The latest Federal Reserve stress test results have put large US banks back in the spotlight, as all 32 biggest institutions cleared a severe recession scenario and several moved quickly to lift dividends and announce new buybacks. For investors watching US large cap bank stocks, this combination of confirmed capital strength and higher planned cash returns can influence how risk and reward compare across the sector. This article walks through three stocks from the screener that appear positively exposed to the news, helping you assess whether they merit a closer look or a spot on your watchlist.

Hancock Whitney (HWC)

Overview: Hancock Whitney is a Gulf Coast focused bank that offers a full suite of traditional and online services, from checking accounts and mortgages to commercial lending, wealth management, and brokerage solutions for individuals, small businesses, and larger corporate clients.

Operations: Hancock Whitney generates all of its approximately US$1.4b in annual revenue from banking operations in the United States.

Market Cap: US$5.9b

Hancock Whitney stands out in the large cap bank group because it combines traditional relationship banking with a growing wealth and trust platform, supported by what management describes as strong capital ratios and a history of consistent dividends. The company is focusing on hiring in higher growth markets and integrating the Sabal Trust acquisition to build fee income, while also using buybacks at times to manage its share count. At the same time, investors need to weigh credit and integration risks, plus a P/E that sits above many peers, against analyst forecasts for double digit earnings growth and the potential benefit of a friendlier regulatory backdrop for US banks after the latest Fed stress tests.

Hancock Whitney’s combination of relationship banking, wealth growth plans and a higher-than-peer P/E suggests the market may be pricing in more than investors realise. Put the story in context with analyst forecasts for Hancock Whitney

Old National Bancorp (ONB)

Overview: Old National Bancorp is a regional banking group headquartered in Evansville, Indiana, offering everyday banking, lending, and digital services for consumers and businesses, alongside wealth management, trust, and capital markets solutions.

Operations: Old National Bancorp generates about US$2.5b in annual revenue from community banking in the United States.

Market Cap: US$9.8b

Old National Bancorp gives you exposure to a large, regulated US bank that combines traditional community banking with growing fee businesses in wealth, mortgage, and capital markets. It is supported by capital levels that management describes as giving room for buybacks and dividends. The company has been recognized for financial strength and community impact, while analysts point to strong recent earnings and a valuation that screens below some fair value estimates. On the other hand, relatively low current and forecast ROE, commercial real estate exposure, and a concentrated Midwest footprint mean investors need to think carefully about risk, growth limits, and how much to pay for that capital return story and Fed stress test tailwind.

Old National Bancorp’s valuation story appears out of sync with its capital strength and community banking footprint. This raises a simple question: what is the market missing right now about the analysis report for Old National Bancorp?

Huntington Bancshares (HBAN)

Overview: Huntington Bancshares is a Columbus based regional bank that provides a broad mix of consumer, small business, and corporate banking services, including deposits, lending, mortgage banking, payments, wealth management, and insurance, delivered through branches, ATMs, digital channels, and call centers across its US footprint.

Operations: Huntington Bancshares generates about US$8.3b in annual revenue, primarily from Consumer & Regional Banking at US$5.7b and Commercial Banking at US$3.0b, partly offset by a loss in Treasury / Other, all from customers in the United States.

Market Cap: US$35.6b

Huntington Bancshares gives you exposure to a large regional bank that sits squarely in the Fed’s stress testing framework. The company is also leaning into growth through acquisitions in Texas and other higher population markets and through heavy investment in digital payments and wealth. The stock combines a 3.53% dividend yield, management’s focus on buybacks and efficiency, and revenue that analysts expect to grow faster than the wider US market. However, it also comes with trade offs such as a higher than peer P/E, recent shareholder dilution, insider selling, and expansion and regulatory risks that investors need to weigh carefully against the Fed stress test tailwind and management’s capital return ambitions.

Huntington Bancshares’ capital return plans, higher than peer P/E, and stress test exposure hint at a story the market may not fully be pricing. Put those pieces together with the analyst forecasts for Huntington Bancshares

The three US large cap bank stocks in this article are just the starting point, as the full US Large-Cap Bank Stocks screener has surfaced 18 more companies with equally compelling narratives through the US Large-Cap Bank Stocks screener. Use Simply Wall St to identify and analyze the specific catalysts, financial health profiles, dividend patterns, and valuation signals that matter most to you, so you can focus on the opportunities in this space that align most closely with your views.

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If Old National Bancorp or any of these companies sound like a great opportunity, register for FREE with Simply Wall St and add your companies to a Watchlist to monitor the share price against the fair value the ideal entry point. Once you've made your move, manage your holdings with our Portfolio Command Center that filters out the noise to deliver only the most critical, actionable updates. Throughout your journey, our Community allows you to filter the best ideas from thousands of investor perspectives. By uncovering hidden catalysts and risks early, you'll accelerate your decision-making and stay one step ahead of the market.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.