Ten Best Bank Stocks to Invest in for 2025
As the 2025 investment landscape shapes up, analysts are optimistic about the potential for significant gains in the banking sector. With predictions of solid economic growth and favorable regulatory conditions, banks could witness impressive loan growth. Moreover, a rebound in mergers and acquisitions may enhance investment banks’ fee revenue. Amid this backdrop, it is vital for investors to carefully select bank stocks. Here’s a rundown of ten bank stocks that analysts recommend as excellent buys for 2025, according to guidance from CFRA.
1. JPMorgan Chase & Co. (Ticker: JPM) – Potential Upside: 29.6%
JPMorgan Chase stands as a formidable player in global financial services, boasting nearly $4 trillion in assets. Analyst Kenneth Leon notes that the bank’s performance will be closely tied to the strength of the U.S. economy, accounting for 75% to 80% of its revenue. Notably, JPMorgan is expanding its market share as midsize companies increasingly seek to transfer services to larger banks. The stock is rated as a "buy" by CFRA, with a price target of $310, compared to its closing price of $239.11 on March 19. ## 2. Bank of America Corp. (Ticker: BAC) – Potential Upside: 25.5%
A major player in commercial and investment banking, Bank of America is expected to benefit from investment banking activity spurred by pro-business policies from the Trump administration. Leon anticipates that the bank will outpace consensus estimates in net interest income (NII) and other investment banking income. CFRA rates BAC as a "buy," with a price target of $53, from a recent closing price of $42.21. ## 3. Wells Fargo & Co. (Ticker: WFC) – Potential Upside: 29.1%
Wells Fargo is a significant player in the U.S. banking market, and analyst Alexander Yokum expresses confidence in the bank’s ability to improve upon its 13.4% return on tangible common equity. With ongoing restructuring led by CEO Charles Scharf and growth in the credit card sector, Wells Fargo is well-positioned for growth. The stock is rated "buy" with a target price of $94, having closed at $72.76. ## 4. HSBC Holdings PLC (Ticker: HSBC) – Potential Upside: 17.2%
As one of the largest global financial services firms, HSBC has high exposure to Asia, which is promising based on long-term growth forecasts. Analyst Firdaus Ibrahim highlights that the decline in interest rates should bolster HSBC’s asset management and private banking revenues, contributing to overall revenue growth. CFRA has a "buy" rating and a price target of $69 for HSBC, which closed at $58.85. ## 5. Royal Bank of Canada (Ticker: RY) – Potential Upside: 26.1%
Dominating the Canadian banking sector, the Royal Bank of Canada is recognized for its strong return on equity, even during economic downturns. Yokum suggests that planned cost reductions at City National, a U.S. subsidiary, will bolster profitability. CFRA rates RY as a "buy" with a price target of $144, compared to its recent close at $114.22. ## 6. Citigroup Inc. (Ticker: C) – Potential Upside: 25.9%
Citigroup operates as a diversified global bank and has successfully implemented a turnaround strategy. With a focus on institutional banking growth and technology-driven services, Leon sees potential in Citigroup’s planned divestment of consumer banking in Mexico, which should streamline operations. The stock carries a "buy" rating with a price target of $90 and closed at $71.44. ## 7. PNC Financial Services Group Inc. (Ticker: PNC) – Potential Upside: 52.4%
PNC offers a range of banking services, and Yokum indicates the bank is positioned to increase its net interest margin significantly. Factors such as declining funding costs and accelerating loan growth are expected to support PNC’s earnings growth outlook. CFRA has a "strong buy" rating with a target price of $265, with PNC stock closing at $173.83. ## 8. NatWest Group PLC (Ticker: NWG) – Potential Upside: 5.6%
NatWest, a leading provider in the U.K., is undergoing a digital transformation aimed at enhancing profitability. Ibrahim mentions that the bank has improved its operational efficiency through cost-cutting measures and aims to continue this trend moving forward. While its growth potential is considered more conservative compared to others on this list, CFRA sees value in NatWest.
9. M&T Bank Corp. (Ticker: MTB) – Potential Upside: 46.8%
M&T Bank, known for its community banking services, has been improving its financial performance. Analysts expect M&T to capitalize on lending opportunities, given its strong regional presence and solid customer base. CFRA states a "buy" recommendation and a compelling target price for investors.
10. Fifth Third Bancorp (Ticker: FITB) – Potential Upside: 49.5%
Fifth Third Bancorp is highlighted for its cost discipline and revenue-generating capabilities. Analyst projections suggest that FIFTH will exceed market expectations for earnings growth, making it a strong candidate for investors. The stock has a strong buy rating with a promising upside.
In conclusion, as the banking sector anticipates substantial growth opportunities, these ten bank stocks are poised to attract favorable attention in 2025. For investors looking to navigate a potentially volatile environment, stock selection is paramount, and analysts suggest keeping a keen eye on these institutions.
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