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 5.5% return has trailed the S&P 500 by 4.9 percentage points.
Only some companies are subject to these dynamics, however, and a handful of high-quality businesses can deliver earnings growth in any environment. Keeping that in mind, here is one resilient bank stock at the top of our wish list and two best left ignored.
Two Bank Stocks to Sell:
Atlantic Union Bankshares (AUB)
Market Cap: $5.34 billion
Tracing its roots back to 1902 when it first opened its doors in Virginia, Atlantic Union Bankshares (NYSE: AUB) is a full-service regional bank providing commercial and retail banking, wealth management, and insurance services throughout Virginia and parts of Maryland and North Carolina.
Why Is AUB Not Exciting?
- Incremental sales over the last two years were less profitable as its earnings per share were flat while its revenue grew
- Flat tangible book value per share over the last five years suggest it must find different ways to enhance shareholder value during this cycle
- Low tier one capital ratio of 9.8% indicates the company may struggle to maintain adequate liquidity during periods of economic stress
At $37.44 per share, Atlantic Union Bankshares trades at 1.1x forward P/B. Dive into our free research report to see why there are better opportunities than AUB.
Columbia Financial (CLBK)
Market Cap: $1.60 billion
Founded during the Roaring Twenties in 1926 and headquartered in Fair Lawn, New Jersey, Columbia Financial (NASDAQ: CLBK) operates federally chartered savings banks in New Jersey that offer traditional banking services including loans, deposits, and insurance products.
Why Is CLBK Risky?
- Net interest income stagnated over the last five years and signal the need for new growth strategies
- Inferior net interest margin of 2% means it must compensate for lower profitability through increased loan originations
- Falling earnings per share over the last five years has some investors worried as stock prices ultimately follow EPS over the long term
Columbia Financial is trading at $15.31 per share, or 1.4x forward P/B. If you’re considering CLBK for your portfolio, see our FREE research report to learn more.
One Bank Stock to Watch:
Rocket Companies (RKT)
Market Cap: $65.58 billion
Born in Detroit during the 1980s and evolving into a tech-driven financial powerhouse, Rocket Companies (NYSE: RKT) is a fintech company that provides digital mortgage lending, real estate services, and personal finance solutions through its technology platform.
Why Does RKT Catch Our Eye?
- Net interest income outlook for the upcoming 12 months is outstanding and shows it’s on track to gain market share
- Expected tangible book value per share growth of 427% for the next year suggests its capital position will strengthen considerably
- Stellar return on equity showcases management’s ability to surface highly profitable business ventures
Rocket Companies’s stock price of $23.37 implies a valuation ratio of 3.6x forward P/B. Is now a good time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.
Don’t wait for the next volatility shock. Check out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
