Banks use their capital and expertise to help businesses grow while offering consumers essential financial products like mortgages and credit cards. But worries about an economic slowdown and potential credit deterioration have kept sentiment in check, and over the past six months, the banking industry’s 8.8% return has trailed the S&P 500 by 6.8 percentage points.
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 boasting a durable advantage and two best left ignored.
Two Bank Stocks to Sell:
OceanFirst Financial (OCFC)
Market Cap: $1.05 billion
Tracing its roots back to 1902 when it began serving coastal New Jersey communities, OceanFirst Financial (NASDAQ: OCFC) operates as a regional bank holding company that provides commercial and consumer banking services primarily in New Jersey and surrounding metropolitan areas.
Why Is OCFC Risky?
- Net interest income trends were unexciting over the last five years as its 1.9% annual growth was below the typical banking firm
- Net interest margin shrank by 41.3 basis points (100 basis points = 1 percentage point) over the last two years, suggesting the profitability of its loan book is decreasing or the market is becoming more competitive
- Performance over the past five years shows its incremental sales were much less profitable, as its earnings per share fell by 5.1% annually
OceanFirst Financial’s stock price of $18.24 implies a valuation ratio of 0.6x forward P/B. If you’re considering OCFC for your portfolio, see our FREE research report to learn more.
Glacier Bancorp (GBCI)
Market Cap: $5.89 billion
Operating through seventeen distinct bank divisions with local brands and management teams, Glacier Bancorp (NYSE: GBCI) is a bank holding company that provides various banking services to individuals and businesses across eight western states.
Why Does GBCI Worry Us?
- Net interest income trends were unexciting over the last five years as its 7.1% annual growth was below the typical banking firm
- Weak unit economics are reflected in its net interest margin of 2.8%, one of the worst among bank companies
- Earnings per share fell by 3.1% annually over the last five years while its revenue grew, showing its incremental sales were much less profitable
At $49.68 per share, Glacier Bancorp trades at 1.6x forward P/B. To fully understand why you should be careful with GBCI, check out our full research report (it’s free).
One Bank Stock to Buy:
The Bancorp (TBBK)
Market Cap: $3.60 billion
Operating behind the scenes of many popular fintech apps and prepaid cards you might use daily, The Bancorp (NASDAQ: TBBK) is a bank holding company that specializes in providing banking services to fintech companies and offering specialty lending products.
Why Should You Buy TBBK?
- Market share has increased this cycle as its 15.2% annual net interest income growth over the last five years was exceptional
- Differentiated product suite results in a Strong performance of its loan book leads to a High-yielding loan book and low cost of funds result in a best-in-class net interest margin of 4.7%
- Share repurchases over the last two years enabled its annual earnings per share growth of 24.1% to outpace its revenue gains
The Bancorp is trading at $78.19 per share, or 3.9x forward P/B. Is now a good time to buy? See for yourself in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.
The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check 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 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
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
