10 of the Best Bank Stocks to Buy for 2025: Expert Picks and Insights
As investors position themselves for opportunities in 2025, bank stocks have emerged as compelling options amid expectations of solid economic growth and a favorable regulatory climate. Analysts believe these conditions may spark impressive loan growth for banks, alongside a resurgence in mergers and acquisitions that could boost fee revenues for investment banks.
However, caution remains warranted. Market volatility influenced by tariff uncertainties and federal employment shifts has introduced credit risk concerns, especially if the U.S. economy tilts toward recession. Given these complexities, selecting the right bank stocks is critical. Below, we explore 10 of the best bank stocks to consider for 2025, based on analysis from CFRA as of March 19, 2025. 1. JPMorgan Chase & Co. (JPM)
JPMorgan Chase stands as one of the world’s largest financial firms, managing nearly $4 trillion in assets. Analysts highlight that about 75% to 80% of its revenue comes from the U.S., tying its performance closely to the domestic economy’s strength. The bank is capturing market share across multiple banking segments and benefits from midsize companies increasingly shifting their loans and financial services to larger institutions. CFRA maintains a “buy” rating on JPM with a price target of $310, compared to the closing price of $239.11 on March 19. 2. Bank of America Corp. (BAC)
Bank of America ranks among the largest U.S. commercial and investment banks, with substantial wealth management operations. Analysts anticipate that pro-business policies will revive investment banking activity in 2025, where Bank of America already ranks third globally in fee revenue. Net interest income (NII) is expected to exceed analyst estimates, contributing solidly to organic revenue growth. CFRA assigns a “buy” rating and a $53 price target versus the March 19 closing price of $42.21. 3. Wells Fargo & Co. (WFC)
Wells Fargo, a major U.S. lender, primarily serves domestic markets. Analysts have confidence in CEO Charles Scharf’s restructuring strategies, especially investments in the bank’s expanding credit card business. Notably, Wells Fargo’s restrictive asset cap could be lifted in 2025, providing additional growth opportunities. CFRA rates WFC as a “buy” with a $94 price target, while the stock closed at $72.76 on March 19. 4. HSBC Holdings PLC (HSBC)
HSBC boasts a massive global footprint with more than 40 million customers and significant exposure to Asian markets. Analysts emphasize Asia’s long-term banking growth prospects and foresee asset management and private banking fee income supporting HSBC’s revenue as interest rates ease. Divestments of underperforming segments have also streamlined HSBC’s operations. CFRA gives HSBC a “buy” rating and a $69 price target, above the $58.85 closing price on March 19. 5. Royal Bank of Canada (RY)
As Canada’s largest commercial bank and the owner of U.S.-based City National, Royal Bank of Canada is known for industry-leading return on equity and resilience during downturns. Analysts expect returns to improve due to merger synergies and City National’s cost-saving initiatives, with reduced deposit pricing pressure aiding earnings. CFRA holds a “buy” rating and $144 price target, compared to a $114.22 close on March 19. 6. Citigroup Inc. (C)
Citigroup, a diversified global financial institution, is positioned for growth in institutional banking and has executed an effective turnaround strategy. The planned exit from consumer banking in Mexico will trim payroll expenses and streamline operations. Citi’s strong technology platforms and corporate treasury services underpin its steady outlook, with an anticipated 4.1% revenue increase in 2025. CFRA’s “buy” rating and $90 price target compare to the $71.44 closing price.
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PNC Financial Services Group Inc. (PNC)
One of America’s largest banks, PNC offers diverse services spanning asset management to corporate banking. Analysts expect PNC to raise its net interest margin from 2.75% to near 3% by year-end 2025. Lower funding costs, asset repricing, and accelerating loan growth underpin optimism for earnings beats. CFRA assigns a “strong buy” rating with a $265 target, well above the March 19 price of $173.83. 8. NatWest Group PLC (NWG)
NatWest leads U.K. corporate and retail banking sectors, with focus on digital innovation and disciplined growth. Operational efficiency improvements, especially through cost-cutting, have significantly decreased NatWest’s cost-to-income ratio to 53.4% in 2024 from 74% in 2020. Analysts see these efficiencies boosting profitability. CFRA valuation details with respect to price target and rating were pending, but the stock closed at a level reflecting cautious optimism. -
M&T Bank Corp. (MTB)
M&T Bank is lauded for strong community banking and consistent financial performance. Analysts note the bank’s conservative approach tends to weather economic fluctuations effectively, with expectations for solid net interest income growth in 2025. CFRA offers a positive outlook with a price target suggesting notable upside from recent closing prices. -
Fifth Third Bancorp (FITB)
Known for its regional banking focus, Fifth Third Bancorp is expected to benefit from improving loan growth and net interest income expansion. Analysts highlight the bank’s operational improvements that set it up for continued profitability gains. CFRA’s valuation indicates a robust upside potential compared to current share prices.
Conclusion
With the banking sector poised to capitalize on economic growth and regulatory tailwinds, carefully selected bank stocks offer attractive investment opportunities in 2025. Investors should consider these top picks backed by expert analysis, but remain mindful of economic uncertainties and sector-specific risks that could impact the banking landscape in the year ahead.
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Disclaimer: The stock price targets and ratings are based on analyst reports as of March 19, 2025, and are subject to market fluctuations and future developments. Investors should conduct their own research or consult financial advisors before making investment decisions.