Banks use their capital and expertise to help businesses grow while offering consumers essential financial products like mortgages and credit cards. Still, investors are uneasy as banks face challenges from credit quality concerns and potential regulatory changes. These doubts have caused the industry to lag recently as banking stocks have collectively shed 10.6% over the past six months. This drawdown was especially discouraging since the S&P 500 held steady.

Despite the lackluster result, a few diamonds in the rough can produce earnings growth no matter what, and we started StockStory to help you find them. Taking that into account, here is one bank stock boasting a durable advantage and two best left ignored.

Two BankStocks to Sell:

WesBanco (WSBC)

Market Cap: $3.04 billion

Tracing its roots back to 1870 in West Virginia, WesBanco (NASDAQ: WSBC) is a bank holding company that provides retail and commercial banking, trust services, insurance, and investment products through its subsidiaries across several Midwestern and Mid-Atlantic states.

Why Does WSBC Worry Us?

1. Annual net interest income growth of 2.4% over the last four years was below our standards for the bank sector
2. Annual tangible book value per share declines of 1.4% for the past five years show its capital management struggled during this cycle
3. High interest payments compared to its earnings raise concerns about its ability to service its debt consistently

WesBanco’s stock price of $31.86 implies a valuation ratio of 0.8x forward P/B. Check out our free in-depth research report to learn more about why WSBC doesn’t pass our bar.

Simmons First National (SFNC)

Market Cap: $2.43 billion

With roots dating back to 1903 and a presence across Arkansas, Kansas, Missouri, Oklahoma, Tennessee, and Texas, Simmons First National (NASDAQ: SFNC) is a regional bank holding company that provides banking and financial services to individuals and businesses.

Why Is SFNC Risky?

1. Net interest income was flat over the last four years, indicating it’s failed to expand this cycle
2. Earnings per share decreased by more than its revenue over the last five years, showing each sale was less profitable
3. High debt servicing costs relative to its earnings leave little margin for error in meeting its financial obligations

At $19.21 per share, Simmons First National trades at 0.7x forward P/B. Read our free research report to see why you should think twice about including SFNC in your portfolio.

One Bank Stock to Watch:

Trustmark (TRMK)

Market Cap: $2.14 billion

Tracing its roots back to 1889 in Mississippi, Trustmark (NASDAQ: TRMK) is a financial services organization providing banking, wealth management, insurance, and mortgage services across five southeastern states.

Why Are We Fans of TRMK?

1. Decent 9.2% annual net interest income growth over the last four years beat most of its peers, showing borrowers find value in its loans
2. Earnings growth has trumped its peers over the last two years as its EPS has compounded at 9.5% annually
3. Annual tangible book value per share growth of 20.2% over the last two years was superb and indicates its capital strength increased during this cycle

Trustmark is trading at $35.27 per share, or 1x forward P/B. Is now the right time to buy? Find out in our full research report, it’s free.

Stocks We Like Even More

Market indices reached historic highs following Donald Trump’s presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth.

While this has caused many investors to adopt a "fearful" wait-and-see approach, we’re leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking 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 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today.