Regional bank stocks are closing the gap with bigger competitors. Strategies for investing in the sector.
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Aug 26 2025
0mins
Source: MarketWatch
Recent Performance of Bank Stocks: Regional-bank stocks have recently outperformed larger bank stocks, marking a shift from earlier trends this year.
Investment Recommendations: KBW analyst Chris McGratty suggests that universal banks may be a better investment choice, while still acknowledging potential opportunities in smaller regional banks.
Revenue Sources for Regional Banks: Regional banks rely more heavily on their loan businesses for revenue, which could benefit from anticipated lower interest rates and improved lending conditions.
Future Outlook: The prospect of favorable economic conditions may enhance the profitability of regional banks, making them an attractive option for investors.
Analyst Views on FITB
Wall Street analysts forecast FITB stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for FITB is 54.54 USD with a low forecast of 50.00 USD and a high forecast of 61.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
14 Analyst Rating
11 Buy
3 Hold
0 Sell
Strong Buy
Current: 50.890
Low
50.00
Averages
54.54
High
61.00
Current: 50.890
Low
50.00
Averages
54.54
High
61.00
About FITB
Fifth Third Bancorp is a diversified financial services company and is the indirect holding company of Fifth Third Bank, National Association (the Bank). Its Commercial Banking segment offers credit intermediation, cash management and financial services to large and middle-market businesses and government and professional customers. Its Consumer and Small Business Banking segment provides a full range of deposit and loan products to individuals and small businesses through a network of full-service banking centers and relationships with indirect and correspondent loan originators, in addition to providing products designed to meet the specific needs of small businesses, including cash management services. Its Wealth and Asset Management segment provides a full range of wealth management solutions for individuals, companies and not-for-profit organizations, including wealth planning, investment management, banking, insurance, trust and estate services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
