Sectors & IndustriesFinancial ServicesBanks - Diversified

Best Diversified Bank Stocks to Buy Now (2023)

Top diversified bank stocks in 2023 ranked by overall Zen Score. See the best diversified bank stocks to buy now, according to analyst forecasts for the banks - diversified industry.

According to Zen Score, the 3 best diversified bank stocks to buy right now are:

Bank Of Nt Butterfield & Son (NYSE:NTB) is the top diversified bank stock with a Zen Score of 52, which is 23 points higher than the diversified bank industry average of 29. It passed 18 out of 38 due diligence checks and has strong fundamentals. Bank Of Nt Butterfield & Son has seen its stock lose -13.01% over the past year, overperforming other diversified bank stocks by 3 percentage points.

Bank Of Nt Butterfield & Son has an average 1 year price target of $36.67, an upside of 10.81% from Bank Of Nt Butterfield & Son's current stock price of $33.09.

Bank Of Nt Butterfield & Son stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 4 analysts covering Bank Of Nt Butterfield & Son, 75% have issued a Strong Buy rating, 25% have issued a Buy, 0% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

East West Bancorp (NASDAQ:EWBC) is the second best diversified bank stock with a Zen Score of 50, which is 21 points higher than the diversified bank industry average of 29. It passed 18 out of 38 due diligence checks and has strong fundamentals. East West Bancorp has seen its stock lose -11.46% over the past year, overperforming other diversified bank stocks by 4 percentage points.

East West Bancorp has an average 1 year price target of $86.00, an upside of 9.85% from East West Bancorp's current stock price of $78.29.

East West Bancorp stock has a consensus Buy recommendation according to Wall Street analysts. Of the 4 analysts covering East West Bancorp, 50% have issued a Strong Buy rating, 0% have issued a Buy, 50% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Hsbc Holdings (NYSE:HSBC) is the third best diversified bank stock with a Zen Score of 43, which is 14 points higher than the diversified bank industry average of 29. It passed 16 out of 38 due diligence checks and has strong fundamentals. Hsbc Holdings has seen its stock lose -4.34% over the past year, overperforming other diversified bank stocks by 11 percentage points.

Hsbc Holdings stock has a consensus Hold recommendation according to Wall Street analysts. Of the 1 analyst covering Hsbc Holdings, 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 16 diversified bank stocks that have issued dividends in the past year, the 3 diversified bank stocks with the highest dividend yields are:

Canadian Imperial Bank Of Commerce (NYSE:CM) has an annual dividend yield of 6.91%, which is 3 percentage points higher than the diversified bank industry average of 3.71%. Canadian Imperial Bank Of Commerce's dividend payout is not stable, having dropped more than 10% two times in the last 10 years. Canadian Imperial Bank Of Commerce's dividend has not shown consistent growth over the last 10 years.

Canadian Imperial Bank Of Commerce's dividend payout ratio of 50% indicates that its high dividend yield is sustainable for the long-term.

Bank Of Nt Butterfield & Son (NYSE:NTB) has an annual dividend yield of 6.65%, which is 3 percentage points higher than the diversified bank industry average of 3.71%. Bank Of Nt Butterfield & Son's dividend payout is stable, having never dropped by more than 10% in the last 10 years. Bank Of Nt Butterfield & Son's dividend has shown consistent growth over the last 10 years.

Bank Of Nt Butterfield & Son's dividend payout ratio of 45.2% indicates that its high dividend yield is sustainable for the long-term.

Bank Of Nova Scotia (NYSE:BNS) has an annual dividend yield of 5.73%, which is 2 percentage points higher than the diversified bank industry average of 3.71%. Bank Of Nova Scotia's dividend payout is not stable, having dropped more than 10% two times in the last 10 years. Bank Of Nova Scotia's dividend has shown consistent growth over the last 10 years.

Bank Of Nova Scotia's dividend payout ratio of 51.8% indicates that its high dividend yield is sustainable for the long-term.

Diversified bank stocks were down -0.3% in the last day, and up 1.6% over the last week.

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

Based on WallStreetZen's Valuation Score, the 3 most undervalued diversified bank stocks right now are:

Hsbc Holdings (NYSE:HSBC) is the most undervalued diversified bank stock based on WallStreetZen's Valuation Score. Hsbc Holdings has a valuation score of 57, which is 28 points higher than the diversified bank industry average of 29. It passed 4 out of 7 valuation due diligence checks.

Hsbc Holdings's stock has dropped -4.34% in the past year. It has overperformed other stocks in the diversified bank industry by 11 percentage points.

Natwest Group (NYSE:NWG) is the second most undervalued diversified bank stock based on WallStreetZen's Valuation Score. Natwest Group has a valuation score of 57, which is 28 points higher than the diversified bank industry average of 29. It passed 4 out of 7 valuation due diligence checks.

Natwest Group's stock has gained 1.22% in the past year. It has overperformed other stocks in the diversified bank industry by 17 percentage points.

Barclays (NYSE:BCS) is the third most undervalued diversified bank stock based on WallStreetZen's Valuation Score. Barclays has a valuation score of 57, which is 28 points higher than the diversified bank industry average of 29. It passed 4 out of 7 valuation due diligence checks.

Barclays's stock has dropped -20.02% in the past year. It has underperformed other stocks in the diversified bank industry by -4 percentage points.