1 Bank Stock with Solid Fundamentals and 2 We Brush Off

October 03, 2025 at 00:45 AM EDT

UBSI Cover Image

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 certainly contributed to banking stocks’ recent underperformance - over the past six months, the industry’s 17.7% gain has fallen behind the S&P 500’s 24.7% rise.

The elite companies can churn out earnings growth under any circumstance, however, and our mission at StockStory is to help you find them. On that note, here is one resilient bank stock at the top of our wish list and two we’re swiping left on.

Two Bank Stocks to Sell:

United Bankshares (UBSI)

Market Cap: $5.19 billion

With roots dating back to 1982 and a strong presence in the Mid-Atlantic region, United Bankshares (NASDAQ: UBSI) is a bank holding company that provides commercial and retail banking services through its United Bank subsidiary across multiple states.

Why Is UBSI Not Exciting?

Muted 1.7% annual revenue growth over the last two years shows its demand lagged behind its banking peers
Capital trends were unexciting over the last two years as its 7.3% annual tangible book value per share growth was below the typical banking firm
Capital generation will likely be soft over the next 12 months as Wall Street’s estimates imply tepid tangible book value per share growth of 6.9%

United Bankshares is trading at $36.73 per share, or 0.9x forward P/B. If you’re considering UBSI for your portfolio, see our FREE research report to learn more.

Eastern Bank (EBC)

Market Cap: $3.63 billion

Founded in 1818 as one of America's oldest mutual banks before converting to a public company in 2020, Eastern Bankshares (NASDAQ: EBC) operates as a bank holding company providing commercial and retail banking services primarily in Massachusetts, New Hampshire, and Rhode Island.

Why Are We Wary of EBC?

Muted 1.5% annual revenue growth over the last five years shows its demand lagged behind its banking peers
Loan losses and capital returns have eroded its tangible book value per share this cycle as its tangible book value per share declined by 6.8% annually over the last four years
Forecasted tangible book value per share decline of 5.5% for the upcoming 12 months implies profitability will deteriorate significantly

Eastern Bank’s stock price of $18.35 implies a valuation ratio of 1.1x forward P/B. Read our free research report to see why you should think twice about including EBC in your portfolio.

One Bank Stock to Watch:

Commerce Bancshares (CBSH)

Market Cap: $7.85 billion

Founded in 1865 during the post-Civil War economic boom, Commerce Bancshares (NASDAQGS:CBSH) is a Midwest-focused bank holding company that provides retail, commercial, and wealth management services to individuals and businesses.

Why Is CBSH Interesting?

Net interest margin grew by 45.7 basis points (100 basis points = 1 percentage point) over the last two years, giving the firm more chips to play with
Share repurchases over the last two years enabled its annual earnings per share growth of 7.2% to outpace its revenue gains
Market-beating return on equity illustrates that management has a knack for investing in profitable ventures

At $61.32 per share, Commerce Bancshares trades at 2.1x forward P/B. Is now a good time to buy? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.

Don’t let fear keep you from great opportunities and take a look at 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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