Sectors & IndustriesFinancial ServicesBanks - Diversified

Best Diversified Bank Stocks to Buy Now (2026)

Top diversified 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 diversified 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 diversified bank stocks to buy right now are:

Sumitomo Mitsui Financial Group (NYSE:SMFG) is the #1 top diversified bank stock out of 17 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 Sumitomo Mitsui Financial Group (NYSE:SMFG) is: Value: C, Growth: B, Momentum: B, Sentiment: C, Safety: C, Financials: C, and AI: B.

Sumitomo Mitsui Financial Group (NYSE:SMFG) has a Due Diligence Score of 9, which is -21 points lower than the diversified bank industry average of 30. Although this number is below the industry average, our proven quant model rates SMFG as a "B".

SMFG passed 3 out of 38 due diligence checks and has weak fundamentals. Sumitomo Mitsui Financial Group has seen its stock return 19.74% over the past year, underperforming other diversified bank stocks by -11 percentage points.

Natwest Group (NYSE:NWG) is the #2 top diversified bank stock out of 17 with a Zen Rating of C. Stocks with a rating of C have had an average return of +7.53% per year. Learn more.

The Component Grade breakdown for Natwest Group (NYSE:NWG) is: Value: B, Growth: C, Momentum: C, Sentiment: A, Safety: C, Financials: C, and AI: A.

Natwest Group (NYSE:NWG) has a Due Diligence Score of 47, which is 17 points higher than the diversified bank industry average of 30.

NWG passed 16 out of 38 due diligence checks and has strong fundamentals. Natwest Group has seen its stock return 18.91% over the past year, underperforming other diversified bank stocks by -11 percentage points.

Canadian Imperial Bank Of Commerce (NYSE:CM) is the #3 top diversified bank stock out of 17 with a Zen Rating of C. Stocks with a rating of C have had an average return of +7.53% per year. Learn more.

The Component Grade breakdown for Canadian Imperial Bank Of Commerce (NYSE:CM) is: Value: C, Growth: C, Momentum: B, Sentiment: A, Safety: C, Financials: D, and AI: B.

Canadian Imperial Bank Of Commerce (NYSE:CM) has a Due Diligence Score of 19, which is -11 points lower than the diversified bank industry average of 30.

CM passed 8 out of 38 due diligence checks and has weak fundamentals. Canadian Imperial Bank Of Commerce has seen its stock return 67.87% over the past year, overperforming other diversified bank stocks by 37 percentage points.

Out of 9 diversified bank stocks that have issued dividends in the past year, the 3 diversified bank stocks with the highest dividend yields are:

Natwest Group (NYSE:NWG) has an annual dividend yield of 6.08%, which is 3 percentage points higher than the diversified bank industry average of 2.64%. Natwest Group's dividend payout is not stable, having dropped more than 10% six times in the last 10 years. Natwest Group's dividend has shown consistent growth over the last 10 years.

Natwest Group's dividend payout ratio of 34.6% indicates that its high dividend yield is sustainable for the long-term.

Hsbc Holdings (NYSE:HSBC) has an annual dividend yield of 4.73%, which is 2 percentage points higher than the diversified bank industry average of 2.64%. Hsbc Holdings's dividend payout is not stable, having dropped more than 10% ten times in the last 10 years. Hsbc Holdings's dividend has shown consistent growth over the last 10 years.

Hsbc Holdings's dividend payout ratio of 54.5% indicates that its high dividend yield is sustainable for the long-term.

East West Bancorp (NASDAQ:EWBC) has an annual dividend yield of 2.46%, which is the same as the diversified bank industry average of 2.64%. East West Bancorp's dividend payout is stable, having never dropped by more than 10% in the last 10 years. East West Bancorp's dividend has shown consistent growth over the last 10 years.

East West Bancorp's dividend payout ratio of 27.1% indicates that its dividend yield is sustainable for the long-term.

Diversified bank stocks were up 0.4% in the last day, and up 0.22% over the last week.

We couldn't find a catalyst for why diversified 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 diversified bank stocks right now are:

Natwest Group (NYSE:NWG) is the most undervalued diversified bank stock based on its Valuation Rating of B. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Natwest Group has a valuation score of 71, which is 34 points higher than the diversified bank industry average of 37. It passed 5 out of 7 valuation due diligence checks.

Natwest Group's stock has gained 18.91% in the past year. It has underperformed other stocks in the diversified bank industry by -11 percentage points.

Bank Of Nt Butterfield & Son (NYSE:NTB) is the second most undervalued diversified bank stock based on its Valuation Rating of C. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Bank Of Nt Butterfield & Son has a valuation score of 29, which is -8 points higher than the diversified bank industry average of 37. It passed 2 out of 7 valuation due diligence checks.

Bank Of Nt Butterfield & Son's stock has gained 30.87% in the past year. It has performed in line with other stocks in the diversified bank industry.

Barclays (NYSE:BCS) is the third most undervalued diversified bank stock based on its Valuation Rating of C. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Barclays has a valuation score of 71, which is 34 points higher than the diversified bank industry average of 37. It passed 5 out of 7 valuation due diligence checks.

Barclays's stock has gained 29.33% in the past year. It has underperformed other stocks in the diversified bank industry by -1 percentage points.

40% of diversified bank stocks rated by analysts are a buy right now. On average, analysts expect diversified bank stocks to rise by 23.99% over the next year.

0% of diversified bank stocks have a Zen Rating of A (Strong Buy), 5.88% of diversified bank stocks are rated B (Buy), 94.12% are rated C (Hold), 0% are rated D (Sell), and 0% are rated F (Strong Sell).