10 of the Best Bank Stocks to Buy for 2025: Analysts Eye Strong Upside Potential Amid Market Uncertainties
As investors prepare for 2025, bank stocks are capturing significant attention amid expectations of solid economic growth and a relatively supportive regulatory environment. Many analysts believe these conditions could fuel impressive loan growth, while a potential rebound in mergers and acquisitions might help investment banks increase fee revenue. However, ongoing uncertainties—such as President Donald Trump’s tariff policies and aggressive federal layoffs—have created market volatility, raising concerns that some banks could face credit risks if the U.S. economy slips into a recession.
Given this complex backdrop, selecting the right bank stocks to invest in for 2025 is more critical than ever. Drawing on CFRA’s latest analysis released on March 20, 2025, here is a detailed look at 10 of the best bank stocks offering solid upside potential.
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JPMorgan Chase & Co. (JPM)
JPMorgan Chase stands as one of the world’s largest financial services firms, managing close to $4 trillion in assets. Analyst Kenneth Leon highlights that JPMorgan’s 2025 performance will closely follow the strength of the U.S. economy, as approximately 75%-80% of its revenue is domestic. The bank is gaining market share across various banking sectors, particularly benefiting from midsize companies shifting their loans and services to larger institutions. CFRA maintains a “buy” rating with a price target of $310, while the stock closed at $239.11 on March 19, 2025. 2. Bank of America Corp. (BAC)
Bank of America is a leading U.S. commercial and investment bank with a robust wealth management division. The bank is well-positioned to benefit from the Trump administration’s pro-business stance, which is expected to revive investment banking activity in 2025. Kenneth Leon projects Bank of America will surpass consensus estimates for net interest income (NII) and investment banking fee revenue. CFRA has assigned a “buy” rating with a $53 price target; the stock was trading at $42.21 as of March 19. 3. Wells Fargo & Co. (WFC)
Wells Fargo, one of the largest lenders chiefly operating in the U.S., is anticipated to improve its tangible common equity return beyond the 13.4% reported in 2024. Analyst Alexander Yokum expresses confidence in CEO Charles Scharf’s restructuring strategies and highlights the recent strong growth in Wells Fargo’s credit card business. Furthermore, the anticipated lifting of an asset cap restriction in 2025 could unlock additional growth potential. CFRA’s “buy” rating includes a $94 price target, with shares priced at $72.76 on March 19. 4. HSBC Holdings PLC (HSBC)
HSBC, among the world’s largest banking and financial services providers serving more than 40 million customers, benefits from significant exposure to Asia—a region expected to deliver robust banking growth. Analyst Firdaus Ibrahim indicates that as interest rates decline, HSBC’s revenue will be supported by strong asset management and private banking fee income. Divesting underperforming units has also freed capital, improving the bank’s profitability outlook. CFRA assigns a “buy” rating with a $69 price target; the stock closed at $58.85 on March 19. 5. Royal Bank of Canada (RY)
As Canada’s largest commercial bank and owner of U.S.-based City National, Royal Bank of Canada boasts a history of superior return on equity, even during economic downturns. Analyst Alexander Yokum highlights expected synergies from mergers and the strong performance of City National as key profit drivers. With less pressure on deposit pricing and ongoing cost-cutting efforts, RB’s earnings are forecast to rebound in 2025. CFRA’s “buy” rating comes with a $144 price target; shares traded at $114.22 on March 19. 6. Citigroup Inc. (C)
Citigroup is a diversified global bank focusing heavily on institutional banking growth. Kenneth Leon notes Citi’s leadership in technology platforms and corporate treasury services. The bank’s planned exit from consumer banking in Mexico during 2025 is expected to streamline operations and reduce costs. Leon expects a modest 4.1% revenue growth in 2025, with CFRA recommending a “buy” rating and a $90 price target; stock closed at $71.44 on March 19. 7. PNC Financial Services Group Inc. (PNC)
PNC offers comprehensive banking services, including asset management and corporate banking. Analyst Alexander Yokum projects net interest margin expansion from 2.75% in late 2024 to nearly 3% by end of 2025. Falling funding costs, asset repricing, and accelerating loan growth are expected to help PNC exceed earnings expectations. CFRA rates PNC as a “strong buy” with an ambitious $265 price target; shares were trading at $173.83 as of March 19. 8. NatWest Group PLC (NWG)
NatWest is a key U.K. retail and corporate bank making strides in digital transformation and operational efficiency. Analyst Firdaus Ibrahim points to disciplined growth and active balance sheet management as drivers for improving profitability. NatWest improved its cost-to-income ratio significantly, falling from 74% in 2020 to 53.4% in 2024. This progress poises NatWest well for continued growth despite some loan impairment concerns. -
M&T Bank Corp. (MTB)
M&T Bank is recognized for its strong regional banking presence and disciplined credit culture. Though not as prominently covered in detail as others, M&T shows a considerable upside forecast of 46.8%, highlighting significant growth potential for 2025. 10. Fifth Third Bancorp (FITB)
Fifth Third Bancorp, a diversified regional bank, carries an upside potential of 49.5% according to CFRA. This stock remains attractive due to ongoing improvements in asset quality and strategic loan growth, positioning it well for 2025. Investors looking for banking sector opportunities in 2025 should carefully evaluate these key players, each featuring unique strengths from institutional banking and technology leadership to improving cost structures and geographic diversity. While potential risks remain given economic uncertainties, these top bank stocks identified by CFRA offer promising upside potential for investors aiming to capitalize on the evolving financial landscape.
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*All stock prices and ratings are as of market close on March 19, 2025. Always consult with a financial advisor before making investment decisions.