2 Red-Hot Bank Stocks Rallying Into 2026
Schaeffers Investment Research·2025-12-23 20:16

Industry Overview - The banking sector has experienced a strong performance in 2025, with the Invesco KBW Bank ETF (KBWB) increasing by 31.6% and the SPDR S&P Regional Banking ETF (KRE) showing a year-to-date gain of 10.9% [1] Company Performance - Citigroup Inc (NYSE:C) has emerged as one of the top-performing bank stocks, boasting a year-to-date increase of 70.4%, attributed to successful restructuring efforts initiated in late 2023. The stock has reached a 17-year high of $120.27, with only two negative trading sessions since November 21 [2] - Fifth Third Bancorp (NASDAQ:FITB) has also shown significant gains, rising 10.8% since the beginning of December and achieving a year-to-date increase of 13.9%. The stock is currently priced at $48.17, close to its two-year high of $49.07 reached on November 25, 2024. The upcoming acquisition of Comerica (CMA) is expected to close in the first quarter of 2026, positioning Fifth Third as the ninth largest bank in the country [4]