The Best Stocks in the Market

We first introduced Citizen Financial Group (CFG) around six months ago. Since then, things have really come into focus. In straightforward terms, they boast the highest revenue growth rate in their sector, along with a compelling narrative and appealing stock charts. I refer to this combination as the Holy Trinity—where sector strengths, company fundamentals, and stock performance align perfectly. This synergy excites me, which is why I recently added some shares to my own portfolio, as I noted in a previous report. Additionally, clients of Ritholtz Wealth Management have also been investing in this stock.

Now, let’s dive into the bigger picture, which often goes unnoticed by many analysts. We’ll also touch on technical aspects and risk management. The small regional banks are seeing a surge right now. A prime example is the State Street Regional Banking ETF (KRE), which shows a strong, consistent upward trend—exactly what we want to observe. The price trajectory moves almost flawlessly from the bottom left to the top right. Every low is met with a higher low, and every high is succeeded by an even higher high. In a landscape where many are anxious about rising interest rates and inflation, this positive performance in local banks provides a much-needed counter-narrative.

Local banks offer invaluable insights into the “real” economy. Unlike larger financial institutions that engage in trading and global transactions, regional banks thrive by lending to individuals and small enterprises. Their balance sheets typically include home equity lines of credit, auto loans, and various types of small business lending. When these local institutions are on the rise, it often signals that households are still borrowing, small businesses are still investing, and there is generally healthy demand for credit.

Among the regional players, Citizens Financial is a standout. It has seen a remarkable 21% increase since the last report and is performing notably better than the S&P 500, which returned 8%, and the financial sector, which saw a decline of 1%. Citizens Financial, based in Rhode Island, operates 1,000 branches across 14 states and has emerged as the top HELOC originator in the U.S. The bank also has a solid commercial segment catering to middle-market entities. Its new Private Bank & Wealth division, launched in 2023, has grown impressively, hiring 150 bankers previously associated with the now-defunct First Republic and gathering significant deposits and client assets.

What really distinguishes CFG is its exceptional revenue growth, leading the S&P 500 regional banks with an anticipated 35% EPS growth rate this year. In the first quarter of 2026, CFG showcased 47% year-over-year EPS growth, record fees from capital markets, and achieved its highest quarterly net income to date. Moreover, upcoming guidance suggests continued growth in fee income and operational efficiencies.

Now, regarding risk management—Henry Wadsworth Longfellow famously remarked that “there’s always rain in life.” This applies to stocks as well; they don’t consistently rise in a straight line. In our analysis, we’ll examine where shifts might occur. The stock has maintained a solid uptrend over the past year, climbing from lows around $45 in July 2025 and generally staying above the 50-day moving average. There was a brief dip in early 2026 when CFG dropped to about $57, but buyers returned quickly. Importantly, the 200-day trend line held steady, remaining unchallenged even amid broader market declines.

The stock recently surged to close at $69, with the $70 mark looming as the next significant challenge. The RSI suggests that we’re on the brink of expansion, but it’s crucial to recognize that this positive momentum arises from a solid base rather than a sudden spike. For traders, the 50-day moving average at $64 is a useful benchmark. If it dips below that level, there may be cause to reassess the situation. Personally, I wouldn’t rush into trading this; I’d prefer to hold it a bit longer. However, long-term investors can set their risk at around $57—an area that has demonstrated solid support in past pullbacks. As long as CFG stays above this level, the upward trend should remain intact.