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2 Bank Stocks with Competitive Advantages and 1 We Question
Banks serve as the backbone of the economy, facilitating lending, deposits, and financial services that keep businesses and consumers moving forward. 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 9% return has trailed the S&P 500 by 3.3 percentage points.
The elite companies can churn out earnings growth under any circumstance, however, and our mission at StockStory is to help you find them. Keeping that in mind, here are two resilient bank stocks at the top of our wish list and one that may face trouble.
One Bank Stock to Sell:
Glacier Bancorp (GBCI)
Market Cap: $6.10 billion
Operating through seventeen distinct bank divisions with local brands and management teams, Glacier Bancorp (NYSE:GBCI) is a bank holding company that provides various banking services to individuals and businesses across eight western states.
Why Does GBCI Worry Us?
- Annual revenue growth of 8.5% over the last five years was below our standards for the banking sector
- Performance over the past five years shows its incremental sales were much less profitable, as its earnings per share fell by 4.8% annually
- Capital trends were unexciting over the last five years as its 3.1% annual tangible book value per share growth was below the typical banking firm
Glacier Bancorp’s stock price of $46.89 implies a valuation ratio of 1.4x forward P/B. Check out our free in-depth research report to learn more about why GBCI doesn’t pass our bar.
Two Bank Stocks to Watch:
Old National Bank (ONB)
Market Cap: $9.89 billion
Tracing its roots back to 1834 when Andrew Jackson was president, Old National Bancorp (NASDAQ:ONB) is a bank holding company that provides commercial and consumer loans, deposit services, wealth management, and treasury solutions primarily throughout the Midwest region.
Why Are We Fans of ONB?
- Annual revenue growth of 24.8% over the past two years was outstanding, reflecting market share gains this cycle
- Market share has increased this cycle as its 30.7% annual net interest income growth over the last five years was exceptional
- Efficiency ratio improvement of -5.4 percentage points is projected for next year as the firm achieves greater operating leverage
Old National Bank is trading at $25.85 per share, or 1.1x forward P/B. Is now the time to initiate a position? Find out in our full research report, it’s free.
Coastal Financial (CCB)
Market Cap: $741.1 million
Pioneering the intersection of traditional banking and financial technology in the Pacific Northwest, Coastal Financial (NASDAQ:CCB) operates as a bank holding company that provides traditional banking services and Banking-as-a-Service (BaaS) solutions to consumers and businesses.
Why Do We Like CCB?
- Annual net interest income growth of 37.2% over the past five years was outstanding, reflecting market share gains this cycle
- High-yielding loan book and low cost of funds lead to a best-in-class net interest margin of 7.2%
- Operating profits are forecasted to increase over the next year as it scales and becomes more productive
At $48.50 per share, Coastal Financial trades at 1.4x forward P/B. Is now the right time to buy? See for yourself in our full research report, it’s free.
Stocks We Like Even More
WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.
But our AI platform says the party isn’t over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE.
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.