Banks play a critical role in the financial system, providing everything from commercial loans to wealth management and payment processing services. But concerns about loan losses and tightening regulations have tempered enthusiasm, and over the past six months, the banking industry has pulled back by 10.6%. This performance was particularly disheartening since the S&P 500 held its ground.

The elite companies can churn out earnings growth under any circumstance, however, and our mission at StockStory is to help you find them. With that said, here is one bank stock poised to generate sustainable market-beating returns and two we’re steering clear of.

Two BankStocks to Sell:

Renasant (RNST)

Market Cap: $3.47 billion

Founded in 1904 during a time when the South was rebuilding its economy, Renasant (NYSE: RNST) is a regional bank holding company that offers banking, wealth management, insurance, and specialized lending services throughout the Southeast.

Why Do We Think Twice About RNST?

1. Sales were flat over the last two years, indicating it’s failed to expand this cycle
2. Net interest income trends were unexciting over the last four years as its 5% annual growth was below the typical bank company
3. Forecasted tangible book value per share decline of 9.9% for the upcoming 12 months implies profitability will deteriorate significantly

Renasant’s stock price of $36.51 implies a valuation ratio of 0.9x forward P/B. Read our free research report to see why you should think twice about including RNST in your portfolio.

Northwest Bancshares (NWBI)

Market Cap: $1.60 billion

Founded in 1896 and operating across Pennsylvania, New York, Ohio, and Indiana, Northwest Bancshares (NASDAQ: NWBI) is a bank holding company that operates Northwest Bank, providing personal and business banking, investment management, and trust services.

Why Should You Dump NWBI?

1. Annual net interest income growth of 3.2% over the last four years was below our standards for the bank sector
2. Capital trends were unexciting over the last five years as its 1.4% annual tangible book value per share growth was below the typical bank company
3. Estimated tangible book value per share decline of 7.1% for the next 12 months implies a challenging profitability environment

At $12.60 per share, Northwest Bancshares trades at 1x forward P/B. To fully understand why you should be careful with NWBI, check out our full research report (it’s free).

One Bank Stock to Watch:

Wintrust Financial (WTFC)

Market Cap: $8.24 billion

Founded in 1991 as a community-focused alternative to big banks in the Chicago area, Wintrust Financial (NASDAQGS:WTFC) operates community banks in the Chicago area and provides specialty finance services including insurance premium financing and wealth management.

Why Are We Positive On WTFC?

1. Market share has increased this cycle as its 18.1% annual net interest income growth over the last four years was exceptional
2. Earnings per share grew by 7.6% annually over the last two years and trumped its peers
3. Balance sheet strength has increased this cycle as its 9.5% annual tangible book value per share growth over the last five years was exceptional

Wintrust Financial is trading at $122.64 per share, or 1.2x 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

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-small-cap company Exlservice (+354% 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.