Banks use their capital and expertise to help businesses grow while offering consumers essential <a href="https://bitcomme.com/virtra-reports-second-quarter-and-six-months-2026-financial-results/” title=”VirTra Reports Second Quarter and Six Months 2026 Financial Results”>financial products like mortgages and credit cards. But worries about an economic slowdown and potential credit deterioration have kept sentiment in check, and over the past six months, the banking industry’s 8% return has trailed the S&P 500 by 5 percentage points.
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. Taking that into account, here are two bank stocks boasting durable advantages and one that may face trouble.
One Bank Stock to Sell:
First Interstate BancSystem (FIBK)
Tracing its roots back to 1971 and still guided by founding family principles, First Interstate BancSystem (NASDAQ:FIBK) operates a network of community banks across 14 western and midwestern states, offering comprehensive banking services to individuals, businesses, and government entities.
Why Should You Sell FIBK?
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Sales stagnated over the last two years and signal the need for new growth strategies
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Projected 6.5 percentage point efficiency ratio increase over the next year signals its day-to-day expenses will rise
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Incremental sales over the last five years were less profitable as its 1.3% annual earnings per share growth lagged its revenue gains
At $38.53 per share, First Interstate BancSystem trades at 1.1x forward P/B. If you’re considering FIBK for your portfolio, see our FREE research report to learn more.
Two Bank Stocks to Watch:
Popular (BPOP)
Founded in 1893 as the first bank in Puerto Rico to serve the working class, Popular (NASDAQ:BPOP) is a financial holding company that provides retail, mortgage, and commercial banking services primarily in Puerto Rico and the mainland United States.
Why Could BPOP Be a Winner?
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Exciting net interest income outlook for the upcoming 12 months calls for 16.7% growth, an acceleration from its five-year trend
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Net interest margin increased by 58.8 basis points (100 basis points = 1 percentage point) over the last two years, giving the firm more capital to invest or return to shareholders
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Performance over the past two years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
Popular is trading at $176.24 per share, or 1.7x forward P/B. Is now the time to initiate a position? See for yourself in our full research report, it’s free.
