3 Big Bank Stocks to Sell Right Now

Core Insights - The six largest U.S. banks experienced a significant increase in performance in 2025, with an average rise of 42%, driven by high interest rates, active merger and acquisition activity, and favorable regulatory conditions [1] - The average return for these banks was 45.51%, significantly outperforming the Magnificent Seven tech stocks, which averaged only 22.74% [2] - However, there are emerging concerns for 2026, including regulatory challenges, softening loan demand, and peak margins, indicating potential risks for bank stocks [2] Bank Performance Analysis - Bank of America (BAC): - Year-to-date performance is down 4.08%, with a growth of 8% in its loan portfolio in Q4 2025, but consumer lending remains weak [7] - Rising loan delinquencies and concerns over commercial loan candidates could negatively impact BAC's stock performance [7][8] - PNC Financial Services: - Year-to-date performance is up 6.84%, recognized as a well-managed regional bank with a dividend yield of 3.1% [9] - However, analysts express caution regarding PNC's commercial loan exposure and declining total loan yield from 5.76% to 5.60% [10][11] - The common equity tier 1 (CET1) ratio fell to 10.6%, indicating potential capital adequacy concerns [11] - Wells Fargo (WFC): - Year-to-date performance is down 2.75%, with shares trading at $90 [14] - The bank faces scrutiny over stock buyback programs, which could be impacted by regulatory changes under the Trump administration [15][16] - WFC's Q4 2025 earnings report showed revenues of $21.3 billion, slightly below analyst expectations, leading to a 4.5% drop in shares [18]