10 of the Best Bank Stocks to Buy for 2025: Analysts Highlight Strong Investment Opportunities

By Wayne Duggan | Edited by Jordan Schultz | March 20, 2025

As the financial landscape evolves heading into 2025, analysts are optimistic about the potential for bank stocks to deliver strong returns for investors. With the combination of solid economic growth and a favorable regulatory environment, many banks are poised to experience impressive loan growth in the upcoming year. Furthermore, a rebound in mergers and acquisitions may bolster fee revenue for investment banks.

While recent uncertainty surrounding political decisions, including trade tariffs and federal layoffs, has created volatility in the market, the selection of bank stocks could be critical. According to analysts from CFRA, here are ten bank stocks that are being recommended for investment today, each with significant upside potential.

Top Bank Stocks for 2025

1. JPMorgan Chase & Co. (JPM)

   • Upside Potential: 29.6%
   • With approximately $4 trillion in assets under management, JPMorgan Chase remains a giant in the global financial services industry. CFRA analyst Kenneth Leon notes that the bank’s performance in 2025 will largely depend on the strength of the U.S. economy, as a substantial portion of its revenue is domestic. The firm has a "buy" rating and has set a price target of $310 for JPM shares, which were valued at $239.11 on March 19. 2. Bank of America Corp. (BAC)
   • Upside Potential: 25.5%
   • As one of the largest commercial banks in the United States, Bank of America stands to benefit from the Trump administration’s pro-business policies, which may enhance investment banking activities. Leon expects the bank to exceed analyst estimates for net interest income, a crucial contributor to growth. The current price target for BAC is set at $53, with shares closing at $42.21 on March 19. 3. Wells Fargo & Co. (WFC)
   • Upside Potential: 29.1%
   • Wells Fargo, a major U.S. banking institution, is focused on improving its return on equity and restructuring initiatives under CEO Charles Scharf. Analyst Alexander Yokum believes that the bank’s performance will improve significantly, especially if restrictions on its asset cap are lifted. The bank has a "buy" rating and a price target of $94, closing at $72.76 on March 19. 4. HSBC Holdings PLC (HSBC)
   • Upside Potential: 17.2%
   • As a leading global banking and financial services provider with substantial exposure to Asia, HSBC is well-positioned for long-term growth. Analyst Firdaus Ibrahim notes the bank’s positive outlook despite declining interest rates, which benefit their asset management and private banking segments. The price target for HSBC is $69, with shares valued at $58.85 on March 19. 5. Royal Bank of Canada (RY)
   • Upside Potential: 26.1%
   • The largest commercial bank in Canada, Royal Bank of Canada continues to demonstrate robust performance and resilience through economic cycles. With anticipated improvements in merger-related synergies and the City National division, Yokum projects an enhanced return on equity. RY shares closed at $114.22, with a price target of $144. 6. Citigroup Inc. (C)
   • Upside Potential: 25.9%
   • Citigroup is undergoing a successful turnaround strategy, particularly focusing on institutional banking growth. Leon praises the bank’s market leadership in technology services and expects modest revenue growth as it streamlines through the exit of consumer banking in Mexico. The stock’s price target is set at $90, with shares trading at $71.44 on March 19. 7. PNC Financial Services Group Inc. (PNC)
   • Upside Potential: 52.4%
   • PNC boasts significant opportunities to drive growth in net interest income and net interest margins. With favorable conditions expected in the coming year, Yokum encourages a "strong buy" rating for PNC, with a remarkable price target of $265 compared to its closing price of $173.83. 8. NatWest Group PLC (NWG)
   • Upside Potential: 5.6%
   • A major player in the U.K. banking sector, NatWest is focusing on digital transformation and disciplined growth strategies. Ibrahim sees potential for the bank to enhance its balance sheet through prudent fiscal management, though it has a comparatively lower upside from its current valuation.

2. M&T Bank Corp. (MTB)

   • Upside Potential: 46.8%
   • M&T Bank has consistently shown resilience in its business model and is expected to perform well as economic conditions improve. Analysts like Yokum point to operational efficiencies and strong asset management as key drivers for growth in 2025. 10. Fifth Third Bancorp (FITB)
   • Upside Potential: 49.5%
   • Fifth Third Bancorp stands out with its robust growth strategy in the competitive banking landscape. Analysts anticipate the bank will leverage its strengths to outperform current market expectations in the coming periods.

Conclusion

As investors consider their options for 2025, focusing on the right bank stocks could yield significant returns. While interpreting the landscape of potential economic uncertainties, banks like JPMorgan, Bank of America, and PNC present compelling investment opportunities, backed by thorough analyses and strategic positioning within the financial sector.

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