waterstone Financial (NASDAQ:WSBF) has a Due Diligence Score of 38, which is -1 points lower than the bank industry average of 39. Although this number is below the industry average, our proven quant model rates WSBF as a "B".

WSBF passed 13 out of 38 due diligence checks and has average fundamentals. Waterstone Financial has seen its stock return 45.24% over the past year, overperforming other bank stocks by 18 percentage points.

Out of 261 bank stocks that have issued dividends in the past year, the 3 bank stocks with the highest dividend yields are:

Affinity Bancshares (NASDAQ:AFBI) has an annual dividend yield of N/A, which is N/A percentage points lower than the bank industry average of 2.72%.

Affinity Bancshares's dividend payout ratio of 0% indicates that its dividend yield might not be sustainable for the long-term.

Blue Ridge Bankshares (NYSEMKT:BRBS) has an annual dividend yield of 17.05%, which is 14 percentage points higher than the bank industry average of 2.72%. Blue Ridge Bankshares's dividend payout is stable, having never dropped by more than 10% in the last 10 years. Blue Ridge Bankshares's dividend has shown consistent growth over the last 10 years.

Blue Ridge Bankshares's dividend payout ratio of 208.3% indicates that its high dividend yield might not be sustainable for the long-term.

Tfs Financial (NASDAQ:TFSL) has an annual dividend yield of 7.66%, which is 5 percentage points higher than the bank industry average of 2.72%. Tfs Financial's dividend payout is stable, having never dropped by more than 10% in the last 10 years. Tfs Financial's dividend has shown consistent growth over the last 10 years.

Tfs Financial's dividend payout ratio of 353.1% indicates that its high dividend yield might not be sustainable for the long-term.

Bank stocks were down -0.44% in the last day, and up 0.16% over the last week. Nicolet Bankshares was the among the top losers in the banks - regional industry, dropping -7.75% yesterday.

Nicolet Bankshares shares are trading lower after the company reported Q1 financial results. Also, Piper Sandler lowered its price target on the stock from $185 to $183.

Based on the Valuation rating, one of the 7 components of a stocks overall Zen Ratings grade, which evaluates factors including estimated earnings yield, earnings before interest and taxes/enterprise value, cash flow yield, free cash flow to price, and price-to-earnings growth (PEG ratio), the 3 most undervalued bank stocks right now are:

Newtekone (NASDAQ:NEWT) is the most undervalued bank stock based on its Valuation Rating of A. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Newtekone has a valuation score of 71, which is 20 points higher than the bank industry average of 51. It passed 5 out of 7 valuation due diligence checks.

Newtekone's stock has gained 22.07% in the past year. It has underperformed other stocks in the bank industry by -5 percentage points.

Op Bancorp (NASDAQ:OPBK) is the second most undervalued bank stock based on its Valuation Rating of A. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Op Bancorp has a valuation score of 71, which is 20 points higher than the bank industry average of 51. It passed 5 out of 7 valuation due diligence checks.

Op Bancorp's stock has gained 21.94% in the past year. It has underperformed other stocks in the bank industry by -5 percentage points.

Burke & Herbert Financial Services (NASDAQ:BHRB) is the third most undervalued bank stock based on its Valuation Rating of A. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Burke & Herbert Financial Services has a valuation score of 71, which is 20 points higher than the bank industry average of 51. It passed 5 out of 7 valuation due diligence checks.

Burke & Herbert Financial Services's stock has gained 26.44% in the past year. It has performed in line with other stocks in the bank industry.

36.11% of bank stocks rated by analysts are a strong buy right now. On average, analysts expect bank stocks to rise by 10.06% over the next year.

0.37% of bank stocks have a Zen Rating of A (Strong Buy), 6.59% of bank stocks are rated B (Buy), 79.85% are rated C (Hold), 12.09% are rated D (Sell), and 1.1% are rated F (Strong Sell).