RBC Capital Markets has published its latest rankings of leading U.S. banking stocks, highlighting institutions with strong financial performance, strategic positioning, and growth potential in today’s economic climate.
Topping the list is U.S. Bancorp (NYSE:USB), which analysts say is at an “inflection point,” where previous challenges are beginning to turn into opportunities. With a market capitalization of $77.3 billion and trading at 11.3 times its estimated 2025 earnings, USB delivers an attractive 4.3% dividend yield.
Over the past 10-20 years, U.S. Bancorp has consistently ranked among the best-performing commercial banks in the U.S. New CEO Gunjan Kedia, appointed in April 2025, has upheld the bank’s financial objectives, including achieving more than 200 basis points of operating leverage. Its diversified revenue mix—58% net interest income and 42% fee income—has been a key driver of its best-in-class return on equity.
The bank reported second-quarter 2025 earnings per share of $1.11, up 13% from a year earlier, and also lowered its prime lending rate to 7.25%. Truist Securities has raised its price target on USB, citing strong growth potential.
Wells Fargo & Company (NYSE:WFC) takes the second spot, with a $265.6 billion market cap and trading at 14.0 times 2025 projected earnings. A key boost for Wells Fargo comes from the Federal Reserve lifting the asset growth restriction from its 2018 enforcement order, allowing the bank to resume expansion plans.
Under CEO Charlie Scharf, Wells Fargo has improved its efficiency ratio from 79% in Q4 2019 to 65% in Q2 2025, while maintaining a strong CET1 capital ratio of 11.1%. Recently, the bank announced a reduction of its prime rate to 7.25% and received a reaffirmed Overweight rating from Piper Sandler, highlighting long-term growth opportunities.
American Express (NYSE:AXP) claims third place, with a market cap of $233.8 billion and a 1.0% dividend yield, trading at 22.0 times 2025 estimated earnings. RBC emphasizes the company’s “top-of-wallet” status among premium consumers, supporting stable revenue growth despite industry-wide moderation in billings.
The company’s high-quality portfolio has demonstrated resilience in losses and delinquencies, consistently outperforming peers amid consumer pressures. American Express reported second-quarter 2025 earnings per share of $4.08 and signed a multi-year agreement to become the Official Payments Partner of Hard Rock Stadium. The company also saw its price target lifted by Wells Fargo, although Freedom Capital Markets downgraded it to Sell.
Huntington Bancshares Incorporated (NASDAQ:HBAN) ranks fourth, with a $25.7 billion market cap and a 3.6% dividend yield. Trading at 12.1 times 2025 estimated earnings, Huntington has emerged as a consistent performer, balancing risk and reward.
Management targets 6-9% PPNR growth over the medium term, driven by strategic investments in specialty commercial sectors and expansion into the Carolinas and Texas. Huntington reported second-quarter 2025 core earnings per share of $0.38 and lowered its prime rate to 7.25%. Analysts were mixed, with BofA Securities raising its price target, while TD Cowen issued a reduction.
Rounding out the top five is Wintrust Financial Corporation (NASDAQ:WTFC), which has a $9.0 billion market cap, trades at 12.1 times 2025 estimated earnings, and offers a 1.5% dividend yield. The bank holds a dominant market share in Chicago and has achieved consistent mid-to-high single-digit loan growth while maintaining strong asset quality.
Wintrust reported strong second-quarter 2025 results, with earnings per share of $2.78 and revenue of $670.78 million, exceeding analyst expectations. Following the report, Citi and Keefe, Bruyette & Woods both raised their price targets on the company.
All five banks face similar risks, particularly potential economic downturns that could impact credit quality and increase loan loss provisions.
This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.