10 Best Bank Stocks to Buy for 2025: Analyst Insights and Market Outlook
As we move into 2025, the banking sector presents intriguing opportunities for investors, driven by expectations of solid economic growth, a favorable regulatory environment, and potential rebounds in financial activity such as mergers and acquisitions. However, uncertainties like trade policies and federal workforce reductions continue to inject volatility into the market. Selecting the right bank stocks thus becomes crucial. According to financial research firm CFRA, several bank stocks stand out for their upside potential this year.
Market Context for Bank Stocks in 2025
Analysts entered 2025 optimistic about loan growth across banks due to the anticipated economic expansion and supportive regulatory policies. Investment banks were looking forward to revitalized fee revenues, supported by an expected rebound in mergers and acquisitions activity. Yet, challenges such as uncertainty surrounding trade tariffs under the Trump administration and ongoing federal layoffs have unsettled the markets. Further, potential credit risks loom if the U.S. economy slides into recession. Against this backdrop, CFRA’s stock picks focus on banks with robust fundamentals and promising growth strategies.
Top 10 Bank Stocks with Strong Upside Potential
Below are CFRA’s top 10 bank stocks to watch in 2025, listed with their respective upside potential as of March 19, 2025:
| Bank | Ticker | Upside Potential |
|---|---|---|
| JPMorgan Chase & Co. | JPM | 29.6% |
| Bank of America Corp. | BAC | 25.5% |
| Wells Fargo & Co. | WFC | 29.1% |
| HSBC Holdings PLC | HSBC | 17.2% |
| Royal Bank of Canada | RY | 26.1% |
| Citigroup Inc. | C | 25.9% |
| PNC Financial Services Group Inc. | PNC | 52.4% |
| NatWest Group PLC | NWG | 5.6% |
| M&T Bank Corp. | MTB | 46.8% |
| Fifth Third Bancorp | FITB | 49.5% |
Detailed Analyst Insights on Key Bank Stocks
JPMorgan Chase & Co. (JPM)
JPMorgan Chase stands as one of the world’s largest financial services companies, managing nearly $4 trillion in assets. Analyst Kenneth Leon notes that JPM’s 2025 performance will largely depend on the strength of the U.S. economy, as 75% to 80% of the firm’s revenue is domestically derived. The company is currently gaining market share across various banking segments and benefiting from midsize companies transitioning their banking services to larger institutions. CFRA holds a "buy" rating with a $310 price target, compared to its March 19 close at $239.11. Bank of America Corp. (BAC)
Bank of America is a dominant player in commercial banking, investment services, and wealth management. Its solid position in investment banking revenue, ranking third globally, complements expectations that pro-business policies will drive growth. Leon believes BAC will surpass consensus analyst estimates for net interest income and investment banking fees in 2025, with net interest income playing a pivotal role in revenue expansion. CFRA rates BAC as a "buy" with a $53 target, while its stock price closed at $42.21 as of March 19. Wells Fargo & Co. (WFC)
Wells Fargo’s lending focus remains primarily in the U.S. market. Analyst Alexander Yokum is optimistic about improvements beyond the bank’s 13.4% return on tangible common equity seen in 2024, crediting CEO Charles Scharf for effective restructuring and growth in credit card business performance. Notably, the lifting of Wells Fargo’s punitive asset cap restriction sometime in 2025 could further boost prospects. CFRA assigns a "buy" rating and a $94 price target, relative to its $72.76 close.
HSBC Holdings PLC (HSBC)
HSBC, with over 40 million customers worldwide, is especially well-positioned given its substantial exposure to Asia—a region analysts view with a bullish long-term growth outlook. Analyst Firdaus Ibrahim highlights HSBC’s asset management and private banking as strong revenue contributors amid declining interest rates. Recent divestments of underperforming units have helped free capital and enhance profitability forecasts. CFRA has set a "buy" rating with a $69 price target; the stock closed at $58.85. Royal Bank of Canada (RY)
As Canada’s largest commercial bank, Royal Bank of Canada’s performance includes its ownership of City National Bank in the U.S. Yokum praises RBC’s consistent industry-leading return on equity and resiliency through past economic downturns. Anticipated merger synergies, improving deposit costs, and City National’s efficiency programs are expected to boost earnings. CFRA rates RBC "buy" with a $144 target against a closing price of $114.22. Citigroup Inc. (C)
Citi remains a diversified global bank with strengths in institutional banking, technology platforms, and corporate treasury services. Leon highlights Citi’s effective turnaround strategy and plans to exit consumer banking operations in Mexico to streamline operations, reduce costs, and increase transparency. The company is forecasted to generate modest revenue growth of 4.1% in 2025. CFRA’s "buy" rating carries a $90 price target; the stock stood at $71.44. PNC Financial Services Group Inc. (PNC)
PNC offers comprehensive banking solutions, including asset management and corporate services. Yokum projects a rise in PNC’s net interest margin to near 3% by year-end, with expectations that consensus earnings estimates are undervalued. Benefits from reduced funding costs, favorable asset repricing, and accelerating loan growth frame PNC as a strong buy, with a CFRA $265 price target compared to a March 19 close of $173.83. NatWest Group PLC (NWG)
NatWest, a leading U.K. bank, is undergoing digital transformation, focusing on cost discipline and balance sheet strength. Ibrahim notes significant improvements in operational efficiency, with a steep drop in the cost-to-income ratio from 74% in 2020 to 53.4% in 2024, alongside conservative loan impairment losses. CFRA’s rating remains positive despite a comparatively modest upside potential of 5.6%.
Conclusion
While volatility remains a factor in the banking industry due to geopolitical and economic uncertainties, several banks demonstrate strong fundamentals, strategic initiatives, and growth potential attractive to investors. Prospective buyers should pay close attention to these bank stocks as they represent some of the best opportunities for potential gains in 2025. Disclaimer: Stock prices and analyst ratings referenced are as of March 19, 2025. Investors should conduct their own due diligence and consider market changes before making investment decisions.
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