2 Bank Stocks to Target This Week and 1 We Ignore Radek Strnad Wed, October 14, 2026 at 3:43 AM EDT 4 min read FRME -0.48% ^GSPC -0.02% TBBK +1.14% EWBC -0.41% Explore stocks on Coinbase Trading disclosure Trading disclosure The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
Banks serve as the backbone of the economy, facilitating lending, deposits, and financial services that keep businesses and consumers moving forward. Still, investors are uneasy as banks face challenges from credit quality concerns and potential regulatory changes. These doubts have caused the industry to lag recently as banking stocks have collectively shed 3% over the past six months. This drop is a far cry from the S&P 500's 12% ascent.
Despite the lackluster result, a few diamonds in the rough can produce earnings growth no matter what, and we started StockStory to help you find them. On that note, here are two resilient bank stocks at the top of our wish list and one that may face trouble.
Dating back to 1893 when it first opened its doors in Indiana, First Merchants (NASDAQ:FRME) is a Midwest regional bank providing commercial, consumer, and wealth management services through branches in Indiana, Ohio, Michigan, and Illinois.
Why Do We Think Twice About FRME?
Sales trends were unexciting over the last two years as its 6.4% annual growth was below the typical banking company
Muted 7.8% annual net interest income growth over the last five years shows its demand lagged behind its banking peers
Annual earnings per share growth of 1.7% underperformed its revenue over the last five years, showing its incremental sales were less profitable
First Merchants's stock price of $39.07 implies a valuation ratio of 0.9x forward P/B. To fully understand why you should be careful with FRME, check out our full research report (it's free).
Operating behind the scenes of many popular fintech apps and prepaid cards you might use daily, The Bancorp (NASDAQ:TBBK) is a bank holding company that specializes in providing banking services to fintech companies and offering specialty lending products.
Annual revenue growth of 18% over the past two years was outstanding, reflecting market share gains this cycle
Anticipated efficiency ratio improvement of 6.7 percentage points over the next year signals it will gain leverage on its fixed costs and become more productive
Share buybacks catapulted its annual earnings per share growth to 25%, which outperformed its revenue gains over the last five years
The Bancorp is trading at $49.85 per share, or 2.7x forward P/B. Is now the right time to buy? See for yourself in our in-depth research report, it's free.
As the largest independent bank in the U.S. focused on bridging financial services between America and Asia, East West Bancorp (NASDAQ:EWBC) operates a commercial bank that provides personal and business banking services with a unique focus on facilitating U.S.-Asia cross-border transactions.
Annual net interest income growth of 13.9% over the last five years beat the sector average and underscores the value of its loans
Annual tangible book value per share growth of 12.3% over the past five years was outstanding, reflecting strong capital accumulation this cycle
ROE punches in at 17.1%, illustrating management's expertise in identifying profitable investments
At $125.50 per share, East West Bank trades at 1.8x forward P/B. Is now the time to initiate a position? Find out in our full research report, it's free.
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