Banks use their capital and expertise to help businesses grow while offering consumers essential financial products like mortgages and credit cards. But concerns about loan losses and tightening regulations have tempered enthusiasm, capping the upside for banking stocks lately - over the past six months, the industry’s flat return has trailed the S&P 500’s 5.2% gain.

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 best left ignored.

Two BankStocks to Sell:

United Bankshares (UBSI)

Market Cap: $5.18 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 Do We Think Twice About UBSI?

1. Sales were flat over the last two years, indicating it’s failed to expand this cycle
2. Muted 6.4% annual net interest income growth over the last four years shows its demand lagged behind its bank peers
3. Muted 7.3% annual tangible book value per share growth over the last two years shows its capital generation lagged behind its bank peers

United Bankshares is trading at $37.12 per share, or 0.9x forward P/B. To fully understand why you should be careful with UBSI, check out our full research report (it’s free).

Dynex Capital (DX)

Market Cap: $1.34 billion

Operating in the financial markets since 1988 with a focus on capital preservation during economic turbulence, Dynex Capital (NYSE: DX) is a mortgage real estate investment trust that invests primarily in government-backed residential mortgage securities to generate income for shareholders.

Why Are We Hesitant About DX?

1. Earnings per share have contracted by 34% annually over the last five years, a headwind for returns as stock prices often echo long-term EPS performance
2. Products and services are facing significant credit quality challenges during this cycle as tangible book value per share has declined by 5.1% annually over the last five years

Dynex Capital’s stock price of $12.50 implies a valuation ratio of 1x forward P/B. Check out our free in-depth research report to learn more about why DX doesn’t pass our bar.

One Bank Stock to Watch:

Stock Yards Bank (SYBT)

Market Cap: $2.26 billion

Founded in 1904 in Louisville and named after the city's historic livestock market district, Stock Yards Bancorp (NASDAQ: SYBT) operates a regional bank providing commercial banking, wealth management, and trust services across Kentucky, Indiana, and Ohio.

Why Do We Watch SYBT?

1. Annual net interest income growth of 17.3% over the past four years was outstanding, reflecting market share gains this cycle
2. Earnings per share grew by 10.1% annually over the last five years and trumped its peers
3. Stellar return on equity showcases management’s ability to surface highly profitable business ventures

At $76.79 per share, Stock Yards Bank trades at 2.2x forward P/B. Is now the right time to buy? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

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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