10 of the Best Bank Stocks to Buy for 2025

As the financial landscape shifts ahead of 2025, analysts are turning their attention to bank stocks, with many suggesting that solid economic growth and a favorable regulatory climate bode well for the industry. With a potential rebound in mergers and acquisitions able to boost fee revenues, investors are increasingly focused on strategic stock selection in this sector. Here, we explore ten of the top bank stocks recommended for investment in 2025, as identified by CFRA.

Economic Outlook for the Banking Sector

Coming into 2025, analysts express optimism about the banking sector driven by expectations of strong economic performance. However, concerns linger around the potential impact of governmental policies and geopolitical uncertainty, which may introduce credit risks for banks should the U.S. experience a recession.

Top Bank Stocks to Consider

1. JPMorgan Chase & Co. (JPM)

JPMorgan Chase stands as one of the largest global financial services providers with assets nearing $4 trillion. Analyst Kenneth Leon notes that approximately 80% of its revenue is generated domestically, making its performance heavily influenced by the U.S. economy’s strength. Despite this, JPMorgan is gaining market share in various banking sectors, and CFRA sets a "buy" rating with a target price of $310, notably higher than its March 19 closing price of $239.11. ### 2. Bank of America Corp. (BAC)
Recognized as a major player in commercial banking and wealth management, Bank of America stands to benefit from government policies that favor investment banking activities. As the bank consistently ranks high in generating global investment banking fees, Leon expects it to surpass consensus estimates for its net interest income, crucial for growth. CFRA también recommendations a ‘buy’, with a price target of $53 versus a closing price of $42.21. ### 3. Wells Fargo & Co. (WFC)
Wells Fargo is navigating a comprehensive restructuring under CEO Charles Scharf, with positive returns forecasted in the coming years. Analyst Alexander Yokum highlights improvements in the bank’s credit card sector and anticipates the lifting of its asset cap in 2025. A ‘buy’ rating accompanies a target price of $94, against its March 19 closing price of $72.76. ### 4. HSBC Holdings PLC (HSBC)
A prominent global player, HSBC holds a strategic advantage due to its significant exposure to the growing Asian market. Despite challenges such as declining interest rates, analyst Firdaus Ibrahim views HSBC favorably due to its solid asset management performance and cost-efficiency maneuvers. CFRA holds a ‘buy’ rating with a target price of $69 against a March 19 closing price of $58.85. ### 5. Royal Bank of Canada (RY)
This institution maintains a history of strong returns on equity, even in turbulent times. Analyst Yokum projects that merger synergies and operational efficiencies will enhance its profitability in 2025. The CFRA places a ‘buy’ rating on the stock with a price target of $144, compared to a closing value of $114.22. ### 6. Citigroup Inc. (C)
Citigroup is adept in the institutional banking arena and has made effective strides in its turnaround strategies. Analysts foresee modest revenue growth alongside the planned exit from Mexico’s consumer banking market, aiming to reduce operational costs. CFRA recommends a ‘buy’ rating with a target of $90 against a March 19 closing of $71.44. ### 7. PNC Financial Services Group Inc. (PNC)
Notably positioned among the largest U.S. banks, PNC is set to enhance its net interest margin significantly in 2025. Analyst Yokum forecasts exceeding earnings expectations driven by favorable funding costs and assets repricing. CFRA has issued a ‘strong buy’ rating with a price target of $265, significantly above its March 19 price of $173.83. ### 8. NatWest Group PLC (NWG)
As a central player in the U.K., NatWest is embracing digital transformation and balanced growth to improve profitability. Analyst Ibrahim emphasizes NatWest’s effective cost management strategies as a catalyst for future performance, with potential for growth in profitability. The stock currently appears restrained with a target upside of 5.6%.

9. M&T Bank Corp. (MTB)

This community bank has demonstrated resilience in its operations and a commitment to local lending practices. With sound management practices in place, M&T presents a favorable risk/reward profile for investors looking for stability and growth.

10. Fifth Third Bancorp (FITB)

Fifth Third Bank is another community-centric financial institution, well-positioned to leverage its comprehensive service model to generate revenue from diverse channels. Analysts predict substantial growth opportunities driven by ongoing economic recovery and consumer demand.

Conclusion

The banking sector presents a mix of opportunities as we look to 2025. Careful stock selection is essential, whether for long-term investment or short-term gain. As the economy evolves, these ten bank stocks offer promising potential for those looking to enhance their portfolios. Always consider individual financial situations and seek guidance from a financial advisor before making investment decisions.

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