We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
3 Bank Stocks to Keep on Your Radar as They Reach New 52-Week Highs
Read MoreHide Full Article
Key Takeaways
C gained momentum after regulatory relief removed key consent order limits, supporting strategic plans.
BAC expects solid NII growth as rate cuts, deposit gains, and U.S. financial center expansion aid earnings.
USB is boosting fee income through acquisitions, fintech partnerships, and expanded digital lending platforms.
Investors often use 52-week highs to pick an entry or exit point for a certain company. When a stock sets a new 52-week high, it signifies positive momentum and suggests that the price has been steadily growing over the last 52 weeks. This might attract more investors and traders who regard the stock as a great performer and want to ride the current rising trend.
Stocks that reach new 52-week highs are generally prone to profit-taking, resulting in pullbacks and trend reversals. Given the stock's high price, investors frequently ask if it is overvalued. While the speculation is not completely unfounded, not all companies that reach a 52-week high are expensive. To avoid the high pricing, investors may miss out on top performers.
Major banks like Citigroup Inc. (C - Free Report) , U.S. Bancorp (USB - Free Report) , and Bank of America Corporation (BAC - Free Report) are expected to maintain their momentum and keep scaling new highs. All three banks reached a new 52-week high yesterday. In the past year, all three stocks rose more than 10%.
Price Performance
Image Source: Zacks Investment Research
To determine whether a stock has room for more upside, let us delve deeper
What Cheered Investors?
Before discussing the banks mentioned above, let us discuss the factors driving these banks to scale to a new high. The rally was underpinned by overall market strength. Market sentiments improved yesterday after economic data showed that the U.S. economy grew well above expectations in the third quarter. According to the U.S. Bureau of Economic Analysis, GDP expanded at an annualized rate of 4.3% in the third quarter of 2025, exceeding the previous quarter’s 3.8% growth. Healthy corporate earnings and resilient consumer demand reinforced confidence in the durability of the economic expansion. This, along with optimism around a stronger growth outlook for 2026, bolstered investors’ sentiments in banking stocks.
Investor sentiment also benefited from monetary policy support. The Federal Reserve has reduced interest rates by a cumulative 75 basis points this year and is widely expected to cut rates again in 2026. These actions are likely to support banks’ net interest income (NII) by stabilizing funding costs while encouraging loan growth. Lower interest rates are also expected to revive capital markets activity and accelerate deal-making, providing an additional tailwind for fee-based revenues.
In addition to these macroeconomic tailwinds, banks continue to strengthen their long-term growth prospects through investments in artificial intelligence (AI) and digital capabilities. By enhancing customer experience and expanding mobile and online platforms, banks are positioning themselves to capture a rapidly growing digital customer base. Strategic acquisitions and partnerships aimed at expanding global reach and diversifying revenue streams are also expected to support fee income growth. Together, these factors reinforced investor confidence and fueled the sector’s recent rally.
Top Picks: More Upside to Continue
Citigroup: This week, C received notable regulatory relief after the Office of the Comptroller of the Currency removed the July 2024 amendment to the bank’s 2020 consent order. Also, per the Reuters news published on MSN, the Federal Reserve has closed long-standing supervisory notices related to Citigroup’s risk management and data governance shortcomings. This milestone removes a significant overhang that previously constrained strategic flexibility and followed hundreds of millions of dollars in regulatory penalties. These actions signal growing regulatory confidence in C’s ability to execute its remediation and transformation plans. With regulatory easing, the company is better-positioned to accelerate its growth and efficiency initiatives.
The company continues to advance its multi-year strategy to streamline operations and focus on its core businesses. Since announcing plans in April 2021 to exit consumer banking in 14 markets across Asia and EMEA, the company has completed its exit in nine countries. These initiatives will free up capital and help C pursue investments in wealth management operations in Singapore, Hong Kong, the UAE, and London to stoke fee income growth. Supported by these initiatives, Citigroup projects total revenues to exceed $84 billion in 2025, with revenues projected to see a 4-5% CAGR through 2026.
Further, with declining interest rates, Citigroup’s NII growth is expected to improve as funding costs stabilize and loan demand increases. The company expects 2025 NII (excluding Markets) to grow 5.5%, indicating improved loan demand and higher deposit balances.
At present, C carries a Zacks Rank of 3 (Hold). The Zacks Consensus Estimate for earnings indicates growth of 27.4% and 32.6% for 2025 and 2026, respectively.
Earnings Estimates
Image Source: Zacks Investment Research
Citigroup hit a 52-week high, touching $56.22 before closing the session at $55.97 yesterday.
Bank of America: Despite being one of the most asset-sensitive banks in America, Bank of America is less likely to witness pressure on its NII in 2026 amid declining interest rates. This is expected to be driven by fixed-rate asset repricing, improving lending scenario, resilient consumers and a gradual fall in funding costs. Further, it is expected to witness decent deposit growth. As such, the company projects a 5-7% year-over-year increase in NII for 2026, after similar growth this year.
Bank of America’s aggressive financial center expansion strategy across the United States will solidify customer relationships and tap into new markets, driving NII growth over time. The company has entered 18 markets since 2014 and plans to open financial centers in six additional markets through 2028. This expansion has already added 170 financial centers and $18 billion in incremental deposits in those markets. The company also plans to continue strengthening its technology initiatives and spend heavily on these. These efforts help it attract and retain customers, and boost cross-selling opportunities.
The shift toward easier monetary policy is expected to support client activity, deal flow and asset values. The company plans to use data and AI across lending, risk and advisory to improve efficiency, with growth led by higher-return businesses like middle market, global banking and wealth management, alongside international expansion and broader capital solutions. Therefore, Bank of America’s non-interest income streams will likely see meaningful upside in 2026.
At present, BAC carries a Zacks Rank of 3. The Zacks Consensus Estimate for earnings indicates growth of 15.9% and 13.9% for 2025 and 2026, respectively.
Earnings Estimates
Image Source: Zacks Investment Research
Bank of America hit a 52-week high, touching $120.27 before closing the session at $119.40 yesterday.
U.S. Bancorp: The company has made several acquisitions over the years, helping it enter new markets, fortify existing markets and diversify revenue streams. In the past few years, USB has acquired Salucro Healthcare Solutions LLC, MUFG Union Bank’s core franchise and fintech platforms. In June 2025, USB partnered with Fiserv to integrate its Elan Financial Services credit card program into Fiserv’s Credit Choice Solution. These efforts will continue to strengthen the company’s fee-based businesses.
The company is expanding its digital capabilities to drive growth and improve customer convenience. In December 2025, U.S. Bancorp enhanced its Avvance point-of-sale lending platform by adding new embedded finance partners, enabling merchants to offer installment financing at the point of need, which supports loan growth and fee income. It also expanded its Coinstar partnership, increasing access to digital coin deposits across branches and retail kiosks, strengthening customer engagement and boosting low-cost deposit inflows. Further, the investment portfolio repositioning and less deposit migration will continue to aid its NII.
Image: Shutterstock
3 Bank Stocks to Keep on Your Radar as They Reach New 52-Week Highs
Key Takeaways
Investors often use 52-week highs to pick an entry or exit point for a certain company. When a stock sets a new 52-week high, it signifies positive momentum and suggests that the price has been steadily growing over the last 52 weeks. This might attract more investors and traders who regard the stock as a great performer and want to ride the current rising trend.
Stocks that reach new 52-week highs are generally prone to profit-taking, resulting in pullbacks and trend reversals. Given the stock's high price, investors frequently ask if it is overvalued. While the speculation is not completely unfounded, not all companies that reach a 52-week high are expensive. To avoid the high pricing, investors may miss out on top performers.
Major banks like Citigroup Inc. (C - Free Report) , U.S. Bancorp (USB - Free Report) , and Bank of America Corporation (BAC - Free Report) are expected to maintain their momentum and keep scaling new highs. All three banks reached a new 52-week high yesterday. In the past year, all three stocks rose more than 10%.
Price Performance
To determine whether a stock has room for more upside, let us delve deeper
What Cheered Investors?
Before discussing the banks mentioned above, let us discuss the factors driving these banks to scale to a new high. The rally was underpinned by overall market strength. Market sentiments improved yesterday after economic data showed that the U.S. economy grew well above expectations in the third quarter. According to the U.S. Bureau of Economic Analysis, GDP expanded at an annualized rate of 4.3% in the third quarter of 2025, exceeding the previous quarter’s 3.8% growth. Healthy corporate earnings and resilient consumer demand reinforced confidence in the durability of the economic expansion. This, along with optimism around a stronger growth outlook for 2026, bolstered investors’ sentiments in banking stocks.
Investor sentiment also benefited from monetary policy support. The Federal Reserve has reduced interest rates by a cumulative 75 basis points this year and is widely expected to cut rates again in 2026. These actions are likely to support banks’ net interest income (NII) by stabilizing funding costs while encouraging loan growth. Lower interest rates are also expected to revive capital markets activity and accelerate deal-making, providing an additional tailwind for fee-based revenues.
In addition to these macroeconomic tailwinds, banks continue to strengthen their long-term growth prospects through investments in artificial intelligence (AI) and digital capabilities. By enhancing customer experience and expanding mobile and online platforms, banks are positioning themselves to capture a rapidly growing digital customer base. Strategic acquisitions and partnerships aimed at expanding global reach and diversifying revenue streams are also expected to support fee income growth. Together, these factors reinforced investor confidence and fueled the sector’s recent rally.
Top Picks: More Upside to Continue
Citigroup: This week, C received notable regulatory relief after the Office of the Comptroller of the Currency removed the July 2024 amendment to the bank’s 2020 consent order. Also, per the Reuters news published on MSN, the Federal Reserve has closed long-standing supervisory notices related to Citigroup’s risk management and data governance shortcomings. This milestone removes a significant overhang that previously constrained strategic flexibility and followed hundreds of millions of dollars in regulatory penalties. These actions signal growing regulatory confidence in C’s ability to execute its remediation and transformation plans. With regulatory easing, the company is better-positioned to accelerate its growth and efficiency initiatives.
The company continues to advance its multi-year strategy to streamline operations and focus on its core businesses. Since announcing plans in April 2021 to exit consumer banking in 14 markets across Asia and EMEA, the company has completed its exit in nine countries. These initiatives will free up capital and help C pursue investments in wealth management operations in Singapore, Hong Kong, the UAE, and London to stoke fee income growth. Supported by these initiatives, Citigroup projects total revenues to exceed $84 billion in 2025, with revenues projected to see a 4-5% CAGR through 2026.
Further, with declining interest rates, Citigroup’s NII growth is expected to improve as funding costs stabilize and loan demand increases. The company expects 2025 NII (excluding Markets) to grow 5.5%, indicating improved loan demand and higher deposit balances.
At present, C carries a Zacks Rank of 3 (Hold). The Zacks Consensus Estimate for earnings indicates growth of 27.4% and 32.6% for 2025 and 2026, respectively.
Earnings Estimates
Image Source: Zacks Investment Research
Citigroup hit a 52-week high, touching $56.22 before closing the session at $55.97 yesterday.
Bank of America: Despite being one of the most asset-sensitive banks in America, Bank of America is less likely to witness pressure on its NII in 2026 amid declining interest rates. This is expected to be driven by fixed-rate asset repricing, improving lending scenario, resilient consumers and a gradual fall in funding costs. Further, it is expected to witness decent deposit growth. As such, the company projects a 5-7% year-over-year increase in NII for 2026, after similar growth this year.
Bank of America’s aggressive financial center expansion strategy across the United States will solidify customer relationships and tap into new markets, driving NII growth over time. The company has entered 18 markets since 2014 and plans to open financial centers in six additional markets through 2028. This expansion has already added 170 financial centers and $18 billion in incremental deposits in those markets. The company also plans to continue strengthening its technology initiatives and spend heavily on these. These efforts help it attract and retain customers, and boost cross-selling opportunities.
The shift toward easier monetary policy is expected to support client activity, deal flow and asset values. The company plans to use data and AI across lending, risk and advisory to improve efficiency, with growth led by higher-return businesses like middle market, global banking and wealth management, alongside international expansion and broader capital solutions. Therefore, Bank of America’s non-interest income streams will likely see meaningful upside in 2026.
At present, BAC carries a Zacks Rank of 3. The Zacks Consensus Estimate for earnings indicates growth of 15.9% and 13.9% for 2025 and 2026, respectively.
Earnings Estimates
Image Source: Zacks Investment Research
Bank of America hit a 52-week high, touching $120.27 before closing the session at $119.40 yesterday.
U.S. Bancorp: The company has made several acquisitions over the years, helping it enter new markets, fortify existing markets and diversify revenue streams. In the past few years, USB has acquired Salucro Healthcare Solutions LLC, MUFG Union Bank’s core franchise and fintech platforms. In June 2025, USB partnered with Fiserv to integrate its Elan Financial Services credit card program into Fiserv’s Credit Choice Solution. These efforts will continue to strengthen the company’s fee-based businesses.
The company is expanding its digital capabilities to drive growth and improve customer convenience. In December 2025, U.S. Bancorp enhanced its Avvance point-of-sale lending platform by adding new embedded finance partners, enabling merchants to offer installment financing at the point of need, which supports loan growth and fee income. It also expanded its Coinstar partnership, increasing access to digital coin deposits across branches and retail kiosks, strengthening customer engagement and boosting low-cost deposit inflows. Further, the investment portfolio repositioning and less deposit migration will continue to aid its NII.
At present, USB carries a Zacks Rank of 3. The Zacks Consensus Estimate for earnings indicates growth of 14.3% and 7.5% for 2025 and 2026, respectively. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings Estimates
Image Source: Zacks Investment Research
U.S. Bancorp hit a 52-week high, touching $55.13 before closing the session at $54.49 yesterday.