10 of the Best Bank Stocks to Buy for 2025

As the financial landscape evolves heading into 2025, analysts are identifying several bank stocks with substantial upside potential. According to recent analysis from CFRA, the economic growth and favorable regulatory environment could lead banks to experience robust loan growth, although potential credit risks loom if the U.S. economy faces a downturn. Investors are thus encouraged to select bank stocks wisely. Here, we present ten bank stocks that analysts recommend purchasing.

Strong Forecasts for Major Banks

1. JPMorgan Chase & Co. (JPM)

JPMorgan Chase, one of the largest global financial institutions, possesses nearly $4 trillion in assets. Analyst Kenneth Leon notes that around 75% to 80% of JPMorgan’s revenue comes from the U.S. market. As midsize companies increasingly shift to larger banks for loans and services, JPMorgan is projected to gain market share across various banking segments. CFRA has assigned a "buy" rating with a target price of $310, compared to its recent trading price of $239.11. ### 2. Bank of America Corp. (BAC)
Bank of America is a significant player in the U.S. commercial and investment banking sector. Leon suggests that the favorable business policies from the Trump administration may ignite a recovery in investment banking activities. He expects Bank of America to surpass market estimates for both net interest income (NII) and noninterest investment banking income in 2025. The stock has a "buy" rating and a price target of $53, positioned against its last close at $42.21. ### 3. Wells Fargo & Co. (WFC)
Wells Fargo remains a dominant force in the U.S. banking sector. Analyst Alexander Yokum anticipates improvements in the bank’s return on tangible common equity, which was reported at 13.4% in 2024. With CEO Charles Scharf’s effective vision and navigational capability through restructuring measures, Yokum notes that growth in the credit card sector could also contribute positively. The stock has a "buy" rating and a target price of $94, while it recently traded at $72.76. ### 4. HSBC Holdings PLC (HSBC)
As one of the world’s largest financial service providers, HSBC boasts over 40 million customers. Analyst Firdaus Ibrahim believes the bank’s strong position in Asia will be advantageous given the continent’s growth potential. HSBC’s strategic divestment from underperforming businesses has also freed up capital, which is expected to support profitability. A "buy" rating has been assigned, with a price target of $69 against a closing price of $58.85. ### 5. Royal Bank of Canada (RY)
The Royal Bank of Canada, the largest commercial bank in Canada, is anticipated to maintain a competitive return on equity. Yokum highlights the bank’s resilience during past economic recessions and expects that merger synergies will bolster growth. With a projected price target of $144, the stock is currently priced at $114.22 and holds a "buy" rating.

6. Citigroup Inc. (C)

Citigroup is a diversified financial services firm with a promising outlook for institutional banking growth. Leon praises the company’s successful turnaround strategies and its leading market position in technology and treasury services. With anticipated moderate revenue growth of 4.1% for 2025, Citigroup holds a "buy" rating and a target price of $90, relative to its close at $71.44. ### 7. PNC Financial Services Group Inc. (PNC)
PNC delivers asset management and institutional banking services, and Yokum notes an expected increase in net interest margin from 2.75% by the end of 2024 to nearly 3% by the end of 2025. Falling funding costs and increased loan growth are expected to favorably impact PNC. The stock currently has a "strong buy" rating and a target price of $265, recently closing at $173.83. ### 8. NatWest Group PLC (NWG)
NatWest is recognized for its corporate and retail banking services in the U.K. Ibrahim believes that ongoing digital transformation and effective balance sheet management will elevate NatWest’s profitability. With impressive operational efficiency improvements noted, the bank is on the path to continued success. The stock holds a price target of $10, having closed around $8.67. ### 9. M&T Bank Corp. (MTB)
M&T Bank, known for its strong regional presence, has displayed impressive financial performance. With a target price of $200 compared to its last close at $136.54, analysts expect significant growth driven by recent acquisitions and a growing customer base. M&T ranks well among U.S. banks for its customer service orientation.

10. Fifth Third Bancorp (FITB)

Fifth Third has demonstrated robust growth measures with plans for enhancing its digital services and expanding its retail footprint. Analysts see a target price of $44 for the bank, which recently traded at $29.49. Strong management strategies aimed at increasing efficiency and revenue positions Fifth Third for a promising future.

Conclusion

As we progress toward 2025, these bank stocks present significant investment opportunities. Each bank shows a well-structured strategy and positioning that could yield substantial returns. However, market fluctuation and economic uncertainties remind investors to proceed cautiously. Conducting thorough research and considering individual investment goals will be imperative for those looking to capitalize on these banking stocks.

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