In recent discussions surrounding the best stocks in the market, attention has turned to PNC Financial Services Group and Fifth Third Bancorp, both of which are experiencing notable momentum while hovering just below record prices. Experts Josh Brown and Sean Russo from Ritholtz Wealth Management highlight the favorable position of these regional banks as they look ahead to 2026 with optimism.
Bill Demchak, now Chairman and CEO of PNC, previously spent 15 years at JPMorgan before transitioning to PNC in 2002. Under his leadership, PNC has become a standout in the regional banking sector, earning him the nickname “Jamie Jr.” for his direct approach and effective leadership—a title that seems to please shareholders more than it does him. PNC has recently reported robust earnings, showcasing record revenues and a significant $4 billion acquisition of FirstBank, which will greatly enhance its branch presence in Colorado and introduce operations in Arizona. This merger is anticipated to close in early 2026, further solidifying PNC’s ambitions to expand its footprint in strategically advantageous metro areas.
Meanwhile, Fifth Third Bancorp is also gaining traction following its merger with Comerica, a game-changing deal valued at $10.9 billion. This strategic move is expected to position Fifth Third as the ninth-largest bank in the United States, with a total of $288 billion in assets. The merger allows Fifth Third to penetrate 17 of the most rapidly growing metropolitan areas in the country. The bank’s aggressive expansion strategy is underscored by plans to establish 150 new branches in Texas by 2029 and the recent opening of its 200th branch in Florida.
On the data front, analyst expectations remain high, with the S&P 500’s profit margins forecasted to reach a record of 14.42% in 2026. Earnings are projected to grow by 14.9% year-over-year, supported by a healthy economic backdrop, anticipated rate cuts, and an uptick in capital markets activity. These factors position the banking sector favorably, especially for regional banks like PNC and Fifth Third, which have become attractive investments.
In terms of risk management for both stocks, Wall Street analysts have raised their targets for PNC following its positive earnings report and the approval to proceed with the FirstBank merger. The stock has recently crossed above previous highs, setting the stage for further gains. Recommended support levels are around $200 for short-term traders, while longer-term investors may look at the $175 to $180 range as a sturdy support area.
As for Fifth Third, the strategy surrounding the Comerica acquisition is pivotal. The anticipated closings in March is likely to stir investor confidence, and as synergies from the deal start to materialize, Fifth Third’s stock could potentially see a trajectory toward $50 and even $60, barring any unforeseen market disruptions.
With both PNC and Fifth Third positioned for growth and expansion, they are emerging as solid candidates for investors looking towards a promising forecast for the banking sector in the coming years.
