10 Best Bank Stocks to Buy for 2025

As the financial landscape continues to evolve, analysts are identifying promising investment opportunities in the banking sector. With expectations of solid economic growth and a favorable regulatory environment, the coming year looks bright for several bank stocks. This article details ten bank stocks deemed among the best to invest in as we look toward 2025. ## Economic Outlook for Banks

Entering 2025, many industry analysts highlight a potentially advantageous environment for banks. An anticipated rebound in mergers and acquisitions may boost investment banks’ fee revenues, while overall economic expansion could stimulate impressive loan growth. However, there remains uncertainty linked to federal policies, particularly regarding tariffs and layoffs, which could create credit risks for bank stocks if the U.S. economy falls into a recession. In light of this, careful bank stock selection is becoming increasingly crucial. According to CFRA, here are ten bank stocks to consider buying today:

Top 10 Bank Stocks

1. JPMorgan Chase & Co. (JPM)

   • Expected Upside: 29.6%
   • JPMorgan Chase, a leading global financial services company with nearly $4 trillion in assets, is well-positioned to benefit from the domestic economic climate. The firm is gaining market share among midsize companies, which are opting for larger banks for their financial services. CFRA has a "buy" rating and a price target of $310 for JPM stock, which closed at $239.11 on March 19. 2. Bank of America Corp. (BAC)
   • Expected Upside: 25.5%
   • Positioned as one of the largest U.S. commercial and investment banks, Bank of America is poised to benefit from a resurgence in investment banking activity. Analysts expect the bank to surpass consensus estimates for net interest income and noninterest investment banking income in 2025. CFRA has assigned a "buy" rating and a price target of $53 for BAC stock, which was priced at $42.21 on March 19. 3. Wells Fargo & Co. (WFC)
   • Expected Upside: 29.1%
   • Following a restructuring initiative, Wells Fargo aims to improve on its reported 13.4% return on tangible common equity from 2024. Analysts feel confident in CEO Charles Scharf’s direction and expect the potential lifting of the asset cap to further enhance the bank’s performance. CFRA has a "buy" rating and a price target of $94 for WFC stock, which closed at $72.76 on March 19. 4. HSBC Holdings PLC (HSBC)
   • Expected Upside: 17.2%
   • With significant exposure to the growing Asian market, HSBC is seen as an attractive investment. Analysts anticipate that the bank’s ongoing divestment from underperforming segments will bolster its profitability. CFRA supports a "buy" rating with a price target of $69, while the stock was trading at $58.85 on March 19. 5. Royal Bank of Canada (RY)
   • Expected Upside: 26.1%
   • As Canada’s largest commercial bank, Royal Bank of Canada has demonstrated resilience even during economic downturns. Expectation of fewer pressures on deposit pricing and improved performance from its City National division positions RY favorably for the upcoming year. CFRA maintains a "buy" rating with a price target of $144, while RY closed at $114.22 on March 19. 6. Citigroup Inc. (C)
   • Expected Upside: 25.9%
   • Citigroup’s turnaround strategy is attracting attention, especially its focus on institutional banking and technology platforms. Analysts project steady revenue growth as the bank streamlines operations further. CFRA provides a "buy" rating with a price target of $90, as the stock closed at $71.44 on March 19. 7. PNC Financial Services Group Inc. (PNC)
   • Expected Upside: 52.4%
   • Analysts are optimistic about PNC’s net interest margin growth as favorable conditions influence funding costs and loan growth. A strong growth trajectory is anticipated for 2025, and CFRA has a "strong buy" rating with a price target of $265, with PNC trading at $173.83 on March 19. 8. NatWest Group PLC (NWG)
   • Expected Upside: 5.6%
   • The U.K.-based NatWest is poised for profitability improvements driven by digital transformation and disciplined growth strategies. The cost-to-income ratio has significantly improved from previous years, leading analysts to project positive performance ahead. CFRA has a "buy" rating, and the price target is yet to be updated.

2. M&T Bank Corp. (MTB)

   • Expected Upside: 46.8%
   • M&T Bank has seen impressive growth lately, particularly through its disciplined lending practices and diverse product offerings. Analysts see substantial upside potential, bolstered by ongoing economic growth. The CFRA has a "buy" rating, and the expected price target is forthcoming.

3. Fifth Third Bancorp (FITB)

   • Expected Upside: 49.5%
   • With a strong position in commercial lending and a solid investment strategy, Fifth Third Bancorp is set to see significant growth. Analyst expectations are high, and a "buy" rating has been issued, pending a revised price target.

Conclusion

The banking sector is poised to potentially thrive in 2025, driven by various economic factors and investment strategies. As concerns over market volatility persist, the careful selection of bank stocks can offer substantial upside. Investors may want to consider these ten bank stocks as part of their investment portfolios in the coming year.

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