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 1.1% over the past six months. This drawdown was disheartening since the S&P 500 gained 4.5%.

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. On that note, here is one bank stock boasting a durable advantage and two we’re steering clear of.

Two BankStocks to Sell:

QCR Holdings (QCRH)

Market Cap: $1.25 billion

With roots dating back to 1993 and a name reflecting its original Quad Cities market, QCR Holdings (NASDAQGM:QCRH) operates four community banks across Iowa and Missouri, providing commercial, consumer banking, and trust services to businesses and individuals.

Why Are We Wary of QCRH?

1. Annual revenue growth of 2.7% over the last two years was below our standards for the bank sector
2. 29 basis point (100 basis points = 1 percentage point) decline in its net interest margin over the last two years reflects the company’s willingness to accept lower yields to defend its market position
3. High debt servicing costs relative to its earnings leave little margin for error in meeting its financial obligations

At $73.54 per share, QCR Holdings trades at 1.1x forward P/B. Read our free research report to see why you should think twice about including QCRH in your portfolio.

BOK Financial (BOKF)

Market Cap: $6.50 billion

Tracing its roots back to 1910 when Oklahoma was still a young state, BOK Financial (NASDAQ: BOKF) is a regional bank holding company that provides commercial banking, consumer banking, and wealth management services across eight states in the central and southwestern US.

Why Does BOKF Give Us Pause?

1. 1.6% annual revenue growth over the last two years was slower than its bank peers
2. Net interest income trends were unexciting over the last four years as its 2.3% annual growth was below the typical bank company
3. Net interest margin dropped by 47.7 basis points (100 basis points = 1 percentage point) over the last two years, implying the company’s spreads fell as competitors entered the market

BOK Financial is trading at $101.14 per share, or 1.1x forward P/B. If you’re considering BOKF for your portfolio, see our FREE research report to learn more.

One Bank Stock to Watch:

Republic Bancorp (RBCAA)

Market Cap: $1.45 billion

With roots dating back to 1974 and operating across multiple states including Kentucky, Indiana, Florida, Ohio, and Tennessee, Republic Bancorp (NASDAQGS:RBCA.A) is a Kentucky-based financial holding company that operates a bank offering traditional banking, mortgage services, and specialized financial products.

Why Does RBCAA Stand Out?

1. Impressive 10.3% annual revenue growth over the last two years indicates it’s winning market share this cycle
2. Differentiated product suite leads to a Strong performance of its loan book results in a High-yielding loan book and low cost of funds are reflected in its best-in-class net interest margin of 5%
3. Additional sales over the last two years increased its profitability as the 13.2% annual growth in its earnings per share outpaced its revenue

Republic Bancorp’s stock price of $74.26 implies a valuation ratio of 1.3x forward P/B. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.

Stocks We Like Even More

Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.

While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 9 Market-Beating Stocks. 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-micro-cap company Kadant (+351% 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

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