1 Bank Stock for Long-Term Investors and 2 Facing Headwinds

1 Bank Stock for Long-Term Investors and 2 Facing Headwinds

Radek Strnad

Thu, February 12, 2026 at 1:39 PM GMT+9 4 min read

In this article:

•                                       StockStory Top Pick 
  

  CASH

  -3.00%

 QCRH  

 -0.88%  

 

 

 WAFD  

 -0.18%  

 

 

 WAFDP  

 -0.30%  

 

 

 ^GSPC  

 -0.00%  

Banks use their capital and expertise to help businesses grow while offering consumers essential financial products like mortgages and credit cards. Furthermore, economic conditions have supported loan growth and fee income, a trend that has enabled the banking industry to return 13.8% over the past six months. At the same time, the S&P 500 was up 7.7%.

Nevertheless, investors should tread carefully as many banks are cyclical due to their exposure to credit risk and regulatory changes. Taking that into account, here is one bank stock boasting a durable advantage and two we’re steering clear of.

Two Bank Stocks to Sell:

QCR Holdings (QCRH)

Market Cap: $1.53 billion

With roots dating back to 1993 and a name reflecting its original Quad Cities market, QCR Holdings (NASDAQGM:QCRH) operates four community banks across Iowa and Missouri, providing commercial, consumer banking, and trust services to businesses and individuals.

Why Does QCRH Fall Short?

3.7% annual revenue growth over the last two years was slower than its banking peers

Net interest income trends were unexciting over the last five years as its 8.9% annual growth was below the typical banking firm

Earnings growth over the last two years fell short of the peer group average as its EPS only increased by 5.8% annually

QCR Holdings’s stock price of $91.56 implies a valuation ratio of 1.2x forward P/B. If you’re considering QCRH for your portfolio, see our FREE research report to learn more.

WaFd Bank (WAFD)

Market Cap: $2.50 billion

Founded in 1917 and rebranded from Washington Federal in 2023, WaFd (NASDAQ:WAFD) is a bank holding company that provides lending, deposit services, and insurance through its Washington Federal Bank subsidiary across eight western states.

Why Do We Steer Clear of WAFD?

Annual net interest income growth of 6.9% over the last five years was below our standards for the banking sector

Net interest margin dropped by 48.8 basis points (100 basis points = 1 percentage point) over the last two years, implying the firm’s loan book profitability fell as competitors entered the market

Earnings per share fell by 8.9% annually over the last two years while its revenue grew, showing its incremental sales were much less profitable

WaFd Bank is trading at $33 per share, or 0.9x forward P/B. Read our free research report to see why you should think twice about including WAFD in your portfolio, it’s free.

One Bank Stock to Buy:

Pathward Financial (CASH)

Market Cap: $1.95 billion

Formerly known as Meta Financial until its 2022 rebranding, Pathward Financial (NASDAQ:CASH) provides banking-as-a-service solutions and commercial finance products, enabling partners to offer financial services like prepaid cards, payment processing, and lending options.

Story Continues  

Why Is CASH a Top Pick?

13.7% annual net interest income growth over the last five years surpassed the sector average as its loans resonated with borrowers

Differentiated product suite is reflected in its Strong performance of its loan book results in a High-yielding loan book and low cost of funds are reflected in its best-in-class net interest margin of 7.1%

Share repurchases have amplified shareholder returns as its annual earnings per share growth of 25% exceeded its revenue gains over the last five years

At $89.61 per share, Pathward Financial trades at 2.1x forward P/B. Is now the time to initiate a position? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

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