The Best Bank Stocks to Buy

Detailed summary

Banks, from large money centers to regional institutions, offer essential services like accounts, loans, and wealth management, catering to both global markets and local…

Banks, from large money centers to regional institutions, offer essential services like accounts, loans, and wealth management, catering to both global markets and local communities. US banks reported strong third-quarter results, earned while navigating volatility in the economy.

“US bank shares were weighed down by shifting macro concerns in 2026, first by higher unemployment from artificial intelligence disruption, then by higher inflation, the Federal Reserve’s rate hikes, rising 10-year Treasury yields, and renewed AI disruption worries after the launch of Meta’s AI agent, Muse,” say Morningstar analysts Maoyuan Chen and Austin Taggart.

“While pockets of opportunity persist, we view the US banking sector as fairly valued, with regional banks trading at a more attractive valuation than money center banks,” they added.

In the year to date, the Morningstar US Financial Services Index rose 7.09%, while the Morningstar US Total Market Index gained 11.16%.

These were the most undervalued bank stocks that Morningstar’s analysts cover as of Nov. 10, 2026.

To come up with our list of the best bank stocks to buy now, we screened for:

Here’s a little more about each of the best bank stocks to buy, including commentary from the Morningstar analysts who cover each company. All data is as of Nov. 10, 2026.

Nu Holdings is the most affordable stock on our list of the best bank stocks to buy. Nubank is a Brazilian financial technology firm that offers digital banking services in Brazil, Mexico, and Colombia. The stock is trading 27% below our fair value estimate of $16.60 per share.

NatWest Group derives around 90% of its total income from the United Kingdom. Trading 22% below our fair value estimate, NatWest Group has an economic moat rating of narrow. We think shares of this stock are worth $20.30 per share.

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