10 Best Bank Stocks to Buy for 2025: Analysts Highlight Strong Opportunities

As we approach 2025, numerous analysts are optimistic about the future of bank stocks, citing solid economic growth and a favorable regulatory environment as key drivers. Investors are turning their attention to specific undervalued bank stocks that show significant upside potential. This article outlines ten bank stocks that analysts at CFRA recommend for investment in the coming year.

Market Overview and Investment Climate

Entering 2025, financial analysts anticipate that many U.S. banks will benefit from issuing loans, with predictions of impressive growth. Optimism persists that rising merger and acquisition activities could help investment banks enhance their fee revenues. However, there remain concerns over economic uncertainties, including potential impacts from tariff policies and ongoing federal layoffs, which could negatively influence bank stock performance.

In this context, careful stock selection is paramount. Analysts have identified ten bank stocks that they believe hold strong potential for growth over the next year.

Top Bank Stocks for 2025

1. JPMorgan Chase & Co. (JPM)

   • Upside Potential: 29.6%
   • As a leading global financial services firm, JPMorgan has substantial assets and is poised to gain market share. Analyst Kenneth Leon anticipates that almost 80% of the bank’s revenue being generated domestically will anchor its 2025 performance. CFRA maintains a "buy" rating, setting a price target of $310 for JPM stock.

2. Bank of America Corp. (BAC)

   • Upside Potential: 25.5%
   • Bank of America is among the largest commercial and investment banks in the U.S. It is expected to benefit from pro-business policies, driving growth in investment banking activities. CFRA’s price target for BAC stock is $53, with a "buy" rating.

3. Wells Fargo & Co. (WFC)

   • Upside Potential: 29.1%
   • With its strong domestic lending operations, Wells Fargo is gaining traction following a transitional period. Analyst Alexander Yokum is optimistic about CEO Charles Scharf’s strategic vision for the bank. The CFRA assigns a "buy" rating with a price target of $94. 4. HSBC Holdings PLC (HSBC)
   • Upside Potential: 17.2%
   • Known for its vast global customer base, HSBC’s strong presence in Asia makes it an appealing investment, especially with anticipated growth in Asian banking. It currently holds a "buy" rating and has a price target of $69. 5. Royal Bank of Canada (RY)
   • Upside Potential: 26.1%
   • The largest commercial bank in Canada, RY is noted for its historical return on equity and resilience during economic downturns. The CFRA rates this stock a "buy" with a price target of $144. 6. Citigroup Inc. (C)
   • Upside Potential: 25.9%
   • Citigroup is on a steady path to institutional banking growth. Analysts see potential from its strategic exit from consumer banking in Mexico, which should streamline operations and reduce payroll costs. A "buy" rating and a price target of $90 are on record for C stock.

4. PNC Financial Services Group Inc. (PNC)

   • Upside Potential: 52.4%
   • PNC is looking to improve its net interest margin significantly in 2025. The bank is expected to outperform earnings expectations due to lowering funding costs and accelerating loan growth. A robust "strong buy" rating comes with a price target of $265. 8. NatWest Group PLC (NWG)
   • Upside Potential: 5.6%
   • Based in the U.K., NatWest is expected to show profitability improvements through stringent cost management and operational efficiency measures. The stock currently holds a position of potential growth with a "buy" rating.

5. M&T Bank Corp. (MTB)

   • Upside Potential: 46.8%
   • M&T Bank is recognized for its wealth management and corporate banking services, with anticipated positive results driven by improving operational metrics.

6. Fifth Third Bancorp (FITB)

   • Upside Potential: 49.5%
   • With a robust portfolio of financial services, Fifth Third is likely positioned for growth amid lending and investment trends projected in 2025. ## Conclusion

With the potential for sustained economic growth, the bank stocks listed are backed by analysts who believe they are well-positioned for robust performance leading into 2025. Investors seeking opportunities within the banking sector should pay close attention to these stocks and consider them when building their portfolios. As always, it’s critical for investors to perform their due diligence and understand the risks involved in stock investments.

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