10 of the Best Bank Stocks to Buy for 2025

As the financial landscape prepares to navigate 2025, analysts are identifying key opportunities in bank stocks, projecting favorable growth driven by economic expansion and a supportive regulatory climate. Despite the lingering uncertainties surrounding geopolitical developments and potential credit risks, certain bank stocks stand out as promising investments. According to CFRA’s analysis, here are ten bank stocks poised for upside potential in the coming year.

Economic Growth and Banking Sector Outlook

Entering 2025, analysts assert that a combination of solid economic growth and a regulatory environment conducive to banking operations could encourage substantial loan growth across the sector. Furthermore, a potential recovery in mergers and acquisitions may enhance investment banks’ fee revenues—offering investors a chance to capitalize on undervalued bank stocks.

However, it’s important to note that market anxieties regarding political issues—specifically President Donald Trump’s tariff policies—coupled with possible credit risks in the case of an impending recession, underscore the need for prudent stock selection in the banking sector.

Top Bank Stocks for Investors

Here’s a detailed look at the ten bank stocks recommended by analysts, along with their respective upsides as of March 19, 2025. ### 1. JPMorgan Chase & Co. (JPM)

• Upside Potential: 29.6%
• Overview: As one of the largest global financial services firms, JPMorgan Chase benefits from a strong domestic revenue base. Analysts predict continued market share gains and a positive outlook tied to economic performance. CFRA has assigned a "buy" rating, forecasting a price target of $310, with the stock closing at $239.11. ### 2. Bank of America Corp. (BAC)
• Upside Potential: 25.5%
• Overview: This major player in commercial banking stands to gain from a resurgence in investment banking activity fueled by pro-business policies. Bank of America is projected to exceed previous earnings expectations, with a CFRA "buy" rating and a target price of $53, closing at $42.21. ### 3. Wells Fargo & Co. (WFC)
• Upside Potential: 29.1%
• Overview: With a significant focus on the U.S. market, Wells Fargo shows promise under CEO Charles Scharf’s strategic guidance. Improvements in the credit card sector and the anticipated lifting of regulatory constraints position it favorably for 2025. CFRA has a target price of $94, with shares at $72.76. ### 4. HSBC Holdings PLC (HSBC)
• Upside Potential: 17.2%
• Overview: HSBC’s international reach and robust operations in Asia make it a key beneficiary of long-term regional growth. Analysts expect the bank to enhance profitability through strategic divestitures. With a target price of $69, it closed at $58.85, under CFRA’s "buy" recommendation.

5. Royal Bank of Canada (RY)

• Upside Potential: 26.1%
• Overview: Known for its resilience during economic downturns, the Royal Bank of Canada is anticipated to leverage merger-related efficiencies and improved performance from its U.S. division, City National. It has a target price of $144, currently trading at $114.22. ### 6. Citigroup Inc. (C)
• Upside Potential: 25.9%
• Overview: Following a focused turnaround strategy, Citigroup is positioned for growth in institutional banking and may realize cost efficiencies through operational streamlining. With a CFRA target price of $90, shares are trading at $71.44. ### 7. PNC Financial Services Group Inc. (PNC)
• Upside Potential: 52.4%
• Overview: PNC is set to enhance its net interest margin significantly, bolstered by forecasted loan growth and declining funding costs. Analysts rate it as a "strong buy," with a target price of $265 against a closing price of $173.83. ### 8. NatWest Group PLC (NWG)
• Upside Potential: 5.6%
• Overview: Focused on disciplined financial management and operational efficiency, NatWest is positioned to recover profitability with a more favorable economic environment. Analysts remain cautiously optimistic, assigning a target of $9.89, up from its current level of $9.10. ### 9. M&T Bank Corp. (MTB)
• Upside Potential: 46.8%
• Overview: M&T Bank is positioned for significant growth with the potential to expand market share. It boasts cost-efficiency improvements, which should enhance earnings potential. The target price stands at $250, while shares are valued at $170.52. ### 10. Fifth Third Bancorp (FITB)
• Upside Potential: 49.5%
• Overview: With solid operational metrics and strategic growth initiatives, Fifth Third Bancorp presents a favorable investment opportunity. The CFRA has a target of $51, while it currently trades at $34.19. ## Conclusion

As investors look to 2025 and beyond, careful selection among bank stocks is crucial. These ten candidates are backed by strong fundamentals and sustained market positions, creating opportunities for substantial growth amid an evolving economic landscape. As always, potential investors should conduct their due diligence and consider broader market dynamics before making investment decisions.

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