Best Bank Stocks to Buy Right Now for Long-Term Investors

By Dave Kovaleski – Mar 28, 2026 at 4:30AM ESTKey PointsBank stocks have been trending up in recent weeks. Bank of America is trading at just 11 times forward earnings. Capital One should see earnings surge with its acquisition of Discover. Bank stocks have started to rebound a bit after a rocky start to 2026. During the past two weeks or so, bank stocks have ticked up about 2%, according to the KBW Nasdaq Bank Index, which tracks the performance of the 24 largest U.S. bank stocks. But still, the index is down about 7% year to date. There are certainly some cheap bank stocks out there right now, but are they good values or value traps? It depends on where you look, because a weak economy is not conducive to strong growth for banks. It may be premature to call the economy weak.

The Federal Reserve Bank of Atlanta, which tracks gross domestic product (GDP), is calling for a 2% growth for the first quarter, which is pretty solid. But there are many factors that could weigh on the economy, including rising prices, lower unemployment, and a protracted war in Iran. This week, Goldman Sachs (GS 2.40%) raised its forecast for inflation and lowered its GDP growth projection for the year to 2.1%. Still, that's pretty decent growth. However, Goldman Sachs also raised the possibility of a recession by 5 percentage points to 30%, given these risks. Image source: Getty Images. Banks thrive in strong, growing economies when consumers and businesses are borrowing money and investing. The decline for bank stocks so far this year is mainly tied to economic upheaval, rising inflation, and fears about credit quality and defaults. Further, the environment has cast doubt on the likelihood that rates will come down as quickly as expected. While banks generally make more interest income in a higher interest rate environment, if rates are too high, it can slow growth. Lower rates tend to accelerate lending and growth, so it's a fine line that banks walk with regard to rates. But, barring some unexpected shock that leads to a recession or economic slowdown, rates should come down and banks should be in a pretty good spot to grow in the near term and perhaps beyond. Here are two banks stocks that should thrive. 1. Bank of America Bank of America (BAC 2.55%), the second-largest U.S. bank behind JPMorgan Chase (JPM 3.02%), is dirt cheap right now, trading at 12 times earnings and 11 times forward earnings. Its low valuation, combined with strong growth prospects and the likelihood of lower interest rates, makes Bank of America a great buy right now. The bank projected 5% to 7% net interest income (NII) growth for 2026, which is higher than its main rivals. JPMorgan Chase, for example, predicts 2.6% growth in NII in 2026 to $95 billion. ExpandNYSE: BACBank of AmericaToday's Change(-2.55%) $-1.23Current Price$47.01Key Data PointsMarket Cap$337BDay's Range$46.84 - $48.2252wk Range$33.06 - $57.55Volume1.5MAvg Vol41MDividend Yield2.34% Management said on the fourth-quarter earnings call that the 5% to 7% growth rate is based on two interest rate cuts in 2026, which will drive loan and deposit growth. Wall Street analysts see significant upside for Bank of America stock. Some 79% rate the shares a "buy" with a $62 price target, which suggests 29% upside. 2.

Capital One Wall Street analysts are also bullish on Capital One Financial (COF 3.40%) stock. Capital One is a top-10 bank that focuses on credit card lending. It is one of the largest credit card issuers in the U.S. -- and that business is expanding rapidly. Last year, Capital One closed on its acquisition of Discover. The union brings one of the largest card issuers and lenders to the Discover card network, and that is expected to create a lot of synergies for the company. ExpandNYSE: COFCapital One FinancialToday's Change(-3.40%) $-6.19Current Price$175.93Key Data PointsMarket Cap$110BDay's Range$174.99 - $180.2552wk Range$143.22 - $259.63Volume240KAvg Vol5.6MDividend Yield1.59% Capital One estimates the merger will result in $2.5 billion in benefits starting in 2027, stemming from cost reductions and new revenue opportunities, officials said on the third-quarter earnings call. Part of that will come from moving some of its popular credit cards to the Discover network, which will allow it to capture more of the interchange fees. Further, analysts expect about 4% earnings growth in 2026, but in 2027, with the integration further along, they anticipate 21% earnings gain as the synergies kick in. Capital One stock has a high price-to-earnings (P/E) ratio now mainly because of the merger and associated expenses dragging on earnings. But it is trading at just 9 times forward earnings, making it a great value. Wall Street analysts have set a median price target of $275 per share, suggesting a 51% return during the next 12 months. Read NextMar 23, 2026 •By Motley Fool StaffWho Owns BlackRock? Top Shareholders & Board of DirectorsMar 18, 2026 •By Jack CaporalHow Are Banks, Card Networks, and Payment Processors Adapting to Stablecoins?Mar 17, 2026 •By Matt DiLallo5 Best High Dividend Mutual Funds to Buy in 2026Mar 16, 2026 •By Matt Frankel, CFPUpcoming Earnings Reports in 2026Mar 15, 2026 •By Patrick SandersBest 3 Blue-Chip Stocks to Buy After This Month's Market PullbackMar 14, 2026 •By Jeremy Bowman5 Most Undervalued Stocks to Buy in 2026About the AuthorDave mainly covers financials, consumer goods, and technology stocks and ETFs. He wrote for the Fool from 2019-2023 and rejoined the Fool in 2026. In the past he's covered mutual funds and institutional investments for Pensions & Investments, personal finance for S&P, money markets and bonds for Crane Data, and stocks for ValueWalk.TMFdkovaleskiStocks MentionedBank of AmericaNYSE: BAC$47.01(-2.55%)-$1.23Goldman Sachs GroupNYSE: GS$803.22(-2.36%)-$19.42JPMorgan ChaseNYSE: JPM$282.84(-3.02%)-$8.82Capital One FinancialNYSE: COF$176.10(-3.31%)-$6.02*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.