10 of the Best Bank Stocks to Buy for 2025

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

As we approach 2025, analysts are optimistic about the banking sector, projecting substantial growth driven by a favorable economic landscape and regulatory environment. With increasing loan demand and a potential rebound in mergers and acquisitions, investors are keen on identifying the best bank stocks poised for significant returns.

Based on insights from CFRA, here’s a look at ten bank stocks deemed to be strong buys for 2025, along with their upside potential.

Positive Economic Indicators for Banking

Investors are encouraged by predictions of solid economic growth that may facilitate impressive loan growth across banks. Even amid uncertainties related to political policies, particularly concerning tariffs and federal layoffs, there is a sense that selecting the right bank stocks will be crucial. Here are the top ten bank stocks that analysts recommend:

JPMorgan Chase & Co. (JPM)

JPMorgan Chase stands as a global powerhouse in financial services, managing nearly $4 trillion in assets. Analyst Kenneth Leon emphasizes that the bank’s revenue is largely driven by the domestic economy, accounting for around 75-80%. Yet, JPMorgan is gaining market share and is likely to benefit from smaller firms shifting to larger banks for their financial needs. The CFRA offers a “buy” rating with a target price of $310, up from a closing price of $239.11 on March 19. ### Bank of America Corp. (BAC)

Another giant, Bank of America, is focusing on revitalizing its investment banking sector, bolstered by pro-business policies from the Trump administration. Leon believes the bank will surpass analyst expectations in net interest income (NII), which plays a critical role in organic revenue growth. With a “buy” rating, CFRA has set a price target of $53 for BAC, which was priced at $42.21 recently.

Wells Fargo & Co. (WFC)

Wells Fargo, one of the largest banks in the U.S., is undergoing a restructuring that analysts believe will improve its performance. Particularly, Jan Alexander Yokum points to CEO Charles Scharf’s leadership and the bank’s recent growth in its credit card segment. With expectations of lifting the asset cap currently in place, WFC holds a “buy” rating and a price target of $94, significantly higher than its recent close at $72.76. ### HSBC Holdings PLC (HSBC)

HSBC’s high exposure to Asian markets is appealing, according to analyst Firdaus Ibrahim. As interest rates decline, HSBC is expected to bolster its revenue through asset management services. The recent divestment from non-performing sectors has improved its financial standing. CFRA rates HSBC as a “buy” with a price target of $69, compared to its recent closing price of $58.85. ### Royal Bank of Canada (RY)

The Royal Bank of Canada, the country’s largest commercial bank, showcases a historical strength in maintaining a high return on equity. Analysts suggest that cost-cutting measures at City National, a subsidiary, will enhance profitability. The bank also benefits from expected improvements in market conditions. A “buy” rating and a $144 price target, up from $114.22 recently, reflect positive analyst sentiment.

Citigroup Inc. (C)

With a diversified portfolio and a strong institutional banking position, Citigroup has instituted an effective turnaround strategy. The bank said it plans to streamline operations further with consumer banking exits, specifically from Mexico, potentially impacting payroll costs positively. Analysts project moderate revenue growth and rate Citigroup as a “buy” with a target of $90 from a closing price of $71.44. ### PNC Financial Services Group Inc. (PNC)

Analysts foresee significant upside for PNC, projecting its net interest margin to rise dramatically. Expectations for earnings outperforming consensus estimates are also high due to falling funding costs and a robust loan growth outlook. CFRA gives PNC a “strong buy” rating with a $265 price target, up from a recent close of $173.83. ### NatWest Group PLC (NWG)

Rooted in the U.K. banking sector, NatWest is focusing on a digital transformation and strategic balance sheet management to improve profitability. Analysts note the bank’s remarkable drop in its cost-to-income ratio and low loan impairment rates, showing fiscal prudence. The stock is rated a “buy” with modest upside potential of 5.6%.

M&T Bank Corp. (MTB) and Fifth Third Bancorp (FITB)

M&T Bank and Fifth Third Bancorp are also highlighted as undervalued stocks expected to deliver substantial returns by 2025, with upside potentials rated at 46.8% and 49.5%, respectively.

Conclusion

As market uncertainties persist, the potential for considerable bank stock growth owes much to the banking sector’s adaptability amidst changing economic circumstances. These ten bank stocks are attracting attention from analysts who believe they could yield strong returns in 2025, establishing a foundation for smart investment decisions moving forward. Investors are encouraged to perform further due diligence before making investments.

Share this article: