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:

Franklin Financial Services (NASDAQ:FRAF) is the #1 top bank stock out of 314 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: B, Growth: B, Momentum: C, Sentiment: A, 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 45.98% over the past year, overperforming other bank stocks by 23 percentage points.

Banco Santander Sa (NYSE:BSBR) is the #2 top bank stock out of 314 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 Banco Santander Sa (NYSE:BSBR) is: Value: B, Growth: B, Momentum: C, Sentiment: C, Safety: C, Financials: C, and AI: A.

Banco Santander Sa (NYSE:BSBR) has a Due Diligence Score of 14, which is -25 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 "B".

BSBR passed 4 out of 38 due diligence checks and has weak fundamentals. Banco Santander Sa has seen its stock return 11.41% over the past year, underperforming other bank stocks by -12 percentage points.

Waterstone Financial (NASDAQ:WSBF) is the #3 top bank stock out of 314 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 40, which is 1 points higher than the bank industry average of 39.

WSBF passed 14 out of 38 due diligence checks and has average fundamentals. Waterstone Financial has seen its stock return 48.93% over the past year, overperforming other bank stocks by 26 percentage points.

Out of 264 bank stocks that have issued dividends in the past year, the 3 bank stocks with the highest dividend yields are:

Blue Ridge Bankshares (NYSEMKT:BRBS) has an annual dividend yield of 17.49%, which is 15 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.

Intercorp Financial Services (NYSE:IFS) has an annual dividend yield of 7.87%, which is 5 percentage points higher than the bank industry average of 2.72%. Intercorp Financial Services's dividend payout is not stable, having dropped more than 10% four times in the last 10 years. Intercorp Financial Services's dividend has shown consistent growth over the last 10 years.

Intercorp Financial Services's dividend payout ratio of 19.4% indicates that its high dividend yield is sustainable for the long-term.

Tfs Financial (NASDAQ:TFSL) has an annual dividend yield of 7.51%, 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 up 0.71% in the last day, and down -0.39% over the last week. Bayfirst Financial was the among the top gainers in the banks - regional industry, gaining 4.13% yesterday.

BayFirst Financial shares are trading lower after the company reported a year-over-year decrease in Q1 financial results.

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 57, which is 8 points higher than the bank industry average of 49. It passed 4 out of 7 valuation due diligence checks.

Newtekone's stock has gained 24.71% in the past year. It has overperformed other stocks in the bank industry by 1 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 22 points higher than the bank industry average of 49. It passed 5 out of 7 valuation due diligence checks.

Op Bancorp's stock has gained 11.68% in the past year. It has underperformed other stocks in the bank industry by -12 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 22 points higher than the bank industry average of 49. It passed 5 out of 7 valuation due diligence checks.

Burke & Herbert Financial Services's stock has gained 15.02% in the past year. It has underperformed other stocks in the bank industry by -8 percentage points.

37.85% of bank stocks rated by analysts are a strong buy right now. On average, analysts expect bank stocks to rise by 11.78% over the next year.

0% of bank stocks have a Zen Rating of A (Strong Buy), 6.96% of bank stocks are rated B (Buy), 77.29% are rated C (Hold), 14.65% are rated D (Sell), and 1.1% are rated F (Strong Sell).