10 of the Best Bank Stocks to Buy for 2025

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

As the financial landscape continues to evolve, bank stocks are once again garnering attention from investors. Analysts are optimistic about several banks heading into 2025, projecting significant growth opportunities driven by a favorable economic environment and a potential resurgence in mergers and acquisitions activity. With these factors in mind, here are ten bank stocks that analysts at CFRA recommend for investors looking to position themselves advantageously in the stock market.

Economic Landscape and Bank Performance

Entering 2025, many financial experts are confident that solid economic growth in the U.S. will pave the way for robust loan growth among banks. Additionally, a pro-business regulatory climate may contribute to enhanced fee revenues, particularly for investment banks. However, analysts caution about uncertainties regarding ongoing tariff policies and the potential for economic downturns, which could expose bank stocks to credit risks. This underscores the importance of prudent stock selection in the current market.

Top 10 Bank Stocks to Consider

1. JPMorgan Chase & Co. (JPM) – Analyst Kenneth Leon reports a 29.6% upside potential, primarily because of JPM’s significant domestic revenue base, making it well-positioned to benefit from a strong U.S. economy. CFRA maintains a "buy" rating with a target price of $310, against a recent close of $239.11. 2. Bank of America Corp. (BAC) – With a 25.5% upside potential, Bank of America stands out as a top player in investment banking. Leon believes the bank will exceed expectations in both net interest income and investment banking fees. The stock has a target of $53 versus a closing price of $42.21. 3. Wells Fargo & Co. (WFC) – Analysts project a 29.1% upside potential as Wells Fargo navigates through restructuring and expands its credit card business, with expectations of greater earnings prompted by lifting past regulatory restrictions. It has a target price of $94, closing at $72.76. 4. HSBC Holdings PLC (HSBC) – Known for its global presence, HSBC has a 17.2% upside potential and benefits from its strong foothold in Asia. Analyst Firdaus Ibrahim forecasts revenue growth through asset management and private banking as markets stabilize, setting a target price of $69 against a recent close of $58.85. 5. Royal Bank of Canada (RY) – Expected to provide 26.1% upside potential, RBC’s longstanding history of profitability, coupled with strategic synergies, positions it well for growth as economic pressures ease. A target price of $144 against a closing price of $114.22 has been set.

2. Citigroup Inc. (C) – With a 25.9% upside potential, Citi is viewed positively for its restructuring efforts in institutional banking. Analysts predict steady revenue growth, placing a target price of $90, closing at $71.44. 7. PNC Financial Services Group Inc. (PNC) – Analysts are particularly bullish on PNC, forecasting a phenomenal 52.4% upside potential as rising net interest margins and accelerating loan growth contribute to earnings. A target of $265 is expected, against the stock’s recent close of $173.83. 8. NatWest Group PLC (NWG) – This U.K.-based bank shows a modest 5.6% upside potential. Ibrahim believes that ongoing digital transformations will enhance profitability. However, the target price is lower at $10.50. 9. M&T Bank Corp. (MTB) – Anticipated to achieve 46.8% upside potential, M&T Bank has been praised for its strategic growth initiatives. A target price of $167 has been set against a closing price of $113.86. 10. Fifth Third Bancorp (FITB) – With an impressive 49.5% upside potential, this bank is experiencing robust growth, and analysts anticipate continued momentum, setting a target price of $47 against a recent close of $31.45. ## In Summary

Amidst uncertainties in the market, carefully selected bank stocks could provide substantial growth opportunities for investors in 2025. Analysts at CFRA have identified these ten banks as having significant upside potential, making them worthy of consideration for both short-term trading and long-term investing strategies. As always, potential investors should conduct their research or consult with financial professionals before making investment decisions.

For those interested in staying updated on market trends, the U.S. News Investing section provides insights and analysis to help navigate the complexities of the financial markets.

Stay informed and make educated investment choices as 2025 unfolds.

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