10 of the Best Bank Stocks to Buy for 2025: Expert Picks and Insights
As we move further into 2025, investors seeking opportunities in the financial sector are looking closely at bank stocks. Despite some economic uncertainties, analysts are optimistic about the potential growth in the banking industry, driven by solid economic expansion and a favorable regulatory environment at the start of the year. Additionally, a possible resurgence in mergers and acquisitions activity may enhance fee revenue prospects for investment banks.
However, market jitters caused by tariff policy uncertainties and federal workforce reductions have introduced some risks, including credit challenges should the U.S. economy slip into recession. This complex outlook makes choosing the right bank stocks all the more important.
Below, we present a curated list of ten bank stocks considered among the best buys for 2025 by CFRA analysts, complete with their expected upside potential, strategic positioning, and analysis.
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JPMorgan Chase & Co. (JPM)
JPMorgan Chase stands as one of the world’s largest financial services companies, managing nearly $4 trillion in assets. According to Kenneth Leon, an analyst at CFRA, about 75% to 80% of JPMorgan’s revenue is generated domestically, tying its performance closely to the strength of the U.S. economy. The firm is gaining market share across various banking segments and could benefit from mid-sized companies increasingly choosing larger banks for their loans and services. CFRA assigns JPM a buy rating and a $310 price target, with shares trading at $239.11 as of March 19. 2. Bank of America Corp. (BAC)
Bank of America, a major player in commercial and investment banking as well as wealth management, is poised to capitalize on pro-business policies that may stimulate investment banking activity. Leon highlights the bank’s top-tier position in global investment banking fee revenue and expects it to surpass consensus estimates for net interest income and non-interest investment income in 2025. CFRA’s buy rating comes with a $53 price target, with BAC shares at $42.21. 3. Wells Fargo & Co. (WFC)
Wells Fargo focuses predominantly on the U.S. market and is anticipated to improve on its 13.4% return on tangible common equity from 2024. Analyst Alexander Yokum expresses confidence in CEO Charles Scharf’s restructuring initiatives, noting especially the growth in Wells Fargo’s credit card business. Additionally, the bank may see relief from its punitive asset cap restriction this year. CFRA assigns a buy rating and a $94 price target, with shares at $72.76. 4. HSBC Holdings PLC (HSBC)
HSBC’s significant exposure to Asia offers substantial growth opportunities, particularly given positive projections for Asia’s banking sector. Analyst Firdaus Ibrahim points to HSBC’s expansion in asset management and private banking fee income and notes that divesting underperforming units has strengthened the bank’s capital position. CFRA rates HSBC as a buy with a $69 price target; shares were priced at $58.85. 5. Royal Bank of Canada (RY)
As Canada’s largest commercial bank and parent to City National Bank in the U.S., Royal Bank of Canada has a robust history of strong return on equity and resilience through economic downturns. Yokum expects merger synergies and City National’s performance to support earnings growth alongside a reduction in deposit pricing pressures. The buy rating and $144 price target stand with shares at $114.22. 6. Citigroup Inc. (C)
Citigroup’s diversified global banking services, including strength in technology platforms and corporate treasury services, position it well for institutional banking growth. The bank’s planned exit from consumer banking in Mexico is expected to streamline operations and reduce costs. Leon projects modest revenue growth of 4.1% in 2025, with CFRA issuing a buy rating and a $90 price target. Shares closed at $71.44. 7. PNC Financial Services Group Inc. (PNC)
PNC is forecasted to improve its net interest margin significantly, raising it from 2.75% at the end of 2024 to approximately 3% by year-end. With falling funding costs, asset repricing, and accelerating loan growth, PNC is poised to exceed earnings expectations, earning a strong buy rating and a $265 price target from CFRA. Shares stood at $173.83. 8. NatWest Group PLC (NWG)
NatWest has made significant strides in operational efficiency through digital transformation and cost-cutting, reducing its cost-to-income ratio notably. With disciplined growth and active balance sheet management, NatWest is expected to increase profitability. Analysts note continued improvement in loan impairments as a positive sign. -
M&T Bank Corp. (MTB)
M&T Bank is noted for stable growth prospects, supported by a diversified loan portfolio and strong local market presence. It is expected to gain from improving economic conditions and potential rate environments, contributing to a projected upside of 46.8%. -
Fifth Third Bancorp (FITB)
Fifth Third Bancorp shows attractive prospects with solid fundamentals and loan growth potential benefiting from a favorable economic backdrop. The stock comes with an anticipated upside of 49.5%, making it an appealing option for investors focused on banking stocks.
Conclusion
While economic and regulatory uncertainties persist, these banks exhibit strong fundamentals, strategic initiatives, and growth prospects that may translate into considerable upside potential in 2025. Investors should carefully evaluate their portfolios to consider adding these bank stocks, which CFRA analysts have identified as promising buys.
As always, staying informed and consulting with financial advisors is prudent when making investment decisions in the dynamic banking sector.
[Disclosure: Stock prices and ratings are as of March 19, 2025. Investment positions and market conditions may change.]