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 +28.50% 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:

Banco Bilbao Vizcaya Argentaria Sa (NYSE:BBVA) is the #1 top diversified bank stock out of 20 with a Zen Rating of B. Stocks with a rating of B have had an average return of +17.17% per year. Learn more.

The Component Grade breakdown for Banco Bilbao Vizcaya Argentaria Sa (NYSE:BBVA) is: Value: C, Growth: B, Momentum: B, Sentiment: D, Safety: C, Financials: C, and AI: C.

Banco Bilbao Vizcaya Argentaria Sa (NYSE:BBVA) has a Due Diligence Score of 45, which is 11 points higher than the diversified bank industry average of 34.

BBVA passed 16 out of 38 due diligence checks and has strong fundamentals. Banco Bilbao Vizcaya Argentaria Sa has seen its stock return 17.61% over the past year, underperforming other diversified bank stocks by -7 percentage points.

Sumitomo Mitsui Financial Group (NYSE:SMFG) is the #2 top diversified bank stock out of 20 with a Zen Rating of C. Stocks with a rating of C have had an average return of +5.11% per year. Learn more.

The Component Grade breakdown for Sumitomo Mitsui Financial Group (NYSE:SMFG) is: Value: C, Growth: C, Momentum: B, Sentiment: B, Safety: C, Financials: C, and AI: B.

Sumitomo Mitsui Financial Group (NYSE:SMFG) has a Due Diligence Score of 15, which is -19 points lower than the diversified bank industry average of 34.

SMFG passed 6 out of 38 due diligence checks and has weak fundamentals. Sumitomo Mitsui Financial Group has seen its stock return 49.29% over the past year, overperforming other diversified bank stocks by 25 percentage points.

Citigroup (NYSE:C) is the #3 top diversified bank stock out of 20 with a Zen Rating of C. Stocks with a rating of C have had an average return of +5.11% per year. Learn more.

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

Citigroup (NYSE:C) has a Due Diligence Score of 41, which is 7 points higher than the diversified bank industry average of 34.

C passed 14 out of 38 due diligence checks and has strong fundamentals. Citigroup has seen its stock return 22.37% over the past year, underperforming other diversified bank stocks by -2 percentage points.

Citigroup has an average 1 year price target of $152.86, an upside of 24.64% from Citigroup's current stock price of $122.64.

Citigroup stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 12 analysts covering Citigroup, 58.33% have issued a Strong Buy rating, 16.67% have issued a Buy, 25% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Out of 17 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 6.1%, which is 3 percentage points higher than the diversified bank industry average of 2.88%. Natwest Group's dividend payout is not stable, having dropped more than 10% seven 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 43.6% indicates that its high dividend yield is sustainable for the long-term.

Banco Bilbao Vizcaya Argentaria Sa (NYSE:BBVA) has an annual dividend yield of 4.8%, which is 2 percentage points higher than the diversified bank industry average of 2.88%. Banco Bilbao Vizcaya Argentaria Sa's dividend payout is not stable, having dropped more than 10% eight times in the last 10 years. Banco Bilbao Vizcaya Argentaria Sa's dividend has shown consistent growth over the last 10 years.

Banco Bilbao Vizcaya Argentaria Sa's dividend payout ratio of 41.8% indicates that its high dividend yield is sustainable for the long-term.

Hsbc Holdings (NYSE:HSBC) has an annual dividend yield of 4.39%, which is 2 percentage points higher than the diversified bank industry average of 2.88%. 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 not 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.

Diversified bank stocks were down -2.03% in the last day, and up 0.34% over the last week. Natwest Group was the among the top losers in the banks - diversified industry, dropping -9% yesterday.

NatWest Group shares are trading lower after the company reported a Q3 decline in profit quarter-over-quarter and a near doubling of impairment losses.

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 33 points higher than the diversified bank industry average of 38. It passed 5 out of 7 valuation due diligence checks.

Natwest Group's stock has dropped -0.13% in the past year. It has underperformed other stocks in the diversified bank industry by -24 percentage points.

Banco Bilbao Vizcaya Argentaria Sa (NYSE:BBVA) 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.

Banco Bilbao Vizcaya Argentaria Sa has a valuation score of 57, which is 19 points higher than the diversified bank industry average of 38. It passed 4 out of 7 valuation due diligence checks.

Banco Bilbao Vizcaya Argentaria Sa's stock has gained 17.61% in the past year. It has underperformed other stocks in the diversified bank industry by -7 percentage points.

Bank Of America (NYSE:BAC) 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.

Bank Of America has a valuation score of 43, which is 5 points higher than the diversified bank industry average of 38. It passed 3 out of 7 valuation due diligence checks.

Bank Of America's stock has dropped -5.69% in the past year. It has underperformed other stocks in the diversified bank industry by -30 percentage points.

41.67% of diversified bank stocks rated by analysts are a strong buy right now. On average, analysts expect diversified bank stocks to rise by 21.78% over the next year.

0% of diversified bank stocks have a Zen Rating of A (Strong Buy), 5% of diversified bank stocks are rated B (Buy), 95% are rated C (Hold), 0% are rated D (Sell), and 0% are rated F (Strong Sell).