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Welcome to Episode #492 of the Zacks Market Edge Podcast.
Every week, host and Zacks stock strategist, Tracey Ryniec, is joined by guests to discuss the hottest investing topics in stocks, bonds, and ETFs and how it impacts your life.
This week, Tracey went solo to look at the big American banks. Five of them reported second quarter results on July 14, 2026. All five of the banks beat on the Zacks Consensus Estimate. These were great reports with strong revenue growth across multiple parts of their businesses.
Are the big banks finally back?
The Big Banks Are Moving Beyond the Financial Crisis at Last
Investors have hated the big banks ever since the Great Recession in 2008. Many abandoned them and never went back. It didn’t help that there was another banking crisis in 2023 with several large banks going out of business.
But each of these five banks are expected to grow earnings this year by the double digits. Several of them have hit new all-time highs this year and seem to be leaving the Great Recession in the rearview mirror.
5 Hot Large Cap Bank Stocks: Should You Buy?
1. The Goldman Sachs Group, Inc. ((GS - Free Report) )
Goldman Sachs is red-hot, gaining 31.1% year-to-date. This is a new all-time high. However, it’s now the most expensive of these five companies on a price-to-book (P/B) basis. Bank analysts look at P/B ratios to determine value. Bank analysts have said investors should buy at a P/B of 1.0 and sell at 2.0. Goldman Sachs has a P/B ratio of 2.7.
Earnings are expected to rise 17.8% in 2026 and another 11.4% in 2027.
All of these banks pay dividends. Goldman Sachs’ dividend is currently yielding 1.6%. It’s a Zacks Rank #2 (Buy) stock.
Wells Fargo is one of the few big banks that is lower on the year. Shares are down 6.1% year-to-date but are up 11% over the last year. It’s not surprising that Wells Fargo is among the cheaper of these bank stocks. It has a P/B ratio of 1.6.
Earnings are expected to rise 11.2% in 2026 and another 12.9% in 2027.
Wells Fargo’s dividend is the highest yielding in the group at 2.1%. It’s a Zacks Rank #3 (Hold) stock.
JPMorgan Chase is hitting new all-time highs even though shares are up just 7.7% year-to-date. However, it’s gained 21.1% over the last year.
JPMorgan Chase is expected to grow earnings by 12.2% in 2026 and another 4.9% in 2027. It’s not a cheap bank on a P/B basis, however. It’s P/B ratio is 2.6. That’s above the 2.0 that bank analysts say is fully valued.
JPMorgan Chase pays a dividend yielding 1.8%. It’s a Zacks Rank #2 (Buy) stock.
With JPMorgan Chase busting out to another new high, is it too late to get in?
Citigroup has gained 15.6% year-to-date but has added 48.7% in the last year. It’s been hitting new 5-year highs in 2026. It’s not yet back to pre-Great Recession levels.
Citigroup is expected to see the largest earnings growth this year, with the Zacks Consensus looking for 36.6%. In 2027, the Zacks Consensus is calling for another 15.5%.
Yet, it is also the cheapest of these five banks with a P/B ratio of just 1.2. A P/B ratio of 1.0 means the bank is cheap.
Citigroup pays a dividend yielding 1.8%. It’s a Zacks Rank #3 (Hold).
After a big rally over the last year, does Citigroup still have more gas left in the tank?
Bank of America is up 12% year-to-date and is finally trading at new all-time highs for the first time since the Great Recession.
Earnings are expected to jump 18.4% in 2026 and another 13.8% in 2027. It still has an attractive P/B ratio even after the breakout to new highs of 1.6.
Bank of America pays a dividend yielding 1.9%. It’s a Zacks Rank #3 (Hold) stock.
Should investors buy Bank of America now that it is finally making new highs?
What Else Should You Know About the Large Cap American Banks?
Tune into this week’s podcast to find out.
[In full disclosure, Zacks Value Investor portfolio owns shares of Citigroup.]
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5 Hot Large Cap Bank Stocks: Should You Buy?
Key Takeaways
Welcome to Episode #492 of the Zacks Market Edge Podcast.
Every week, host and Zacks stock strategist, Tracey Ryniec, is joined by guests to discuss the hottest investing topics in stocks, bonds, and ETFs and how it impacts your life.
This week, Tracey went solo to look at the big American banks. Five of them reported second quarter results on July 14, 2026. All five of the banks beat on the Zacks Consensus Estimate. These were great reports with strong revenue growth across multiple parts of their businesses.
Are the big banks finally back?
The Big Banks Are Moving Beyond the Financial Crisis at Last
Investors have hated the big banks ever since the Great Recession in 2008. Many abandoned them and never went back. It didn’t help that there was another banking crisis in 2023 with several large banks going out of business.
But each of these five banks are expected to grow earnings this year by the double digits. Several of them have hit new all-time highs this year and seem to be leaving the Great Recession in the rearview mirror.
5 Hot Large Cap Bank Stocks: Should You Buy?
1. The Goldman Sachs Group, Inc. ((GS - Free Report) )
Goldman Sachs is red-hot, gaining 31.1% year-to-date. This is a new all-time high. However, it’s now the most expensive of these five companies on a price-to-book (P/B) basis. Bank analysts look at P/B ratios to determine value. Bank analysts have said investors should buy at a P/B of 1.0 and sell at 2.0. Goldman Sachs has a P/B ratio of 2.7.
Earnings are expected to rise 17.8% in 2026 and another 11.4% in 2027.
All of these banks pay dividends. Goldman Sachs’ dividend is currently yielding 1.6%. It’s a Zacks Rank #2 (Buy) stock.
Should investors buy Goldman Sachs on the highs?
2. Wells Fargo & Co. ((WFC - Free Report) )
Wells Fargo is one of the few big banks that is lower on the year. Shares are down 6.1% year-to-date but are up 11% over the last year. It’s not surprising that Wells Fargo is among the cheaper of these bank stocks. It has a P/B ratio of 1.6.
Earnings are expected to rise 11.2% in 2026 and another 12.9% in 2027.
Wells Fargo’s dividend is the highest yielding in the group at 2.1%. It’s a Zacks Rank #3 (Hold) stock.
As it’s shares lag, is Wells Fargo a deal?
3. JPMorgan Chase & Co. ((JPM - Free Report) )
JPMorgan Chase is hitting new all-time highs even though shares are up just 7.7% year-to-date. However, it’s gained 21.1% over the last year.
JPMorgan Chase is expected to grow earnings by 12.2% in 2026 and another 4.9% in 2027. It’s not a cheap bank on a P/B basis, however. It’s P/B ratio is 2.6. That’s above the 2.0 that bank analysts say is fully valued.
JPMorgan Chase pays a dividend yielding 1.8%. It’s a Zacks Rank #2 (Buy) stock.
With JPMorgan Chase busting out to another new high, is it too late to get in?
4. Citigroup Inc. ((C - Free Report) )
Citigroup has gained 15.6% year-to-date but has added 48.7% in the last year. It’s been hitting new 5-year highs in 2026. It’s not yet back to pre-Great Recession levels.
Citigroup is expected to see the largest earnings growth this year, with the Zacks Consensus looking for 36.6%. In 2027, the Zacks Consensus is calling for another 15.5%.
Yet, it is also the cheapest of these five banks with a P/B ratio of just 1.2. A P/B ratio of 1.0 means the bank is cheap.
Citigroup pays a dividend yielding 1.8%. It’s a Zacks Rank #3 (Hold).
After a big rally over the last year, does Citigroup still have more gas left in the tank?
5. Bank of America Corp. ((BAC - Free Report) )
Bank of America is up 12% year-to-date and is finally trading at new all-time highs for the first time since the Great Recession.
Earnings are expected to jump 18.4% in 2026 and another 13.8% in 2027. It still has an attractive P/B ratio even after the breakout to new highs of 1.6.
Bank of America pays a dividend yielding 1.9%. It’s a Zacks Rank #3 (Hold) stock.
Should investors buy Bank of America now that it is finally making new highs?
What Else Should You Know About the Large Cap American Banks?
Tune into this week’s podcast to find out.
[In full disclosure, Zacks Value Investor portfolio owns shares of Citigroup.]