10 of the Best Bank Stocks to Buy for 2025

Investing Insights into the Banking Sector

As the calendar turns to 2025, analysts are cautiously optimistic about the prospects for U.S. banks. Factors such as solid economic growth and a favorable regulatory environment are anticipated to facilitate impressive loan growth, with expectations for a potential resurgence in the mergers and acquisitions landscape that could enhance investment banks’ fee revenues. However, concerns regarding geopolitical factors, such as President Donald Trump’s tariff policies, and economic uncertainties may pose challenges. Therefore, selecting bank stocks wisely will be critical this year. CFRA has identified ten bank stocks that offer substantial upside potential.

Key Bank Stocks to Watch

According to CFRA’s analysis, here are the ten bank stocks that investors should consider for 2025, highlighting each bank’s potential upside based on recent performance:

1. JPMorgan Chase & Co. (JPM) – Upside: 29.6%

   • As one of the largest global financial institutions, JPMorgan Chase’s performance is closely linked to the U.S. economy. With nearly $4 trillion in assets, the bank is gaining market share and benefits from midsize companies transitioning to larger banks. CFRA rates JPM a "buy" with a price target of $310. 2. Bank of America Corp. (BAC) – Upside: 25.5%
   • This major player in commercial banking could see a rebound in investment activity driven by favorable pro-business policies. Analyst Kenneth Leon predicts that Bank of America will exceed consensus expectations for net interest income in 2025, leading to a "buy" rating and a price target of $53. 3. Wells Fargo & Co. (WFC) – Upside: 29.1%
   • Under CEO Charles Scharf’s leadership, Wells Fargo is navigating a successful restructuring strategy. The bank’s notable improvements in credit card business lend confidence to analysts, leading to a "buy" rating and a price target of $94. 4. HSBC Holdings PLC (HSBC) – Upside: 17.2%
   • With significant exposure to the rapidly growing Asian markets, HSBC is viewed as an attractive investment. Analyst Firdaus Ibrahim emphasizes the bank’s potential for revenue growth through asset management and divestment strategies. CFRA rates it a "buy" with a projected price of $69. 5. Royal Bank of Canada (RY) – Upside: 26.1%
   • Canada’s largest bank, which also operates in the U.S. via City National Bank, is noted for its strong return on equity. Analyst Yokum anticipates fewer deposit pricing pressures in 2025, reaffirming a "buy" recommendation with a target price of $144. 6. Citigroup Inc. (C) – Upside: 25.9%
   • Citigroup’s turnaround strategy and focus on institutional banking place it in a strong competitive position. The bank plans to streamline operations further by exiting consumer banking in Mexico, supporting a revenue growth projection of 4.1%. CFRA assigns a "buy" rating with a price target of $90. 7. PNC Financial Services Group Inc. (PNC) – Upside: 52.4%
   • PNC is expected to improve its net interest margins significantly by the end of 2025. With optimistic projections for net interest income and loan growth, the bank has received a "strong buy" rating and a target price of $265. 8. NatWest Group PLC (NWG) – Upside: 5.6%
   • As a leading U.K. bank, NatWest is undergoing a digital transformation aimed at disciplined growth. While its upside potential is relatively modest, it remains a solid choice in the banking sector.

2. M&T Bank Corp. (MTB) – Upside: 46.8%

   • M&T’s growth strategies in asset management and traditional banking positions it well for substantial upside in 2025. Analysts reflect strong optimism regarding its future performance.

3. Fifth Third Bancorp (FITB) – Upside: 49.5%

   • Fifth Third is well-positioned for growth, primarily focusing on expanding its reach in various financial products. Investors may find value in its diversified approach.

Conclusion

As the banking landscape evolves in 2025, investors are encouraged to conduct thorough research and consider these top bank stocks as potential investments. Market analysts believe that several of these banks possess strong fundamentals, making them excellent candidates for future growth. With the right selections, investors can capitalize on what could be a fruitful year in the banking sector.

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