10 of the Best Bank Stocks to Buy for 2025
As investors look ahead to 2025, many analysts are optimistic about the banking sector’s growth potential. With a combination of solid economic prospects and a potentially supportive regulatory environment, banks are expected to generate robust loan growth and increased fee revenue, particularly if mergers and acquisitions rebound. Despite geopolitical uncertainties and market jitters, smart bank stock selections could offer significant upside. According to CFRA analysts, here are 10 of the best bank stocks to consider for 2025, based on their strong upside potentials and strategic positioning.
1. JPMorgan Chase & Co. (Ticker: JPM)
Upside Potential: 29.6%
JPMorgan Chase is the largest global financial services firm with nearly $4 trillion in assets under management. Analyst Kenneth Leon highlights that around 75%-80% of JPMorgan’s revenue is from the U.S., making its performance closely tied to the national economy’s health. The bank is gaining market share in numerous banking segments, and the growing movement of midsize firms shifting loans to larger banks may further benefit JPMorgan. CFRA maintains a "buy" rating with a $310 price target, positioning the stock as a strong choice after closing at $239.11 on March 19. —
2. Bank of America Corp. (Ticker: BAC)
Upside Potential: 25.5%
Bank of America ranks among the largest U.S. commercial and investment banks and is a key player in wealth management. Leon expects that pro-business policies could stimulate investment banking activity, driving revenue growth. Bank of America ranks third globally for investment banking fee revenue. Its net interest income (NII) is a significant growth driver, and the bank is anticipated to outperform consensus estimates. The stock closed at $42.21 on March 19, with CFRA’s "buy" rating and a $53 target.
3. Wells Fargo & Co. (Ticker: WFC)
Upside Potential: 29.1%
Wells Fargo is one of the largest banks in the U.S., heavily focused on domestic lending. Analyst Alexander Yokum is confident in Wells Fargo’s leadership under CEO Charles Scharf and the ongoing restructuring efforts. Investments in the credit card business have yielded strong growth, and there is optimism that the bank’s restrictive asset cap could be lifted in 2025, further unlocking potential. CFRA’s "buy" rating comes with a $94 price target. Wells Fargo stock closed at $72.76 on March 19. —
4. HSBC Holdings PLC (Ticker: HSBC)
Upside Potential: 17.2%
HSBC is a global banking giant with a large footprint in Asia, servicing over 40 million customers. Analyst Firdaus Ibrahim notes the bank’s exposure to Asia positions it well for long-term growth amid a bullish outlook for the region. As interest rates fall, HSBC’s asset management and private banking fees are expected to bolster revenue growth. Divesting underperforming units has also strengthened the company’s profitability outlook. CFRA assigns a "buy" rating with a price target of $69. HSBC closed at $58.85 on March 19. —
5. Royal Bank of Canada (Ticker: RY)
Upside Potential: 26.1%
Canada’s largest commercial bank, Royal Bank of Canada, also owns City National Bank in the U.S. Yokum praises RBC’s strong historic return on equity and resilience during economic downturns. Synergies from recent mergers, along with City National’s robust performance and cost controls, underpin earnings growth expectations. Deposit pricing pressures are projected to ease in 2025. The stock closed at $114.22 with a CFRA "buy" rating and a $144 target.
6. Citigroup Inc. (Ticker: C)
Upside Potential: 25.9%
Citigroup is a diversified global bank executing a successfully turnaround strategy. Leon points to its leadership in technology platforms and corporate treasury services, with an anticipated exit from consumer banking in Mexico helping streamline operations. Citi’s emphasis on transparency and consistency is expected to create shareholder value over time. Modest revenue growth of about 4.1% is projected for 2025. The stock closed at $71.44 with CFRA’s "buy" rating and a $90 price target.
7. PNC Financial Services Group Inc. (Ticker: PNC)
Upside Potential: 52.4%
PNC is a major U.S. bank offering a mix of asset management, traditional banking, and institutional services. Yokum forecasts PNC’s net interest margin could rise from 2.75% to near 3% by end-2025. Market consensus underestimates the bank’s net interest income growth, suggesting PNC could beat earnings expectations. Tailwinds include declining funding costs, asset repricing, and accelerating loan growth. CFRA issues a "strong buy" rating with a $265 price target. The stock closed at $173.83 on March 19. —
8. NatWest Group PLC (Ticker: NWG)
Upside Potential: 5.6%
NatWest is a comprehensive corporate and retail bank in the U.K. Analyst Firdaus Ibrahim highlights the bank’s digital transformation and disciplined cost management, which has improved profitability. Significant strides in operational efficiency are evident in the drop of the cost-to-income ratio from 74% in 2020 to 53.4% in 2024. NatWest’s conservative balance sheet and low loan impairments enhance its financial stability and appeal.
9. M&T Bank Corp. (Ticker: MTB)
Upside Potential: 46.8%
M&T Bank is a well-regarded regional bank with a strong community focus. Analysts appreciate its consistent performance and strategies aimed at improving operational efficiency and loan growth. Rising interest rates and a favorable macroeconomic environment may further enhance M&T’s net interest income, supporting its stock appreciation potential.
10. Fifth Third Bancorp (Ticker: FITB)
Upside Potential: 49.5%
Fifth Third Bancorp is a diversified regional bank with a comprehensive range of banking and financial services. The bank benefits from strong loan growth prospects and a solid capital structure. Analysts expect earnings momentum to continue in 2025, supported by a rising interest rate environment and operational improvements.
Key Takeaways for Investors
While the banking sector faces some challenges including geopolitical uncertainty and potential recession risks, select banks remain well-positioned to deliver strong returns in 2025. Factors such as domestic economic growth, mergers and acquisitions activity, regulatory developments, and operational efficiencies are likely to drive performance.
Investors looking to capitalize on the banking sector should consider these ten stocks, each offering compelling upside potential backed by strategic strengths and favorable market trends.
Data as of market close on March 19, 2025.
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