10 of the Best Bank Stocks to Buy for 2025: Insights and Analyst Picks
As we delve into 2025, investors eyeing the banking sector find promising opportunities amid an evolving economic landscape. Despite recent market uncertainties, a number of bank stocks show considerable upside potential, driven by solid fundamentals, strategic transformations, and a supportive regulatory environment. According to CFRA analysts, selecting the right bank stocks will be crucial in navigating potential risks, including credit challenges if the U.S. economy heads toward a recession.
Below is a detailed roundup of 10 of the best bank stocks to consider for 2025, highlighting their strengths and growth prospects.
1. JPMorgan Chase & Co. (Ticker: JPM)
JPMorgan Chase stands as one of the world’s largest financial services firms, managing nearly $4 trillion in assets. With about 75% to 80% of its revenues generated domestically, JPMorgan’s performance closely tracks the U.S. economy. Analyst Kenneth Leon notes that the bank is gaining market share across various banking sectors, benefitting from midsize companies shifting loans and services to larger institutions. CFRA rates JPM stock as a "buy" with a price target of $310, compared to its closing price of $239.11 on March 19, 2025. —
2. Bank of America Corp. (Ticker: BAC)
Bank of America is a major player in U.S. commercial and investment banking as well as wealth management. The pro-business policies of the previous administration are expected to boost investment banking activity. Leon projects Bank of America will outperform consensus estimates for net interest income (NII) and investment banking revenue in 2025, making its organic revenue growth particularly promising. CFRA assigns a "buy" rating with a $53 price target, versus its closing value of $42.21 on March 19. —
3. Wells Fargo & Co. (Ticker: WFC)
One of the largest U.S. banks, Wells Fargo predominantly serves the domestic market. Analyst Alexander Yokum expresses confidence in the restructuring direction under CEO Charles Scharf. Investments in Wells Fargo’s credit card business have driven strong recent growth. Additionally, the long-standing punitive asset cap imposed on the bank may be lifted in 2025, potentially unlocking further value. CFRA recommends a "buy" rating with a $94 price target, while the stock closed at $72.76. —
4. HSBC Holdings PLC (Ticker: HSBC)
With over 40 million customers worldwide, HSBC is a global banking and financial services giant particularly exposed to fast-growing Asian markets. Analyst Firdaus Ibrahim views this exposure as strategically advantageous amid Asia’s robust banking growth. Moreover, as interest rates decline, increases in asset management and private banking fee income are expected to underpin revenue boosts. Divesting underperforming operations has also positioned HSBC for improved profitability. CFRA rates HSBC a "buy" with a $69 price target, above its $58.85 closing price.
5. Royal Bank of Canada (Ticker: RY)
As Canada’s largest commercial bank and owner of U.S.-based City National, Royal Bank of Canada is recognized for its historically strong return on equity. Yokum anticipates synergies from mergers and the ongoing cost-cutting programs at City National to improve earnings. Furthermore, easing deposit pricing pressures will aid profitability. CFRA endorses RBC with a "buy" rating and $144 price target; the stock last closed at $114.22. —
6. Citigroup Inc. (Ticker: C)
Citigroup remains a diversified global banking institution. According to Leon, Citi is well positioned for growth in institutional banking and has effectively executed its turnaround strategy. The bank leads in technology platforms and corporate treasury services, and its planned exit from consumer banking in Mexico is expected to cut costs and streamline operations. Leon projects modest revenue growth of 4.1% in 2025. CFRA’s "buy" rating comes with a $90 price target, compared to a $71.44 closing price.
7. PNC Financial Services Group Inc. (Ticker: PNC)
PNC is a prominent U.S. bank providing asset management alongside traditional and institutional banking services. Analyst Yokum expects PNC’s net interest margin to rise from 2.75% at the end of 2024 to nearly 3% by the close of 2025, with consensus earnings estimates seen as conservative. Reprice improvements, accelerating loan growth, and lower funding costs are poised to drive earnings beats. CFRA assigns a "strong buy" rating with a price target of $265, while the stock closed at $173.83. —
8. NatWest Group PLC (Ticker: NWG)
NatWest is a leading U.K. bank focused on corporate and retail banking. Analyst Firdaus Ibrahim highlights the bank’s successful digital transformation, disciplined growth, and efficiency improvements, such as reducing its cost-to-income ratio from 74% in 2020 to 53.4% in 2024. These moves bolster profitability prospects. While NatWest has faced credit challenges, strategic balance sheet management supports a positive outlook.
9. M&T Bank Corp. (Ticker: MTB)
M&T Bank is gaining attention due to its solid regional banking presence and strong operational metrics. With improving profitability and growth initiatives, especially in loan and deposit segments, M&T shows compelling valuation advantages. Market watchers expect the stock to realize significant upside in the coming months.
10. Fifth Third Bancorp (Ticker: FITB)
Fifth Third Bancorp is a Midwest-focused regional bank displaying robust earnings growth potential. With a strategic emphasis on efficiency and digital banking capabilities, the bank has positioned itself well for market challenges. CFRA highlights its strong upside potential supported by improving operating trends.
Market Considerations for 2025
While these bank stocks display attractive investment theses, it is vital to consider the broader economic and political context. Uncertainties around U.S. tariff policies, federal employment trends, and potential recession risks could introduce volatility. However, continued economic growth projections and a less restrictive regulatory backdrop remain favorable for the banking sector.
Investors should conduct thorough research and consider individual risk tolerance when building bank stock portfolios. The above list, based on CFRA analysis as of March 19, 2025, serves as a starting point for identifying promising banking equities.
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This article is for informational purposes only and does not constitute financial advice. Always consult with a licensed financial advisor before making investment decisions.