3 Bank Stocks Most Wall Street Analysts Are Bullish on for 2026
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December 15, 2025 — 07:49 am EST Written by Swayta Shah for Zacks-> This year brought a lot of twists and turns for investors. It began on an optimistic note as the new President, Donald Trump, was projected to be business-friendly. Then came the Liberation Day tariff spectacle in April, which upended investor confidence and led to massive stock market upheaval. Tariffs have now been implemented, though they are less severe than initially anticipated. Markets have since rebounded, reaching record highs, driven by the Federal Reserve’s interest rate cuts and AI-driven bullish trends. Amid these and several other factors, including macroeconomic uncertainty and geopolitical risks, bank stocks remained in the spotlight throughout the year. The operating environment is gradually improving, and demand for loans is rising as rates decline. Many banks undertook measures to rely less on spread income to generate top-line growth. With bank stocks in the spotlight, picking a fundamentally strong company and generating returns becomes difficult. So, investors can bet on — East West Bancorp EWBC, Valley National Bancorp VLY and F.N.B. Corporation FNB — which analysts recommend.Analysts possess deep insights into sectors and industries, enabling them to evaluate company fundamentals in the context of prevailing economic conditions. By assessing how these factors interact, they can gauge a stock’s investment potential. As a result, analyst recommendations can be valuable tools for identifying stocks capable of delivering strong returns.We shortlisted the abovementioned three bank stocks with the help of the Zacks Stock Screener. These stocks have a Zacks Rank of 1 (Strong Buy) or 2 (Buy) and a market cap of more than $5 billion. Further, more than 70% of brokers recommend these stocks as a strong buy or buy. Our research shows that such stocks provide good investment opportunities. You can see the complete list of today’s Zacks #1 Rank stocks here.The chosen banks have performed well this year (up more than 15% YTD) and have further upside potential. This optimistic stance signifies bullish analyst sentiments, reflecting solid fundamentals and expectations of outperformance.YTD Price Performance Image Source: Zacks Investment ResearchEast West Bancorp, based in Pasadena, CA, serves as a financial bridge between the United States and China by providing various consumer and commercial banking services to the Asian-American community. The company operates through more than 110 locations in the United States and China. Decent loan demand, down-rate protection hedge programs, focus on improving fee income, acquiring low-cost deposits and stabilizing funding costs are likely to support East West Bancorp’s revenues. Its enhanced capital distribution plan indicates a solid balance sheet and liquidity position.EWBC’s earnings are projected to witness year-over-year growth of 13.4% this year and 7.4% in 2026. The company has a market cap of $15.6 billion and currently carries a Zacks Rank #2. After an impressive rally in 2024, the company’s shares have gained 18.7% so far this year.
East West Bancorp’s current average target price of $125.44 represents an upside of 9.26%. Currently trading at $113.62, it has an average brokerage recommendation (ABR) of 1.65 on a scale of 1 to 5 (Strong Buy to Strong Sell). ABR is the calculated average of actual recommendations made by brokerage firms and portends the stock's future potential.Analyst Price Targets: EWBC Image Source: Zacks Investment ResearchValley National, based in Wayne, NJ, offers various commercial, retail, insurance and wealth management financial services products. The bank conducts operations through almost 230 branch offices and commercial banking offices across New Jersey, New York, Florida, Alabama, California and Illinois.Robust loan balance, strategic expansion plans and efforts to boost fee income (with plans to leverage the investments made in treasury solutions, FX and syndication platform) are likely to aid VLY’s top line. Management is open to opportunistic acquisitions if that accelerates strategic initiatives. Further, fixed assets repricing and falling rates will support margin expansion.Valley National, with a market cap of $6.6 billion and a Zacks Rank #2, has jumped 31.6% year to date following a weak performance in 2024. The company’s earnings are expected to increase 54.8% in 2025 and 28.1% in 2026. The current average price target of $13.54 represents an upside of 14.26%.Currently trading at $11.92, VLY has an ABR of 1.60 on a scale of 1 to 5.Analyst Price Targets: VLY Image Source: Zacks Investment ResearchF.N.B. Corp., headquartered in Pittsburgh, PA, provides a variety of banking and financial services. The company operates nearly 350 branches across Pennsylvania, Ohio, Maryland, West Virginia, North Carolina, South Carolina, Washington, D.C. and Virginia.Stabilizing deposit costs, decent loan demand, opportunistic buyouts and other expansion initiatives are likely to support FNB. A de novo branch expansion in high-growth Southeast and Mid-Atlantic markets, with plans to open 30 branches by 2030, will drive top-line growth. Given a solid balance sheet and liquidity position, the bank is likely to pursue an inorganic expansion strategy.FNB, with a market cap of $6.3 billion, has gained 18.6% year to date, after a decent performance last year. The company’s earnings are expected to grow 7.9% this year, surge 14.2% in 2026. The current average price target of $18.83 represents an upside of 6.69%.Currently trading at $17.52, F.N.B. Corp has an ABR of 1.40 on a scale of 1 to 5. The stock carries a Zacks Rank #2 at present.Analyst Price Targets: FNB Image Source: Zacks Investment Research Want to be tipped off early to our 10 top picks for the entirety of 2026? History suggests their performance could be sensational. From 2012 (when our Director of Research Sheraz Mian assumed responsibility for the portfolio) through November, 2025, the Zacks Top 10 Stocks gained +2,530.8%, more than QUADRUPLING the S&P 500’s +570.3%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2026. Don’t miss your chance to get in on these stocks when they’re released on January 5. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportF.N.B. Corporation (FNB) : Free Stock Analysis ReportEast West Bancorp, Inc. (EWBC) : Free Stock Analysis ReportValley National Bancorp (VLY) : Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchThe views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.This data feed is not available at this time.