10 Best Bank Stocks to Buy for 2025

Investing Insights from U.S. News

As financial analysts look ahead to the next year, several bank stocks are being highlighted as strong buy candidates for 2025. With the potential for economic growth and a regulatory environment favorable to financial institutions, these undervalued stocks may provide significant upside for investors.

Positive Outlook Amid Economic Growth

Analysts believe that a solid economic performance and favorable conditions could lead banks to experience substantial loan growth. In addition, there are hopes for a resurgence in mergers and acquisitions, which would boost fee revenues for investment banks. However, some market volatility is anticipated due to uncertainties in government policies and potential credit risks, particularly if the economy were to tip into a recession. In this environment, careful bank stock selection is crucial.

Top Bank Stocks According to CFRA

According to a recent analysis by CFRA, the following ten bank stocks stand out for their potential in 2025:

1. JPMorgan Chase & Co. (JPM)

   • Upside Potential: 29.6%
   • Details: As one of the largest global financial services firms, JPMorgan has a vast asset base. Analysts predict its growth will be closely tied to the U.S. economy, as the majority of its revenue is domestically generated. The company has been gaining market share and is set to benefit as mid-sized companies increasingly seek services from larger banks. CFRA has given JPM a "buy" rating with a target price of $310, up from its March 19 closing price of $239.11. 2. Bank of America Corp. (BAC)
   • Upside Potential: 25.5%
   • Details: Bank of America is anticipated to benefit from rising investment banking activity due to pro-business policies. It ranks third globally in investment banking fee revenue. Analysts expect the bank to exceed prior estimates for net interest income (NII) and investment banking revenue this year. The target price for BAC is set at $53, as the stock closed at $42.21. 3. Wells Fargo & Co. (WFC)
   • Upside Potential: 29.1%
   • Details: Analysts expect improvements in Wells Fargo’s return on equity as it navigates ongoing restructuring efforts. The bank’s investments in its credit card division have shown promising growth. CFRA projects a target price of $94, up from $72.76. 4. HSBC Holdings PLC (HSBC)
   • Upside Potential: 17.2%
   • Details: HSBC’s strong presence in Asia positions it well for growth, particularly in asset management and private banking. Its strategy to streamline operations by divesting underperforming units is expected to enhance profitability. The target price is set at $69, closing at $58.85. 5. Royal Bank of Canada (RY)
   • Upside Potential: 26.1%
   • Details: As Canada’s largest commercial bank, Royal Bank has shown resilience in previous downturns. Analysts predict that synergies from mergers and effective operations will enhance its return on equity. The firm’s stock has a buy rating with a target price of $144, currently at $114.22. 6. Citigroup Inc. (C)
   • Upside Potential: 25.9%
   • Details: Citigroup is on a positive trajectory, having successfully executed its turnaround strategy. Analysts anticipate slight revenue growth and improved profit margins, particularly after its planned exit from the consumer banking sector in Mexico. The target price is $90; the stock closed at $71.44. 7. PNC Financial Services Group Inc. (PNC)
   • Upside Potential: 52.4%
   • Details: PNC is poised for a significant increase in net interest margin and net interest income resulting from falling funding costs and growing loan demand. The stock has a strong buy rating, with a target price of $265, following a close at $173.83. 8. NatWest Group PLC (NWG)
   • Upside Potential: 5.6%
   • Details: NatWest continues to enhance its operational efficiencies, and projected profitability boosts stem from cost-control measures and digital transformations. The stock closed at a modest valuation, indicating potential for growth.

2. M&T Bank Corp. (MTB)

   • Upside Potential: 46.8%
   • Details: M&T is focusing on its traditional banking services while maintaining efficient operations. Analysts view it favorably for its resiliency and sound management practices. The target price reflects an optimistic outlook for growth.

3. Fifth Third Bancorp (FITB)

   • Upside Potential: 49.5%
   • Details: The bank’s positioning in the Midwest and focus on community banking are expected to yield positive returns. Analysts have rated it for strong growth potential.

Conclusion

As 2025 approaches, these bank stocks present compelling opportunities for investors looking to capitalize on potential economic recovery and banking sector growth. Analysts at CFRA have provided optimistic target prices, underscoring the belief that these stocks may offer significant upside in the coming year. Investors are encouraged to conduct thorough research and consider market conditions when making investment decisions in the financial sector.

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