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:

East West Bancorp (NASDAQ:EWBC) is the top diversified bank stock with a Zen Score of 60, which is 30 points higher than the diversified bank industry average of 30. It passed 22 out of 38 due diligence checks and has strong fundamentals. East West Bancorp has seen its stock lose -29.91% over the past year, underperforming other diversified bank stocks by -16 percentage points.

East West Bancorp has an average 1 year price target of $69.14, an upside of 32.76% from East West Bancorp's current stock price of $52.08.

East West Bancorp stock has a consensus Buy recommendation according to Wall Street analysts. Of the 7 analysts covering East West Bancorp, 42.86% have issued a Strong Buy rating, 14.29% have issued a Buy, 42.86% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Bank Of Nt Butterfield & Son (NYSE:NTB) is the second best diversified bank stock with a Zen Score of 54, which is 24 points higher than the diversified bank industry average of 30. It passed 19 out of 38 due diligence checks and has strong fundamentals. Bank Of Nt Butterfield & Son has seen its stock lose -15.18% over the past year, underperforming other diversified bank stocks by -2 percentage points.

Bank Of Nt Butterfield & Son has an average 1 year price target of $35.75, an upside of 33% from Bank Of Nt Butterfield & Son's current stock price of $26.88.

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.

Bank Of America (NYSE:BAC) is the third best diversified bank stock with a Zen Score of 50, which is 20 points higher than the diversified bank industry average of 30. It passed 18 out of 38 due diligence checks and has strong fundamentals. Bank Of America has seen its stock lose -21.77% over the past year, underperforming other diversified bank stocks by -8 percentage points.

Bank Of America has an average 1 year price target of $36.61, an upside of 27.53% from Bank Of America's current stock price of $28.71.

Bank Of America stock has a consensus Buy recommendation according to Wall Street analysts. Of the 15 analysts covering Bank Of America, 26.67% have issued a Strong Buy rating, 20% have issued a Buy, 40% have issued a hold, while 6.67% have issued a Sell rating, and 6.67% 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:

Credit Suisse Group Ag (NYSE:CS) has an annual dividend yield of N/A, which is N/A percentage points lower than the diversified bank industry average of 4.48%. Credit Suisse Group Ag's dividend payout is not stable, having dropped more than 10% three times in the last 10 years. Credit Suisse Group Ag's dividend has not shown consistent growth over the last 10 years.

Credit Suisse Group Ag's dividend payout ratio of -1.9% indicates that its dividend yield might not be sustainable for the long-term.

Bank Of Nt Butterfield & Son (NYSE:NTB) has an annual dividend yield of 8.18%, which is 4 percentage points higher than the diversified bank industry average of 4.48%. 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 37.6% indicates that its high dividend yield is sustainable for the long-term.

Bank Of Nova Scotia (NYSE:BNS) has an annual dividend yield of 6.17%, which is 2 percentage points higher than the diversified bank industry average of 4.48%. 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 60.8% indicates that its high dividend yield is sustainable for the long-term.

Diversified bank stocks were up 2.7% in the last day, and up 2.24% over the last week. East West Bancorp was the among the top gainers in the banks - diversified industry, gaining 6.09% yesterday.

Shares of banking and financial services companies are trading higher amid renewed economic optimism following US Senate passage of a debt limit bill and strong US jobs data.

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

East West Bancorp (NASDAQ:EWBC) is the most undervalued diversified bank stock based on WallStreetZen's Valuation Score. East West Bancorp has a valuation score of 86, which is 45 points higher than the diversified bank industry average of 41. It passed 6 out of 7 valuation due diligence checks.

East West Bancorp's stock has dropped -29.91% in the past year. It has underperformed other stocks in the diversified bank industry by -16 percentage points.

Sumitomo Mitsui Financial Group (NYSE:SMFG) is the second most undervalued diversified bank stock based on WallStreetZen's Valuation Score. Sumitomo Mitsui Financial Group has a valuation score of 71, which is 30 points higher than the diversified bank industry average of 41. It passed 5 out of 7 valuation due diligence checks.

Sumitomo Mitsui Financial Group's stock has gained 35.46% in the past year. It has overperformed other stocks in the diversified bank industry by 49 percentage points.

Hsbc Holdings (NYSE:HSBC) is the third most undervalued diversified bank stock based on WallStreetZen's Valuation Score. Hsbc Holdings has a valuation score of 71, which is 30 points higher than the diversified bank industry average of 41. It passed 5 out of 7 valuation due diligence checks.

Hsbc Holdings's stock has gained 13.34% in the past year. It has overperformed other stocks in the diversified bank industry by 27 percentage points.