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 316 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 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 "B".

BSBR passed 2 out of 38 due diligence checks and has weak fundamentals. Banco Santander Sa has seen its stock return 26.04% over the past year, overperforming other bank stocks by 10 percentage points.

Franklin Financial Services (NASDAQ:FRAF) is the #2 top bank stock out of 316 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: B, Safety: C, Financials: C, and AI: B.

Franklin Financial Services (NASDAQ:FRAF) has a Due Diligence Score of 37, which is -2 points lower than the bank industry average of 39. Although this number is below the industry average, our proven quant model rates FRAF as a "B".

FRAF passed 12 out of 38 due diligence checks and has average fundamentals. Franklin Financial Services has seen its stock return 45.43% over the past year, overperforming other bank stocks by 29 percentage points.

Chemung Financial (NASDAQ:CHMG) is the #3 top bank stock out of 316 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 Chemung Financial (NASDAQ:CHMG) is: Value: B, Growth: B, Momentum: C, Sentiment: C, Safety: C, Financials: D, and AI: A.

Chemung Financial (NASDAQ:CHMG) has a Due Diligence Score of 45, which is 6 points higher than the bank industry average of 39.

CHMG passed 15 out of 38 due diligence checks and has strong fundamentals. Chemung Financial has seen its stock return 12.78% over the past year, underperforming other bank stocks by -3 percentage points.

Chemung Financial has an average 1 year price target of $64.00, an upside of 19.47% from Chemung Financial's current stock price of $53.57.

Chemung Financial stock has a consensus Hold recommendation according to Wall Street analysts. Of the 1 analyst covering Chemung Financial, 0% have issued a Strong Buy rating, 0% have issued a Buy, 100% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Out of 259 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 2.8%.

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

Newtekone (NASDAQ:NEWT) has an annual dividend yield of 8.61%, which is 6 percentage points higher than the bank industry average of 2.8%. Newtekone's dividend payout is not stable, having dropped more than 10% six times in the last 10 years. Newtekone's dividend has not shown consistent growth over the last 10 years.

Newtekone's dividend payout ratio of 34.4% indicates that its high dividend yield is sustainable for the long-term.

Tfs Financial (NASDAQ:TFSL) has an annual dividend yield of 7.9%, which is 5 percentage points higher than the bank industry average of 2.8%. 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 0.29% in the last day, and up 1.94% over the last week.

We couldn't find a catalyst for why bank stocks are up.

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 21 points higher than the bank industry average of 50. It passed 5 out of 7 valuation due diligence checks.

Newtekone's stock has dropped -9.29% in the past year. It has underperformed other stocks in the bank industry by -25 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 86, which is 36 points higher than the bank industry average of 50. It passed 6 out of 7 valuation due diligence checks.

Op Bancorp's stock has gained 12.4% in the past year. It has underperformed other stocks in the bank industry by -4 percentage points.

Northeast Community Bancorp (NASDAQ:NECB) 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.

Northeast Community Bancorp has a valuation score of 57, which is 7 points higher than the bank industry average of 50. It passed 4 out of 7 valuation due diligence checks.

Northeast Community Bancorp's stock has gained 2.22% in the past year. It has underperformed other stocks in the bank industry by -14 percentage points.

34.42% of bank stocks rated by analysts are a strong buy right now. On average, analysts expect bank stocks to rise by 13.62% over the next year.

0% of bank stocks have a Zen Rating of A (Strong Buy), 6.99% of bank stocks are rated B (Buy), 81.62% are rated C (Hold), 9.56% are rated D (Sell), and 1.84% are rated F (Strong Sell).