(This is The Best Stocks in the Market , brought to you by Josh Brown and Sean Russo of Ritholtz Wealth Management.) Josh — Bill Demchak ran structured finance and credit at JPMorgan (JPM) and had spent 15 years at the bank before decamping for PNC Financial Services Group (PNC) in 2002. By 2013 he had become Chairman and CEO of PNC, and it’s been one of the best stories in the regional banking sector ever since. So there was very little overlap between Demchak’s time at JPM and Jamie Dimon’s tenure which began around the year 2000. However, Demchak’s been nicknamed “Jamie Jr” for his direct speaking style, reputation for leadership and attention to detail. I don’t know if he appreciates the nickname or not, but I bet his shareholders like it just fine. We’re going to revisit PNC and Fifth Third Bancorp (FITB) today because both are consolidating some pretty big moves but hanging high just below record prices. There’s reason to believe both names should have a good year in 2026 so we decided to bring them back to your attention. Sean’s got the usual mix of Best Stocks list statistics and some additional color on these two banks. I’ll be back with the technicals. Sector leaderboard As of Jan. 5, there are 192 names on The Best Stocks in the Market list. Top sector ranking: Top industries: Top 5 best stocks by relative strength: Sector spotlight: Banks Added: The PNC Financial Services Group, Inc. (PNC) & Fifth Third Bancorp (FITB) Sean — Looking forward into 2026, analyst expectations have not slowed down. Consensus S & P 500 profit margins are expected to be 14.42%, which would be the highest margin we have ever seen since FactSet started tracking this metric in 2009. As it stands today, consensus estimates have the S & P 500 growing earnings by 14.9% year over year. In congruence with solid fundamentals, rates are expected to drop at least another 25 basis points, with other estimates showing 2-3 cuts in 2025. This current setup could be constructive for financials. Record high earnings and margins, a relatively healthy economic environment that could support loan growth, increased capital markets activity, and modest rate cuts to get the mortgage business going too. We discussed regional banks on Sept. 2 , noting the setup with lower rates, improving breadth, and low expectations for these smaller banks. We looked at PNC Financial Services Group, Inc. (PNC), which had just beat earnings on top and bottom lines, and guided higher for 2025. The stock is up 6% since then, now 6% below all time highs. PNC reported strong third quarter earnings hitting record revenue and announced a $4B acquisition of FirstBank, which is expected to close in early 2026. This acquisition triples its branch footprint in Colorado and establishes a presence in Arizona. During recent investor conferences, PNC reaffirmed its focus on targeting high-growth metro areas and achieving scale in 18 of the top 30 U.S. markets. Fifth Third Bancorp (FITB) is one we have not discussed yet, but the chart looks good: Similar to PNC, FITB is a diversified bank with a focus on middle-market to large businesses and professional customers. They operate a network of full service banking centers, including wealth management solutions, insurance, trust and estate, and investment banking services. FITB just made a big acquisition too, merging with Comerica, valued at $10.9B, which would create the 9th largest U.S. bank with $288B in assets, and expands Fifth Third’s presence into 17 of the fastest growing U.S. metro areas. The bank plans to continue its aggressive geographic expansion strategy with plans to build 150 new branches in Texas by 2029 and recently opened its 200th branch in Florida, driving deposit growth of 12% CAGR in expansion markets. (data via Quartr) Risk management: Josh — Wall Street analysts have been raising their targets for PNC on the back of its most recent report as well as the official approval they’ve been granted to complete the FirstBank merger. As you can see, the stock has recently broken above its January and September high in the 200-210 area after a year of consolidation. I believe this has laid the foundation for a renewed bull market in PNC shares. I want to zoom out and show you the longer-term consolidation that’s taken place here because a break above the old January 2022 highs would be even more momentous. That level is roughly $225-$230. I stripped out all the moving averages, volume bars and RSI stuff – I just want you to focus on the price… Now ask yourself: Do we believe in triple tops? No. No we do not. I think this one goes this year. May take awhile. You’re getting paid a 3 and a quarter percent dividend while you wait. As far as risk management, traders can use $200 as a line in the sand. I’d probably put my stop around $195 which also happens to be the rising 50-day. For investors I like a longer leash, I’d use the prior support area of $175 to $180 which held like a champ from September through Thanksgiving. Here’s Fifth Third, another super-regional with a recent breakout… This one’s cut and dry. They’re going to spend the first quarter of this year buttoning up to get this massive Comerica thing closed and reassure shareholders about the hundreds of millions of dollars they’ll save via synergies in 2027 (target is annually reduced expenses of $850 million!). The most recent estimate I’ve come across for the deal’s close is the end of March. Fifth Third is following the money, plowing into areas throughout Texas, Florida, etc where rich people and businesses are moving to. That’s probably why you’re looking at a share price that is rallying ahead of the deal close – the Street is voting Yes on their strategy. Once the Comerica acquisition closes, I think we’re looking at a stock trading north of $50 on its way to $60 barring any major exogenous market shock. DISCLOSURES: (None) All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, NBC UNIVERSAL, their parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL’S UNIQUE PERSONAL CIRCUMSTANCES. 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