The world’s most important central bank says the biggest US banks are in strong enough shape to withstand a potential economic slowdown. All 23 banks that the Federal Reserve subjects to its annual stress test passed the key assessment after the market closed on Wednesday. The Fed’s stress test, which resulted from the 2008 global financial crisis, puts banks in a severe recession scenario to ensure that each can continue to operate and lend normally, even in extraordinary economic conditions. Still, most banks still have a long way to go before their profits and share prices recover from the brief liquidity scare that surrounded the collapse of Silicon Valley Bank, Signature Bank and First Republic earlier this year. For example, the Invesco KBW Bank ETF is down more than 30% since the New Year, while PacWest Bancorp is down nearly 65% and Western Alliance Bancorp is down 39% year-to-date. However, the stress test helped lift shares of major banks, including Wells Fargo and JPMorgan Chase, on Thursday. Then on Friday, JPMorgan shares hit their highest level in more than a year. Against this backdrop, CNBC Pro screened the banks in the Invesco KBW Bank ETF to find those that could do well in the second half of the year using the following criteria: Every stock was in the KBW ETF. At least 55% of analysts rate the stock a buy. Analysts’ average price target implies at least a 10% upside for each stock. Shares of Goldman Sachs are down more than 6% since the start of the year. The firm is facing headwinds stemming from disagreements between Goldman partners and current CEO David Solomon, as well as large losses from its 2021 purchase of GreenSky. Still, 56% of analysts surveyed by FactSet who cover Goldman Sachs rate a buy, while its average price target implying roughly a 19% upside from current trading levels. GS YTD mountain Goldman Sachs shares are down more than 5% since January. Phoenix-based Western Alliance, meanwhile, is 58% below its 52-week high. Despite the fallout from the turmoil at regional banks that began in February, analysts are somewhat optimistic that Western Alliance has started to reverse the bearish tide in May after the company’s update showed a promising rise in deposits. Nearly 88% of analysts polled by FactSet who cover Western Alliance rate it a buy, with the average price target implying more than 49% upside. WAL YTD shares of mountain Western Alliance are down more than 38% this year. Shares of Wells Fargo rose nearly 3.5% in 2023 after rising 3.4% on Thursday following the Fed’s stress test. Analysts are bullish on the San Francisco-based lender, with 60% of respondents buying Wells Fargo, according to a FactSet survey. On average, their price targets, meanwhile, represent about a 14% upside from the stock’s current trading level. WFC YTD mountain Wells Fargo shares are up more than 3% so far in 2023.